Bafounta,16, is considered one of the finest young talents to come out of France in recent years.
An imposing 1.93m, he has already won comparisons to a young Paul Pogba for his accomplished midfield play in Lyon and Nantes' youth divisions.
The Bundesliga side impressed Bafounta with their impeccable track record with young players, having also promised not to rush him into first-team action.
"The first time I had him at Under-15 level Kamal was 13. We were playing against Bourg-Peronnas and 30 minutes in he picked up the ball in our half, dribbled past four or five players and scored," Renard recalled.
"That move has stayed in my mind because it shows why Kamal has progressed so much. He was much bigger than the rest, his physical and technical talent gave him a huge advantage.
"What is certain is that he is less extravagant than Pogba. It's not quite the same style of play either but I'm sure he has the ability to do as well as him.
"He is a very intelligent boy, polite, educated and very calm, I can't even remember him getting angry."
Bafounta will sign a three-year deal with BVB.