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

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Identified constraintregulatory framework in othersectors, combined with weakcapabilities and a legacy ofdiscretionary and opaqueenforcement, stifle thediversification of Burundi’seconomy and increase tradecostsRising NTBs in at least someneighboring countries highlightweak EAC disciplines and a lackof appropriate diplomaticreaction by partnersInadequate regulatoryframework to supportliberalization efforts in servicesProposed Actioncooling-off period before measures are putin place;o Limiting new regulations to cases wherethey address clearly-identified societaldemands.Strengthen regulatory review mechanism on thebasis of the existing NTB monitoring committeeRaise the NTB issues in EAC forums and pushfor their inclusion in the EAC Time-boundprogram for the elimination of identified NTBsadopted by the EAC Council in 2009Coordinate regulatory reform with liberalizationeffortsSectoral example: Financial servicesSectoral example: Professional servicesPriority /timeframeResponsibleAgencySectoralregulatorsandministries/Chamber ofCommerce2013-2014 Ministry ofTrade/MEAC2012-2014 Ministry ofTrade,MEAC, allsectoralregulators(for ex, BRBfor financialservices,professionalassociations)Source offinancingTradeMark EastAfrica?WB,TRADECOMWBWB, IFCMonitoring IndicatorsRelevant NTBs in Burundi removed by end of 2013Support the adoption of an EAC legally bindingmechanism for the elimination of NTBs and ensurerapid implementation in Burundi<strong>Enhanced</strong> cooperation between the NTB monitoringcommittee and the EABCRegulatory Assessment mechanism for services inplace by end of 2012Financial Sector Regionalization Strategyimplemented by end of 2014MRA in accounting, architectural (and engineering )services implemented and harmonization of selectedlaws affecting professional and education servicescompleted by end of 2013I.3. Trade financeBanks in Burundi are oftenrequired to post cash ascollateral for trade-relatedtransactions, making itexpensive for companies totrade with overseascounterparts.Burundian banks increased participation in IFC’sGlobal Trade Finance2012-2014 BRB/Ministry of FinanceIFCCost and risks that institutions in Burundi face whentrading with other countries are monitored;Availability/cost of letter of credits and other tradefinance instruments is monitoredII. Supply side constraintsAccess to key backbone services(electricity, transport, finance)Lack of access to finance,especially for small traderMonitor implementation of the AfDBInfrastructure programEncourage provision of technical assistance tobanks to develop products targeted at smallproducers and tradersEnsure that competition law is applied in allbackbone services and financial services sectors2012-2016 Ministry ofTrade towork withall sectorministries incharge ofinfrastructure andAfDB, WBAvailability and prices of electricity monitoredNumber of individuals/ firms with access to creditmonitoredCompetition law applied across all sectors by end of201313 / 153

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