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

For domestic logistics, Burundi has an effective template with its coffee sector. Similar infrastructureshould be developed for other selected products, notably horticultural. Rural logistics services arefacilitated by careful development of transport and storage infrastructure, incentives to service providerstypically encouraged by producer initiatives to provide predictable demand in terms of quantity andlocation, and information services for farmers to know when, where and how much to sell. The coffeesector has a fairly dense and well distributed network of washing stations representing the main signalfor farmers to produce for the market. Selected market centers can be encouraged to incentivizehorticulture farmers to also produce for the market.8.2 Logistics qualityIncreasing the involvement of Burundian service providers in logistics in the country will havepositive effects. One can notably identify three main benefits: (a) it reduces the risk that services are notavailable when required, as is currently the case; (b) it will enable Burundi to participate more in theevolving integrated logistics services markets under the EAC integration program; and (c) Burundi canthen grow into a distribution center for Eastern DRC. This requires fundamental reforms in how thecountry deals with transit, competition between modes of transport (road, rail / barge, road / barge, air),and the mastery and participation of domestic operators in international transportation. However, themost critical area is to design programs for financing the Burundi trucking sector. The sector is currentlyvery small and struggling to compete with Tanzanian and other countries’ fleets.The above would have to be supported by a program of logistics skills development. Transportationand logistics services (storage, cargo handling, maintenance, mechanical assistance to fleets of trucks,packing activities, groupage and distribution) have great potential to create jobs and grow incomes.Skills development programs are critical in all the areas of logistics, where it is apparent that skills levelsare currently very weak.8.3 CustomsCustoms is one of the areas identified in the original DTIS where Burundi has made the mostprogress, but more can be done. OBR in particular is making great strides in simplifying cargoclearance procedures and developing a modern customs and border management regime. It is importantto build on this success. Focus should be in areas already identified, but in particular:- further automation including data sharing especially with Tanzania Revenue Authority. This canbe designed around the already proven solution of RADDEx (Revenue Authorities Digital DataExchange), which transmits customs declaration in near real time, from point of initial lodging,through all affected transit points to final destination. This automatic electronic transmissiondirectly decreases transit delays through provision of advance notification, facilitation of prelodging,elimination of duplicate data entry and risk analysis. This automatic regionalconnectivity in customs greatly contributes to more efficient and paper free processes at bordersand to creating a transparent trading environment. RADDEx has already been deployed atvarious border posts in the EAC and doing the same at Kobera could be strategic;- Data sharing between ASYCUDA and SYCTAS.Burundi and Tanzania signed in 2011 an MoU to convert the Kobero/Kabanga border post to one-stopoperation. The one stop border post that is being constructed there should be supported by proceduralreforms to maximize the intended benefits. Emerging lessons coming from one-stop border posts that arealready in operation point to such reforms as being more important than even the physical co-location ofborder agencies of the two countries.8.4 Regional cooperation112 / 153