From 1 January 2027, Burundi will require passenger cars and jeep-type vehicles ordered for import to be electric or hybrid. The measure is set out in Article 221 of the 2026/27 Finance Law, with tax incentives in Article 220. Electric vehicles pay no import duty, VAT or excise. Hybrids pay 25% customs duty only. The policy responds to chronic fuel shortages, a heavy fuel import bill and the need to cut transport emissions.
The direction is right. The design needs work. The law leaves key terms undefined, its statutory window is short, and the supporting charging and battery standards are not yet in place. This policy brief explains what the policy does, why it matters, where the gaps are, and what would make it work.
Why the mandate matters
Burundi is a low-income, landlocked country of 14.4 million people. In 2023, 15,552 new vehicles were registered, of which 6,794 were cars and other vehicles and 8,758 were motorcycles or tricycles. Of the 4,748 passenger cars first registered, 93.8% were five years or older. Burundi imported US$255.8 million of mineral fuels in 2023, equivalent to 22% of total imports and 68% of exports of goods and services. Shifting new car demand toward hybrids and electric vehicles reduces the fuel bill, improves air quality and lowers exposure to global oil prices.
The tax wedge can work
The tax package changes the economics. A used electric vehicle with a US$10,000 CIF value lands at about US$10,000. A used petrol car with a US$8,000 CIF value lands at about US$12,600 once duty, excise, VAT and the anti-pollution penalty are included. A used hybrid at US$10,000 lands at about US$12,500. At the new end, a US$20,000 electric vehicle lands cheaper than a US$15,000 petrol car. Running costs reinforce the case. At 15,000 km a year, a petrol car spends about US$1,580 on fuel, a hybrid about US$988, and an electric vehicle about US$185 to US$296 depending on the charging tariff.
The gaps to close
The law does not define “order”, “hybrid” or “jeep-type”. A pre-2027 order rush, mild hybrids and converted vehicles could weaken the rule. No implementing circular, certification protocol or penalty procedure has been published. Article 119 defines importation as imports from outside the East African Community, which may leave intra-EAC imports outside the ban. There is no battery health or recycling standard, charging is limited to Bujumbura, the grid is weak upcountry and consumer finance is scarce. The measure covers orders from 1 January to 30 June 2027 unless it is renewed in the next finance law.
What Burundi can learn from others
Ethiopia’s internal combustion engine import ban, combined with EV tax incentives, produced about 15,000 electric passenger cars by 2024, nearly 5% of the car stock, with adoption concentrated in Addis Ababa. Rwanda, Kenya, Tanzania and Malawi have built markets through fiscal incentives, charging rules and public fleet targets rather than a broad car ban. Uganda’s experience shows that hybrids dominate when charging is weak and that policy stability matters. Nepal reached 73% EV share of new car sales in 2025, but the fiscal cost triggered a reversal. The lesson is consistent: a ban can shift the market, but it works best when paired with charging, standards, finance and a multi-year signal.
Recommendations
- Publish the implementing circular by March 2027. Define order, hybrid, jeep-type, used vehicles, certification and penalties, and clarify the anti-pollution penalty and the intra-EAC scope.
- Create a pre-2027 order and stock registry so dealers declare orders placed before 1 January 2027 and vehicles in transit.
- Adopt a battery health and recycling standard with a state-of-health certificate of at least 80%, a battery passport, a minimum warranty and a take-back obligation.
- Publish a charging master plan and an electric vehicle tariff, targeting Bujumbura, provincial capitals and transport corridors, with chargers at public buildings and fuel stations and an off-peak tariff.
- Make used hybrids and electric vehicles affordable through a green credit line or guarantee, a scrappage or trade-in scheme, and leasing or battery-as-a-service options.
- Renew the mandate in the 2027/28 finance law and publish an annual report on registrations, imports, charging points, tax expenditure and fuel savings.
Burundi has made a positive choice. A clear circular, a battery standard, a charging plan and affordable finance would turn the ban into a durable market signal.
This policy brief is available in English and French. Download the version you need below.
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