Burundi is set to transfer over 944 billion Burundian francs to its provinces and communes during the current fiscal year as part of an ambitious financial decentralization initiative. Of this total, more than 152 billion FBu are specifically allocated to communes. This significant financial commitment shows the government's resolve to empower local administrative entities. Innovations planned for the 2026-2027 fiscal year, which marks the effective start of deconcentration and decentralization of budget execution, include the appointment of provincial public accountants, Fonic's responsibility for communal investment credits, and the adoption of a principal accountant in each commune. These measures are designed to strengthen financial management at the local level and ensure greater accountability.
Despite these full measures, Jean Ndenzako describes the current process as more of a 'reinforced deconcentration' than full fiscal decentralization, noting that major decisions remain centralized. Mr. Ndenzako stated, "A real fiscal decentralization requires not only the transfer of resources but also real decision-making autonomy, clear competencies, accountability mechanisms, and institutional capacities." He added that progress "will be real if it is accompanied by a clarification of competencies, a sustainable reinforcement of capacities, and a true empowerment of local authorities," along with "strong internal controls." Ndenzako further notes concerns regarding the inherent weakness of communes' own revenues and the substantial burden of administrative and financial oversight, which could impede genuine decentralization.
Massive Fund Transfer Begins
Burundi's financial decentralization plan includes significant allocations for its administrative divisions. For the current fiscal year, over 944 billion Burundian francs will be transferred to provinces and communes. More than 791 billion FBu of this amount have been allocated specifically to the provinces, demonstrating a substantial commitment to provincial financial autonomy. Meanwhile, more than 152 billion FBu have been designated for the communes, aiming to bolster their operational capabilities and investment potential.
Looking ahead, the budget for the fiscal year 2026-2027 details precise figures for these transfers, reinforcing the long-term commitment to this initiative. Provinces are slated to receive 791.7 billion FBu, a slight increase from the current allocation, reflecting continued support for their expanded roles. Communes, on the other hand, will be allocated 152.6 billion FBu, ensuring they too have the necessary resources for local development projects and services. These figures represent the financial resources earmarked for local governance as part of the country's broader decentralization strategy. The total projected transfer of funds for the 2026-2027 fiscal year exceeds 944 billion FBu, aligning with the government's stated objectives to empower local authorities through direct financial injections. This follows an earlier allocation for the current fiscal year, where over 152 billion FBu were designated for the communes, indicating a consistent approach to communal funding. The substantial nature of these transfers shows the transformative potential of this financial decentralization, aiming to shift decision-making and resource management closer to the citizens.
New Era of Local Governance
The fiscal year 2026-2027 marks the effective commencement of the deconcentration and decentralization of budget execution in Burundi. This period is anticipated to usher in a new era for local governance, granting provinces and communes more direct control over their financial affairs. To prepare for this significant shift, the Primature organized extensive training and awareness workshops in various provinces. These key sessions targeted provincial and communal officials, alongside representatives from Fonic, to ensure a full understanding and readiness for the new financial framework. The workshops covered critical aspects of budget management, accountability, and the operational procedures associated with the decentralized system.
Burundi has also undergone a significant administrative restructuring, transitioning from 18 to 5 provinces and from 119 to 42 communes. This consolidation is intended to streamline administration and potentially enhance the efficiency of resource allocation and service delivery. Jean Ndenzako, an expert on the subject, notes concerns regarding the financial autonomy of these local entities, despite the administrative changes. Ndenzako points to the inherent weakness of communes' own revenues and the substantial burden of administrative and financial oversight as significant challenges. He notes that the current process is more akin to "une déconcentration renforcée" (reinforced deconcentration) rather than full fiscal decentralization, suggesting that while resources are being distributed, the ultimate power to make decisions about their use remains largely centralized.
Ndenzako states that "une véritable décentralisation fiscale exige non seulement le transfert de ressources, mais aussi une autonomie réelle de décision, des compétences claires, des mécanismes de redevabilité et des capacités institutionnelles" (a real fiscal decentralization requires not only the transfer of resources, but also real decision-making autonomy, clear competencies, accountability mechanisms, and institutional capacities). He emphasizes that progress "sera réelle si elle s’accompagne d’une clarification des compétences, d’un renforcement durable des capacités et d’une véritable responsabilisation des autorités locales" (will be real if it is accompanied by a clarification of competencies, a sustainable reinforcement of capacities, and a true empowerment of local authorities), and also includes "contrôles internes robustes" (strong internal controls). Ndenzako further cautions that decentralization "ne deviendra une véritable avancée durable en matière de gouvernance locale que si les risques de capacités, de capture et de mauvaise gestion sont activement traités" (will only become a sustainable advance in local governance if risks of capacity, capture, and mismanagement are actively addressed). His insights show the complex interplay of financial, administrative, and governance factors that will determine the success of Burundi's decentralization efforts.
Experts Voice Cautionary Notes
While the financial decentralization project is viewed as a positive step, several experts have voiced cautionary notes regarding its implementation. Gabriel Rufyiri, President of Olucome, expressed that while the financial decentralization project is welcomed in principle, its implementation is proceeding too quickly. He stated that this rapid pace is occurring without sufficient preparation of essential management tools, necessary skills, and strong control mechanisms. Rufyiri's concerns highlight the potential for inefficiencies or mismanagement if the foundational elements for effective local governance are not firmly established before the full transfer of responsibilities and funds. This sentiment is echoed by Faustin Ndikumana, National Director of Parcem, who noted concerns regarding the logistical readiness of communes. Ndikumana stated that these local administrative units are not well-equipped to manage the new, substantial funds that are slated for transfer. He pointed to potential deficiencies in infrastructure, human resources, and technical capacity at the communal level, which could hinder the effective utilization of the allocated resources.
Economist Jean Ndenzako noted that the reform represents a potential advance in local governance for Burundi. However, Ndenzako cautioned that the ultimate effectiveness of this initiative depends critically on the capacity of the decentralized entities to manage these newly allocated resources. He emphasized that the current process is more accurately described as "une déconcentration renforcée" (reinforced deconcentration) rather than full fiscal decentralization, implying that significant autonomy is still lacking. Ndenzako stressed that "une véritable décentralisation fiscale exige non seulement le transfert de ressources, mais aussi une autonomie réelle de décision, des compétences claires, des mécanismes de redevabilité et des capacités institutionnelles" (a real fiscal decentralization requires not only the transfer of resources, but also real decision-making autonomy, clear competencies, accountability mechanisms, and institutional capacities). His analysis suggests that while financial transfers are key, they are only one component of a truly decentralized system.
Ndenzako further elaborated on the conditions necessary for genuine progress, stating that "L’avancée sera réelle si elle s’accompagne d’une clarification des compétences, d’un renforcement durable des capacités et d’une véritable responsabilisation des autorités locales" (the advance will be real if it is accompanied by a clarification of competencies, a sustainable reinforcement of capacities, and a true empowerment of local authorities). To safeguard against potential issues, Ndenzako recommends the implementation of "contrôles internes robustes" (strong internal controls) within local administrations. Beyond internal measures, he advocated for strengthened external audits conducted by the Court of Accounts to ensure full oversight and accountability for public funds. Additionally, Ndenzako called for greater transparency in public procurement processes at the local level, a measure that could significantly reduce the risks of corruption and improve public trust. He concluded that the decentralization initiative "ne deviendra une véritable avancée durable en matière de gouvernance locale que si les risques de capacités, de capture et de mauvaise gestion sont activement traités" (will only become a sustainable advance in local governance if risks of capacity, capture, and mismanagement are actively addressed). These expert opinions collectively show the need for a cautious, well-planned, and thoroughly monitored approach to Burundi's ambitious financial decentralization, ensuring that the transfer of funds translates into tangible improvements in local governance and public service delivery.