(DTIS) Update, Volume 1 – Main report - Enhanced Integrated ...

8. RecommendationsThe foregoing shows that Burundi needs to make some major decisions to improve its tradefacilitation and logistics performance. This is the only way to enhance its regional and internationaltrade integration. In order to effect this, Burundi has to promote and support excellence and expertise inwater, rail and road transport, transit procedure, and distribution systems. This should be done to servenot only Burundi but mainly the regional market, and to offer modern, well-sized logistic services givingadded value to regional economic operators from the DRC, Uganda and Rwanda.A comprehensive approach to trade facilitation and logistics improvement must be developed. TheDTIS 2004 prioritized customs and border management measures. It is apparent that significant progresshas been made in implementing them, with notable improvements on the ground. The government iskeen on continuing to pursue and deepen the earlier interventions. This of course is important andremains particularly relevant to continued improvement. However, as the LPI data on Burundi show,there are various other weaknesses in the country’s performance across all six dimensions, includingthose where the government policy can have a direct impact, namely infrastructure, customs andlogistics quality. A fourth area included in the LPI data, active participation in regional cooperationprograms, is also critical. This was recognized in the DTIS and clearly remains pertinent. Therecommendations in this DTIS update are designed around these four broad areas.8.1 Infrastructure developmentThe development of both hard and soft infrastructure occurs in one country, but many nationalinfrastructure projects have a wider regional dimension. They can notably be planned andcoordinated with several countries, connect to existing regional networks, or have spillover effects onneighboring countries. Regional infrastructure ranges from simple projects that involve two countries,such as building a road link or negotiating a trade facilitation agreement, to complex ones that involveseveral countries such as the Northern Corridor, in which many countries cooperate and coordinate theiractivities for common benefit. Infrastructure development is included in many regional treaties toprovide the framework for aligning sector policies, designing regional master plans, developing aportfolio of synergistic projects, harmonizing regulatory regimes and investment codes, and mobilizinginvestment resources. Increasingly, nations are moving away from integration strategies that are basedsolely on formal trade agreements and towards strategies that include at least some integration ofinfrastructure policies.For Burundi, improving logistics necessarily implies strong regional cooperation. Ideally it wouldbe better if landlocked countries such as Burundi were able to directly invest in the infrastructure ofimportance to them. However, the geography of East Africa is such that most of the investment lies inTanzania in particular. This issue was raised by Burundi as far back as 1979 when TRC was prepared toaccept additional rolling stock but was not willing to concede its dedicated use for Burundi traffic or toaccept the concept of Burundian trains. For Rwanda and Burundi traffic, the use of dedicated trains may,given the imbalances in traffic, appear inefficient, increasing empty running. But if the customer iswilling to pay for the enhanced service, then TRC should be willing to provide it, especially if itsdomestic traffic capacity is not affected.A critical consideration is the incentive for Tanzania to prioritize this infrastructure development.There are two main reasons why improving infrastructure that will benefit Burundi is important toTanzania: (a) the Western regions of Tanzania have significant growth potential especially in mining,agriculture and fisheries in the Great Lakes. The Government of Tanzania has sought to promotedevelopment in the region through the Spatial Development Initiative, an approach which has provedeffective in Southern Africa, and (b) Tanzania can access the large markets in Eastern DRC. Transitaccess across Burundi and Rwanda could provide direct access to this significant potential market forTanzanian products.111 / 153