All the farmers declared to bear the cost of bringing their products to the market, although 42% of themresponded that buyers also contribute to this cost. Bicycles is the most frequently cited mode of transportused, followed by trucks. Most respondents <strong>report</strong>ed costs between FBU 1,000 and 5,000 ($ 0.7 and 3.7)to transport products to the market. Only around 20% of respondents share transport costs with otherfarmers. Where they exist, producer associations are still at an early stage and are not involved in thetransport of goods to markets.All surveyed farmers use asphalt roads to get to markets, and a majority also use foot/bicycle paths anddirt roads. These roads are deemed to be in fair to good condition, indicating that the availability andquality of transport axis may not be a major constraint. Finally, while 70% of respondents own one orseveral functioning bicycles, none possess motor vehicles and only two farmers <strong>report</strong>ed that they ownanimal-drawn carts. Around two thirds of respondents also <strong>report</strong> that they hire means of transport,mostly to intermediaries. Rental rates are relatively low for bicycles, buses or taxi are used, but go up toFBU 50,000 ($37) for the rental of motor vehicles.Marketing:For all respondents, the main factor determining the frequency of selling is the readiness of products.Second order factors include high prices are high (44% of respondents), and the availability of transportservices (33%). The survey also indicates that most farmers (70%) do not actively search for buyers fortheir products, but rely on established relationships instead. Other common modalities include the use ofmobile phones or word of mouth. Moreover, none of the surveyed farmers <strong>report</strong>ed had a sales contractwith buyers.The majority of the surveyed farmers (75%) seek information on the prices offered at the market prior toselling, especially those who own mobile phones. In addition to phones, most respondents also obtaininformation on prices by word of mouth and through other farmers. Although information on pricesappears to be widely shared at the village level, the survey shows that a minority of farmers coordinatewith others on which market to target, what quantity to sell and when. This suggests that coordinationamong local producer remains limited, which reduces the possibility to share the cost of bringingproducts to the market or increase the bargaining power with buyers.Source: Consutlant interviews in Rumonge, Mutimbuzi, Rugombo, Matongo and Kaynaza, 2011The results of the survey confirm that building a favorable environment for the production andmarketing of horticultural products is a high priority. Overall, the main obstacles faced by thesurveyed farmers to increase their agricultural production and bring it to the market are: (i) the difficultaccess to agricultural inputs, (ii) the prevalence of crop pests and diseases, (iii) the limited access tocredit, (iv) the lack of output market access, (v) the absence of storage facilities and (vi) the lack ofmeans of transport. These conclusions from the survey largely echo the constraints to the development ofthe horticulture sector listed in the 2008 National Agricultural Strategy adopted by the government ofBurundi, namely:- Limited knowledge of the rapidly evolving global markets for food products, especially inemerging markets, leading to suboptimal strategic positioning of products;- insufficient knowledge of international norms and standards, particularly phytosanitarystandards;- the lack of storage facilities (especially cold chains for perishable products ) and availability ofair transport;- producers who are not well organized; and- the lack of extension services and training for producers.68 / 153
The over exploitation of land is often mentioned as a supply-side constraint in Burundi. Theoverexploitation of land has contributed to land degradation and soil erosion. The use of land is alreadyat its limits (using traditional technology), and the average size of a plot is only 0.5 hectare. The soil ischaracterized by low fertility, about a third of the soil is acidic, and the hilly terrain is prone to soilerosion. The irrigation potential is mostly underexploited, with less than 10 percent of the potentiallyirrigable area under irrigation. As a consequence, Burundi’s food supply is not meeting the increasingdemand, leading to food insecurity and the need to rely on food aid (World Bank 2010).(iii) Small, informal tradersFinally, as with horticulture production, a large part of (intra-regional) trade in horticultureproducts remains informal. Also, most small traders are women (see Box 3.5). Small traders facesignificant barriers when crossing the borders. In addition to numerous non-transparent andunpredictable administrative barriers they need to pay bribes and are exposed to harassment. Measuresthat address such issues and facilitate the progressive formalization of informal flows are urgentlyneeded.Box 3.5: Informal cross-border trade in the Great Lakes regionAs explained in Box 1.1, the available evidence suggests that informal cross-border trade (CBT)between countries of the EAC, as well as with other neighboring economies such as eastern DRC, issignificant. This trade plays an important role for both the individuals and the countries concerned. Inparticular, CBT in agricultural products has been highlighted for its capacity to improve food securityby linking food surplus areas to food deficit areas, hence making food products more widely availableat lower prices.A survey carried out in 2010 by the World Bank at four key border crossings between the RDC andneighboring countries (including with Burundi at Uvira-Bujumbura) sheds some lights on keycharacteristics of this trade. The majority of this trade concerned small quantities of foodstuffs, such ascereals, pulses, vegetables and fruits. It has a strong relevance for poverty reduction, as mostrespondents declared that it was their main source of income. Moreover, there is an important genderdimension to the issue of small scale CBT, as most of the traders concerned are women (85% ofrespondents were women, while 82% of the officials at the borders were men).This study shows that CBT between the DRC, Burundi, Rwanda and Uganda is mainly an informal,although not illegal, activity. Most women engaged in this trade cross at formal border crossing pointsand are willing to pay appropriate duties. They wish to be treated as business people, but complain thatthey are often looked down upon and considered as mere “smugglers” by officials. At present, variouscontrols are imposed in a non-transparent and unpredictable manner by the numerous administrativeauthorities present at the borders. Moreover, CBT is largely undermined by quasi-systematic unofficialpayments and bribes, as well as by high levels of harassment and violence. As a result of theseobstacles, substantial differences in the prices of basic food products remain between markets onopposite sides of borders.To realize more fully the potential for CBT in the region, action on the informal trade agenda isrequired. One immediate priority is to recognize the important role played by small cross-bordertraders, and to improve conditions at the borders (including gender-wise), notably by simplifying andenhancing the transparency of administrative procedures. A strategy could also be established toprogressively integrate small traders in the formal economy, starting by promoting their organization inassociations to represent and defend their interests. Gradual formalization could also help lifting othermajor constraints faced by small traders, such as access to finance.As mentioned in Box 1.1, one useful progress would be to start collecting detailed data and informationon CBT between Burundi and its neighbors. Strengthening regional cooperation on CBT is also critical,69 / 153
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Republic of Burundi / Enhanced Inte
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Currency equivalent(Exchange rate a
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Executive summaryThe Government of
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Dar es Salaam (Tanzania) and Mombas
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II.3. Unorganized (agricultural) as
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making. Efforts to improve official
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Identified constraintregulatory fra
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Identified constraintProposed Actio
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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