Burundi, a landlocked country in East Africa, has vast untapped natural resources. It has large mineral deposits, including an estimated 180 million tons of nickel, along with uranium, gold, rare earth oxides, and 600 million tons of peat.
About 42.8% of its land is arable, making agriculture the main economic activity. Forests span roughly 279,640 hectares to support diverse ecosystems with both native and planted species.
Water bodies like Lake Tanganyika, the world’s second-largest freshwater lake by volume, and different rivers have the potential for fishing and irrigation. However, poor infrastructure and limited technology continue to delay resource development.
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Burundi’s Natural Resources And Their Locations
Here are the natural resources that have been discovered in Burundi and their locations:
| Natural Resources | Locations |
|---|---|
| Nickel | Musongati region in southeastern Burundi |
| Gold | Northern and northeastern regions, including Muyinga and Cibitoke provinces |
| Peat | Bururi Province (southern Burundi) |
| Rare Earth Oxides | Eastern plateaus |
| Arable Land | Central Plateaus, including Kirimiro, Buyogoma, and Bweru regions |
| Forests | Kibira National Park (northwest) and Ruvubu National Park (northeast) |
| Water Resources | Lake Tanganyika (southwest), Lake Rweru (north) |
| Tea Plantations | Teza region in Muramvya Province |
| Coffee Plantations | Kirimiro region in Gitega Province |
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Burundi’s Natural Resource Discoveries
Discovered in 1972 during a joint program by the Burundian government and UNDP, Musongati has one of Africa’s largest nickel reserves, with around 150 million tons of nickel laterite ore. Exploration included drilling up to 12,000 meters, supported by $200 million from UNDP.
Although results were promising, political unrest and civil war halted development. Later efforts by Samancor Nickel and BMM International in the 2000s confirmed the site’s potential, but mining licenses were revoked in 2022.
Nyabikere and Waga also hold nickel deposits explored under Samancor’s permit, but both are underdeveloped. In Cibitoke and Kayanza, gold has been extracted from riverbeds for decades by artisanal miners using basic tools.
While low in grade, these deposits support rural employment. In Cankuzo and Ruyigi, early surveys found gold suitable for artisanal mining, though limited geological data hinders expansion.
The Gakara site near Bujumbura contains rare earth veins rich in bastnäsite and monazite. Rainbow Rare Earths began mining at Gasagwe and Murambi in 2017, producing ore with up to 55% TREO.
A processing plant at Kabezi handled crushing and gravity separation, but operations have faced financial setbacks. In Ryamukona, artisanal miners extract coltan near the Mwogere River, causing environmental issues.
In 2017, authorities seized over 1,000 kilograms during smuggling attempts. Cassiterite and coltan deposits in Murehe, rediscovered under a forest reserve in Kirundo, were once mined in the 1980s.
Peat reserves in the Akanyaru Valley, estimated at 600 million tons, are managed by ONATOUR and considered for domestic energy use and nickel processing. Tin, tungsten, niobium, and tantalum are mined in Kayanza and Kirundo on a small scale for export.
Viability Of Burundi’s Natural Resource
Burundi is rich in natural resources that, if effectively managed, could drive sustainable economic growth.
Nickel
As we’ve said earlier, Burundi’s Musongati region has one of Africa’s largest nickel reserves, estimated at 150 million tons. This presents an economic opportunity for exports.
However, poor infrastructure and political instability continue to stall large-scale mining. The global demand for nickel is strong due to its use in stainless steel and electric vehicle batteries.
Gold
Gold mining in Burundi is mostly artisanal, with low-grade deposits found in Cibitoke and Muyinga. Though gold contributes to exports, its impact is limited by the absence of modern mining technologies. Global demand is steady, with room for growth if industrial-scale operations are introduced.
Rare Earth Elements
High-grade rare earth deposits in Gakara, with ores containing up to 55% TREO, show strong economic promise. Operations led by Rainbow Rare Earths revealed this potential, but progress halted due to financial and political setbacks. These elements are great for electronics and green technologies, increasing their global importance.
Peat
With reserves estimated at 600 million tons, peat in Buyongwe is mostly used in prisons and military facilities. It is underutilized as an alternative energy source despite its potential to reduce dependence on wood fuel.
Forests
Forests support key industries like construction and furniture-making, but a 2% annual deforestation rate threatens long-term use.
Reforestation is essential to preserve this resource. Wood is the main energy source, accounting for over 90% of national consumption.
Arable Land
Agriculture drives half of Burundi’s GDP and employs 90% of its population. Coffee and tea lead exports but face issues like soil erosion and climate change.
Implementing sustainable farming could improve yields. These crops remain competitive and offer reliable export revenue.
Export Potential Of Burundi’s Natural Resources
Burundi has untapped export potential across several resource sectors, which could drive economic growth and diversify national revenue.
Nickel Export
Nickel exports are small, about $6 million in 2021, due to infrastructure challenges. With rising global demand charged by the electric vehicle industry, Burundi could benefit by strengthening its mining infrastructure and governance. The Standard Gauge Railway project, if completed, could boost nickel exports by up to 50% in five years.
Gold
Gold generated $20 million in 2020. Although global demand is stable, the sector relies on artisanal mining. Formalizing this segment and providing training and modern equipment could raise output and improve quality.
Rare Earth Elements
Rare earth exports reached $10 million in 2022, driven by the Gakara deposit. These elements are in high demand for electronics and renewable technologies.
However, financial and logistical barriers hinder growth. Securing investments and improving infrastructure could position Burundi as a competitive exporter in this sector.
Agricultural Products
Agriculture is Burundi’s top export sector, with coffee earning $60 million in 2020. Despite strong demand, productivity is threatened by climate change and soil degradation. Investment in irrigation, sustainable farming, and crop diversification could increase export volumes.
Water Resources
While water isn’t exported directly, Lake Tanganyika supports a fishing sector that earned $1 million in 2020. Expanding aquaculture and enforcing sustainable fishing practices could improve exports and food security.
Economic Impact Of Burundi’s Natural Resources
Burundi’s natural resources are a big part of its economy, with key sectors such as agriculture and mining contributing to the country’s economic development.
Contribution To GDP And Employment
Burundi’s economy is dependent on its natural resources, with agriculture accounting for about 50% of the GDP and providing employment to 90% of the population.
Coffee and tea, key exports, are notable contributors to foreign exchange, with coffee bringing in $60 million in 2020, according to the World Bank.
The mining sector, gold and nickel, has also been expanding, adding to GDP. In 2022, mineral exports generated $20 million, showing the growing potential of this sector, as reported by the IMF.
Revenue Generation
Natural resources like coffee, tea, gold, and timber are major export commodities. In 2022, total exports amounted to $208 million, with agricultural products forming the largest portion of trade, as noted by the CIA World Factbook.
The discovery of rare earth elements at Gakara and the ongoing development of nickel mines could lead to a significant boost in export revenues if infrastructure and governance improve.
Job Creation
Agriculture is the primary source of employment in Burundi, with most households involved in subsistence farming or cash crop production. Agroforestry initiatives have led to improvements in agricultural productivity and employment opportunities.
Additionally, artisanal mining provides a livelihood for around 160,000 Burundians. However, this sector faces challenges such as a lack of formal regulation and concerns about sustainability.