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

The improvement of Burundi’s Doing Business indicators since then is partly attributed to thisrenewed commitment. The effective functioning of the dialogue framework, and its capacity to identifyand address constraints faced by private actors in various sectors must be ensured in the coming years 38 .While the formal sector represented by the new Federal Chamber of Commerce and Industry 39 appears tobe the natural interlocutor for this public-private dialogue, other actors also need to be involved. Inparticular, the Government is aware that it needs to take into account the specific needs of both formaland informal micro, small and medium enterprises in its private sector development strategy, given theirpredominance in the Burundian economy (Republic of Burundi 2011a). In the coming years, the privatesector and industrial development strategy currently finalized by the authorities will provide theframework to step up the support provided to Burundian businesses.2.5 Despite increased external support and capacity building programs in the last years, theweak capacity of Burundi’s government continues to hamper the implementation of itscommitments and obligationsNumerous governmental institutions are involved in the formulation of Burundi’s trade policy.The Ministry of Trade, Industry and Tourism is responsible for the elaboration and implementation ofBurundi’s trade policy. Other major stakeholders include the Ministry of Finance and the OBR, as wellas the recently created Ministry to the Presidency for EAC Affairs, which should see its role increase inthe future given the importance of the EAC in Burundi’s trade strategy. Other institutions such as theMinistries of Agriculture, of Planning and Reconstruction, and of Transport, the State Enterprise Service(SCEP), the Permanent Secretariat for Economic and Social Reforms (SP/REFES), the Federal Chamberof Commerce and the recent Investment Promotion Agency are involved directly or indirectly in policyformulation. A National Steering Committee has been established to facilitate inter-ministerialcoordination on trade issues.Burundi has received increased external support since the early 2000s. In addition to the EnhancedIntegrated Framework, Burundi has received assistance from the World Bank’s Economic ManagementSupport Project (PAGE/EMSP) since 2004 to rationalize customs management, strengthen statisticalcapacities and launch institutional reforms (creation of the OBR and API) 40 . Furthermore, the countrywill benefit in the coming years from a capacity-building program implemented by TradeMark EastAfrica, which focuses on trade policy, trade facilitation and regional integration.Nevertheless, weak institutional capacity continues to undermine Burundi’s ability to formulateand implement trade policy, and to negotiate trade agreements. Lack of adequate human, financialand technical resources in newly created institutions like the Ministry for EAC Affairs, but also in olderones like the Ministry of Trade and Industry, largely prevent them from operating efficiently.Furthermore, poor reliability and availability of data on trade-related issues is a serious obstacle toevidence-based policy making (cf. Annex 2). This capacity deficit, which was identified as a highpriority in the 2004 DTIS, still reduces the country’s ability to abide by its international and regionalcommitments, and reap the full benefits from increased integration. Strengthening capacity andimproving coordination in the public sector are presented as key objectives in the PRSP II, which alsoemphasizes the necessity to implement the National Strategy for the Development of Statistics (2011-2015) adopted in 2010.2.6 Conclusion38 Making the PPD framework fully operational is one objective of the International Finance Corporation’s (IFC)Burundi Investment Climate Reform Program for 2011-2012.39 The Chambre Fédérale de Commerce et d’Industrie du Burundi (CFCIB) was created in 2008 and gathers twelvechambers representing the various sectors of the economy. See www.cfcib.org for more information.40 See www.page.bi for more information.35 / 153