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Burundi’s informal CBT flows with neighboring countries are likely to be considerable compared toformal flows, which highlights the necessity to collect reliable and frequent data on Burundi’s informalCBT trade.While there is still very limited information on informal cross-border exchanges in East Africa, theUgandan and Rwandan Bureaus of Statistics have conducted surveys on informal CBT. Moreover,Rwanda is currently preparing a strategy on this issue. The government of Burundi could emulate theseinitiatives to assess the magnitude and impact of this trade, and design interventions accordingly.1.3. Trade in services and FDIBurundi’s services trade has increased during the last decade 14 . Figure 1.8a suggests that the share ofservices in Burundi’s trade has significantly increased during the last ten years - between 2001 and 2010,services’ share in total trade went from 12 to 51% for exports, and from 22 to 29% for imports. Thisdynamic echoes the growing share of the tertiary sector in the domestic economy (about one third ofGDP in 2010, two thirds of which corresponds to non-market services) 15 . The growth of services traderelative to GDP has been much faster in Burundi than in other EAC countries, particularly for imports.(% GDP)20%15%10%5%0%Figure 1.8a: evolution of services tradeFigure 1.8b: exports of commercial vs.government services (2010)(% GDP)12%10%8%6%4%2%0%Burundi Kenya Rwanda Tanzania UgandaServices exportsSource: UnctadStat; WDIServices importsGovernment servicesSource: UnctadStat; WDICommercial servicesThe growth of services trade relative to GDP was mainly driven by exports of “governmentservices”, which currently dominate Burundi’s services exports (Figure 1.8b). This category includestransactions in both goods and services by international organizations, embassies, or military units andtheir staff in the host countries (corresponding to mode 2 for services) 16 . In Burundi’s case, this seems toreflect the increased presence of donors since 2005. The rest of services exports (i.e. “commercialservices”) is negligible and consists of travel services (i.e. the purchase of goods and services in Burundiby non-residents), transport, financial and other business services. Commercial service export earningsfluctuate between 2 and 7 USD millions per year. On the other hand, services imports have amounted toan average of USD 200 million between 2008 and 2010 (almost five times the annual average registeredbetween 2001 and 2003). This is due to the rapid increase of transport and travel services imports, whichtogether represent between 80 and 90% of Burundi’s total services imports of services.14 The limited availability and reliability of cross-country data on services trade implies that one can only estimateits volume and characteristics. This caveat should be kept in mind when reading this section. On services inBurundi, see also Chapter 6.15 Source: BRB 2010 annual <strong>report</strong> (www.brb.bi/se/raportanu10.html).16 See the IMF’s Balance of Payment Manual, paragraph 266 (www.imf.org/external/np/sta/bop/bopman.pdf).24 / 153
Table 1.4 : Burundi’s trade in services, 2010USD millions (and % of total) Exports ImportsCommercial services 7.3 (9%) 156.4 (93%)Transport 0.7 (1%) 110.9 (66%)Travel 1.8 (2%) 19.8 (12%)Communications .. ..Construction .. ..Insurance 1 (1%) 2.6 (1.5%)Financial services 0.6 (1%) 1.4 (0.8%)Computer and information .. ..Royalties and licence fees .. ..Other business services 3.2 (4%) 21.7 (12.9%)Personal, cultural and recreational services .. ..Government services 72.2 (91%) 11.9 (7%)Total 79.5 (100%) 168.2 (100%)Commercial services CAGR (2001-2010) 15.2% 17 19.5%Source: authors' calculations based on UnctadStat dataForeign direct investments (FDI) to Burundi have started to pick up albeit from extremely lowlevels. FDI inflows per capita are still lower in Burundi than in all other EAC countries, but they haveincreased since 2008 (figure 1.9). On average, FDI have represented 1% of GDP between 2008 and2010, compared to virtually nothing between 2001 and 2007. The relatively high volumes in 2008 (USD14 million), 2009 (USD 10 million) and 2010 (USD 14 million) were principally due to investments inthe telecommunications and banking sectors. According to the UNCTAD, the estimated stock of FDIreached USD 86 million and 6% of GDP in 2010. Such figures are comparable to the FDI estimates forKenya (7%) and Rwanda (8%). But Burundi’s capacity to attract FDI is still undermined by numerousfactors, including its poor business environment, high trade costs and small market size 18 .25Figure 1.9: FDI inflow per capita in the EAC(current USD)2015105BurundiKenyaRwandaTanzaniaUganda02000 2002 2004 2006 2008 2010Source: UnctadStatThe Burundian Investment Promotion Authority (API) has played an important role in attractinginvestment projects in the past few years. The increase in FDI seems to be partly explained by the17 Burundi’s commercial services exports have been highly volatile in recent years, and the CAGR is only 0.7% if2009 is the end year considered.18 See UNCTAD (2010) for a detailed presentation of the nature, impact and constraints to FDI in Burundi.25 / 153
Page 1 and 2: Republic of Burundi / Enhanced Inte
Page 3 and 4: Currency equivalent(Exchange rate a
Page 5 and 6: Executive summaryThe Government of
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Figure 4.1: Coverage and frequency
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Some of the most heavily regulated
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2.2 Severity: the impact of NTMsWhi
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In spite of efforts to improve the
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standards, which kindly share the m
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According to a testimony gathered i
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public sectors would have more clou
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CHAPTER 5 - Strengthening Trade Fac
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ii. designing a program of action o
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3. Size of ShipmentsThe small avera
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makes it possible for the coffee to
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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
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