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

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