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GIZ cuts funding to Burundi as Nkurunziza begins third presidential term

The GIZ, a leading German development agency, asked the East African Community (EAC) to exclude Burundi from all programmes it funds. As the EAC makes decisions through consensus, this would also have negative effects on the whole regional bloc. The GIZ's decision to cut funds stems from the controversial third term of Pierre Nkurunziza as Burundis President. The US as well as European countries have also threatened with serious consequences.

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The East African Community generates 70% of its yearly budget from development partners. Following Norway, Germany is the second largest contributor. The fact that the GIZ wants to exclude Burundi from its projects does not only lead to major consequences for the county itself, but also for the whole region. The projects of the EAC require consensus among the member states, which given an exclusion of Burundi is impossible to find. Many infrastructure and regional integration related projects are therefore in danger to slow down or even fail.

Moreover, the US as well as France, Belgium and the Netherlands have cut their bilateral funds to Burundi. As a consequence the country will lose hundreds of millions of euros. In case more development agencies follow the GIZ in sanctioning Burundi on the level of the EAC, this could severely limit the institutions scope of action. However, the EAC would have a range of options to ensure that the crisis in Burundi does not effect the whole region. Firstly, article 146 and 147 of the EAC Treaty allow for a suspension of a member state, if that particular state fails to observe und fulfill the organization's founding principles, or even an expulsion, if the particular state commits gross and persistent violation of these principles. Secondly, the EAC could try to find ways to be less dependent on their donors by raising member state contributions or introducing a levy on imports into the region.

A third possibility would be Nkurunziza's resignation and new elections. This option, however, does not appear to be too promising, as the current President of Burundi has not shown much reaction to international pressure so far.

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