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

constraints are required to implement a comprehensive investment climate reform program that willsuccessfully attract domestic and foreign investors.Section 7: Capacity building in the Ministry of Trade and IndustryRather limited progress has been made in terms of enhancing the capacity of the Ministry ofTrade to coordinate, implement and monitor trade policy reforms. While the Ministry of Trade hasbeen equipped with computers and management has participated in several short term WTO trainingcourses, both the Ministry of Trade and the new Ministry of EAC continue to struggle with limitedcapacity and scarce resources. In addition to this, their respective activities remain largelyuncoordinated. The development of an adequate capacity building program for relevant actors and thecreation of an effective coordination mechanisms between the ministries and agencies involved in tradepolicy making, as well as with stakeholders in the private sector, remains a priority for Burundi.Section 8, 9 and 10: Sectors with high potential: coffee, tea and cottonSome progress has been made with reforms in the coffee and the tea sectors. For example, newproductive investments in the coffee and tea sectors have contributed to the rehabilitation of productivecapacities in these sectors, an action plan for state divestiture in the coffee sector has been adopted in2009, the privatization of coffee washing stations has started, and a new Investment Code was enacted in2008.Given its weight in Burundi’s economy and exports, the reform of the coffee sector is a priority forthe Government. A 2005 decree recognized the liberty of establishment and activity at all stages ofcoffee production, transformation, commercialization and export to private investors, both domestic andforeign. Subsequently, a strategy for State divestiture in the coffee sector has been adopted in 2009, andan institutional reform to increase the role of the private sector in the sector was carried out. Theprivatization of public coffee processing facilities was initiated with limited success in 2009, notably dueto limited investor interest and political-economy resistances. A second phase was launched in early2012, and the reform is expected to accelerate in the coming years 41 .The slow pace of reforms in thesetraditional export sectors, and the limited results in terms of production and exports so far, show thatmuch more needs to be done to encourage the participation of the private sector in these sectors, increasethe quantity and quality of products (notably to strengthen presence on specialty coffee markets), andaddress logistical concerns.Section 11: Implementation of WTO agreementsVery limited progress has been made regarding the implementation of Burundi’s tradeagreements. With the exception of some training courses, none of the actions listed in this section havebeen addressed. The implementation of Burundi’s trade agreements remains a high priority issue thatneeds to be addressed as part of the trade mainstreaming exercise.According to the Government of Burundi, the main factors responsible for inadequate results areinternal coordination and technical capacity problems. The technical capacity of the Ministry ofCommerce and Industry, responsible for overseeing the implementation of the Action Matrix, isparticularly problematic. Overemphasis on process to the detriment of trade outcomes were additionalfactors mentioned by local stakeholders. Moreover, the fact that several key stakeholders were not awareof the DTIS or its findings is problematic. Finally, the first Action Matrix was too long withoverambitious timeframe for the realization of objectives, which made implementation difficult given thelimited capacities.41 See Chapter 3 and Annex 3 (Volume II) on the coffee sector and its reform.39 / 153