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

for example by ensuring the implementation of the EAC and COMESA simplified trade regimes, whichcould facilitate the formalization of informal trade. In addition, a Traders Charter aimed at improvingtreatment of small traders and streamlining procedures at the border could increase cross-border flowsin the region with potentially significant benefits for Burundi (Box 3.6).Conclusions and recommendationsRather than focusing on interventions that target specific products (such as mangos or tomatoes),it appears that the best bet for the authorities is to lift the common constraints that currentlyhamper the participation of horticulture farmers in commercial and trade activities. In fact, easingthese constraints would benefit not only horticulture, but also the main segments of Burundi’s exportagriculture, coffee and tea. Establishing a more supportive business environment for horticulture exportsis therefore the main area where the government should be proactive. In particular, improving theavailability and quality of essential support institutions and services is critical:- business development services, to enhance the knowledge of markets and current demandcharacteristics 80 , and to facilitate the establishment of efficient managerial and operationalframeworks for production and exports processes;- SPS management services, including initiatives to raise awareness on SPS standards and theestablishment of a regulatory and operational framework for SPS compliance;- vocational training, to strengthen human capital in a variety of activities related to theproduction, processing and transport of horticultural products;- extension services, which, as illustrated by the survey described above, are currently lacking andwill be required to increase productivity;- research services, which are currently minimal.The horticulture sector in Burundi would also benefit from more general efforts aiming atimproving the availability and affordability of critical services. For example, financial services areneeded to finance horticulture investments at all levels (production, processing, and marketing). Theavailability of efficient transport and logistics services is crucial for exports (see Chapter 5). Concerningair transport, this will notably require tackling the “chicken and egg” dilemma identified by Clay and coauthors(2007), by which airlines do not make more charters available because shipping volumes arelow, while exporters and suppliers do not increase volumes because air cargo space is limited 81 .Support for making horticulture associations more efficient could be considered. As illustrated bythe survey of farmers in the horticulture sector, coordination among producers is currently limited. Theemergence of more and better-organized producer associations could enable efficiency gains withregards to access to inputs and extension services, or to the transport of products to local markets orshipping points for regional/international markets. This could follow the example of the coffee sector,where producer associations have become increasingly active and the recently established interprofessionalorganization (InterCafé) facilitates coordination along the value chain. The modernizationin 2011 of the legal framework for agricultural cooperatives represents an opportunity to develop suchorganizations and enable them to play a stronger role to diversify and improve the productivity of bothfood and export crops.Some investments in physical infrastructure will also be needed for the sector to develop. Onecritical point is the availability of adequate storage facility (notably cold storage) at key points of the80 See Clay et al. (2007) for a detailed analysis of the different traditional and emerging markets for Burundi’shorticultural products.81 This dilemma is not specific to horticultural exports and also hampers the development of the tourism sector inBurundi (see Chapter 7).70 / 153