III.3.External trade policy environmentMore efforts are necessary to ensure that commitments made in different forums are coherent (forexample the trade negotiations in the framework of the WTO, EAC and COMESA) and to monitor theireffective implementation. This has largely been lacking so far, notably due to limited and non-systematiccooperation between the Ministries of Trade and of EAC Affairs. In this regard, Burundi could learnfrom other countries’ experience in the region and elsewhere, particularly from low-income countrieswho have managed to establish efficient coordination mechanisms on trade-related issues despite limitedinstitutional capacities. Also, the planned regional integration strategy needs to be developed andimplemented.IV. <strong>Main</strong>streaming trade and capacity buildingIV.1. Trade policy coordination, including <strong>DTIS</strong> implementationInstitutional coordination, at the government level and with the various development partners andother stakeholders, particularly the private sector, is a critical challenge for the future. Regularcoordination is required to ensure that reforms and efforts undertaken to improve the country’s trade andbusiness environment take into account the interests and capacities of the various stakeholders. Moreoften than not, these efforts involve not only the actors directly responsible for trade or investmentrelatedissues (such as the Ministry of Trade, the revenue authority OBR, the investment agency API,etc.) but also other institutions, in charge of related policies (finance, education, immigration,standardization, other line ministries and regulatory authorities, professional bodies, etc.). As a first step,the <strong>DTIS</strong> update should be widely disseminated, including beyond trade and investment circles and tothe private sectors.IV.2. Export promotion activitiesSupport should be provided to help Burundian exporters gather information about foreignmarkets. At present, limited knowledge of the rapidly evolving global markets (notably for foodproducts), especially in emerging markets, and insufficient knowledge of international norms andstandards, particularly sanitary and phytosanitary standards (SPS), lead to suboptimal strategicpositioning of products. In addition, limited knowledge about market conditions in neighboring countrieslimits Burundi’s regional exports. Training activities that reduce such information asymmetries shouldbe encouraged. Examples include electronic and phone based market information systems forsmallholders, training on marketing strategies for the specialty coffee, horticulture and tourism sectors,or initiatives to raise awareness on SPS and the establishment of a regulatory and operational frameworkfor SPS compliance. An export promotion service within the API, initially planned but still virtual due tothe absence of dedicated resources, should be established.IV.3.Capacity buildingWeak institutional capacity continues to undermine Burundi’s ability to formulate and implementtrade policy reforms. Lack of adequate human, financial and technical resources in newly createdinstitutions, such as the Ministry for EAC Affairs, but also in older ones such as the Ministry ofCommerce and Industry, largely prevent them from operating efficiently. This capacity deficit, whichwas identified as a high priority in the 2004 <strong>DTIS</strong>, still reduces the country’s ability to abide by itsinternational and regional commitments, and reap the full benefits from increased integration.Institutional coordination, at the government level and with the various development partners and otherstakeholders, particularly the private sector, needs to be pursued in a systematic way. Furthermore, poorreliability and availability of data on trade-related issues is a serious obstacle to evidence-based policy10 / 153
making. Efforts to improve official trade statistics and initiate collection of data on informal cross bordertrade flows should be made at the national and regional levels.Finally, contrarily to the approach adopted for the first <strong>DTIS</strong>, the new Action Matrix voluntarilyomits sector specific recommendations for existing export products, such as coffee and tea, or forsectors with potential, such as horticulture and tourism. The sectoral case studies in the <strong>report</strong>provide analyses of the constraints and opportunities in these different sectors, as well as indications onthe way forward. However, the Action Matrix does not directly propose specific objectives or targets forthem, notably because such objectives are already set in the framework of ongoing projects, in thecoffee, horticulture and tourism sectors for example. Rather, it has been decided to focus on the crosscuttingissues that prevent the emergence of new sectors and hamper trade performances. These prioritiesfor policy action are nevertheless directly relevant to the key or potential export sectors mentionedabove. For example, recommendations in the Action Matrix concerning the development of agriculturalcooperatives and strengthening of agricultural support services, as well as the improvement of logisticsand construction of storage facilities, address key constraints to the production and export ofhorticultural products. Likewise, recommendations to improve access to finance and to developBurundi’s connectivity within and outside of East Africa are critical for the development of the tourismsector in the country.To guide the implementation of the Action Matrix in the coming years, the following top 10priority actions have been identified:1. Adopt logistics strategy in 2013 and implement it by 2015, include review of competition issuesaffecting transport and logistics2. Adopt small-traders charter by end of 2012 and monitor implementation throughout 20133. Regulatory review mechanism for NTMs in place by end of 20134. Remove the relevant NTBs in Burundi by end of 20135. Regulatory assessment mechanism for services in place by end of 20126. Financial Sector Regionalization Strategy implemented by end of 20147. Regional Integration Strategy in place by end of 20138. Trade policy objectives included in major national strategies9. Export promotion plan developed by end of 2013 and implemented by end of 201410. Conduct regular training for relevant stakeholders (e.g. professional associations, sectoral exports,public and private sector representatives) in the priority areas identified in the Action MatrixThe final and interim targets identified in the Action Matrix will be discussed at the ValidationWorkshop in Bujumbura. Also, an institutional mechanism to monitor the implementation andimpact of interventions and to enhance accountability will be put in place at the workshop. Themonitoring mechanism will comprise government officials, the private sector and donors. A cleardistribution of tasks will be devised and the entities that will be held accountable for attainment ofspecific performance outcomes will be identified at the validation workshop.11 / 153
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Figure 3.5: Burundian coffee value
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sales of specialty coffee by cooper
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long distances, given the high cost
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The over exploitation of land is of
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logistics chain. Other types of fac
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CHAPTER 4 - Non-tariff Measures: Th
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Figure 4.1: Coverage and frequency
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Some of the most heavily regulated
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standards, which kindly share the m
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public sectors would have more clou
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CHAPTER 5 - Strengthening Trade Fac
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3. Size of ShipmentsThe small avera
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logistics services on the other. Ty
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Table 5.3: Characteristics of Clear
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The Central Corridor is potentially
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Air connectivity, while limited in
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Kigoma and Bujumbura lake ports. Th
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In its Strategic Plan 2011-2015, th
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increase reliability would therefor
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8. RecommendationsThe foregoing sho
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Cooperation at the regional level a
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(BIF billion) (%)1. Primary sector
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A striking feature of Burundi’s s
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Business servicesNumber of accounta
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At the same time there exist severa
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Under the capacity building compone
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MadagascarCameroonSenegalKenyaMalaw
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Explaining the Segmentation of Mark
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. Adequate regulations that ensure
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The pace of integration is largely
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take time to overcome, are likely t
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and to domestic travel spending, as
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the attractiveness of the sector fo
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4. The challenges facing tourism in
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supply, hospitals), and in large-sc
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durable improvements in terms of st
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- the introduction of a single EAC
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Box 7.4: Examples of regional conse
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cultural and social sustainability
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ICG. 2012. Burundi: A Deepening Cor
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World Bank. 2010c. Reform and Regio