Why has Burundi experienced a trade deficit and dependence on foreign aid?

Burundi’s economic challenges, including a persistent balance of trade deficit and heavy reliance on foreign aid, stem from several structural and historical factors.12

The trade deficit is largely driven by the fact that export earnings—primarily from coffee and tea—often cover less than half the cost of imports, such as foodstuffs, capital goods, and petroleum products. This imbalance is exacerbated by a steady rise in consumption and investment costs, coupled with declining international prices for its primary exports.2

Furthermore, the country’s economic development has been severely hindered by:
* Civil Strife and War: Decades of conflict and political instability have devastated the economy, limited tourism, and contributed to widespread poverty.12
* Economic Sanctions: Following the 1996 military coup, international sanctions severely restricted exports and imports, further damaging the nation's financial stability.1
* Subsistence Agriculture: The economy remains heavily dependent on traditional agriculture, with industrial activities accounting for less than one-fourth of the gross domestic product.1