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

More documents

Recommendations

Info

of expertise and encouraging cooperation at the technical level. Informal contacts at the technical levelhave proved, in other regional settings, a powerful vehicle for substantial regional cooperation and thereduction of trade and regulatory frictions before they ratchet up to political level. In particular, strongeragencies in the larger/more advanced countries in the region could provide assistance and guidance toweaker ones, such as Burundi’s.88 / 153
CHAPTER 5 – Strengthening Trade Facilitation and Logistics in Burundi1. IntroductionBurundi, like other landlocked countries, faces a disadvantage to access overseas markets.Distances to regional seaports in Tanzania and Kenya are long and the country has to rely onneighboring countries for reliable transit routes for its trade traffic. Logistics costs are a significantcomponent of most imported products and can be a significant component of the free on board (FOB)price for exports. Virtually all goods, manufactured products and basic foodstuffs, such as sugar, rice andflour are imported. Industrial production in the country is limited to the production of beer, smallquantities of cement as well as packaging and distribution of imported products. Even for the productionbeer, the main industry of the country, 90% of inputs are imported with only land, water and labor beingthe important local inputs.Bujumbura plays a key role in Burundi’s logistical system. Any national logistics system has twodistinct, but complementary, components: a domestic system that handles local flows of goods betweencenters of production and processing, and an international system that links the country to regional andinternational markets. In Burundi, the fulcrum of the two systems is the capital, Bujumbura, whichserves as the country’s domestic logistics hub and also as the preeminent international trade gateway.Bujumbura is connected to all parts of the country by a national road network, while connectivity toregional and global markets is by a multimodal system comprised of road, water and air transport. It isalso the main center for customs and border management, where cargo is processed, consolidated ordeconsolidated and transferred between the domestic and international systems. As such, Bujumbura hasa concentration of services providers in logistics, trucking, inland water transport, clearing andforwarding, warehousing, and banking among others.An important goal of trade facilitation in Burundi is to reduce logistics costs, which are highcompared to neighboring countries. These high costs increase the costs of Burundi’s imports andundermine the competitiveness of its exports. Burundi imports cover a wide range of commodities, suchas petroleum products, building materials (e.g. cement, metal products, sheet, pipe, hardware, millwork),chemicals used in cleaning, food items, transport equipment (e.g. vehicles, tires, spare parts), andcommunication equipment (e.g. computers, antennas, etc.). Twelve products account for almost threequartersof the import basket in terms of tonnage. Petroleum products alone are more than a fifth of thetonnage transported. Exported products, mainly coffee, tea, hides, beer and soap need to reach foreignmarkets smoothly and without additional costs detrimental to their competitiveness, while satisfying thequality requirements of foreign buyers. Diversification of exports at the same time is important tobroaden the base of the economy, stabilize revenues and create jobs. It is therefore imperative thatmeasures be taken to reduce logistics costs, as it is to address other constraints that are faced in theeconomy to create local value addition (energy, agricultural inputs, etc.). The main import and exportvolumes are shown in Table 5.1a and 5.1b, respectively.89 / 153
Page 1 and 2:
Republic of Burundi / Enhanced Inte
Page 3 and 4:
Currency equivalent(Exchange rate a
Page 5 and 6:
Executive summaryThe Government of
Page 7 and 8:
Dar es Salaam (Tanzania) and Mombas
Page 9 and 10:
II.3. Unorganized (agricultural) as
Page 11 and 12:
making. Efforts to improve official
Page 13 and 14:
Identified constraintregulatory fra
Page 15 and 16:
Identified constraintProposed Actio
Page 17 and 18:
(% GDP)50%40%30%20%10%Figure 1.2: e
Page 19 and 20:
Burundi’s very narrow export base
Page 21 and 22:
elatively well diversified - in 200
Page 23 and 24:
ExportsImports(%)Share2001/03Share2
Page 25 and 26:
Table 1.4 : Burundi’s trade in se
Page 27 and 28:
scope for both automatic and discre
Page 29 and 30:
exports. Burundi stands out as a he
Page 31 and 32:
this, the Government has elaborated
Page 33 and 34:
4,000Figure 1.11a: cost to export (
Page 35 and 36:
The improvement of Burundi’s Doin
Page 37 and 38: Mainstreaming of trade into nationa
Page 39 and 40: constraints are required to impleme
Page 41 and 42: CHAPTER 2 - Regional integration: o
Page 43 and 44: 4.3 percent to SSA as a whole. Most
Page 45 and 46: likely to facilitate deeper integra
Page 47 and 48: collection remain destination-based
Page 49 and 50: To-date, the approach to eliminateN
Page 51 and 52: Figure 2.5: Improvements in doing b
Page 53 and 54: Public awareness and stakeholders s
Page 55 and 56: CHAPTER 3 - Export diversificationT
Page 57 and 58: products, Figure 3.3 shows that Bur
Page 59 and 60: Second, measures that encourage the
Page 61 and 62: Figure 3.5: Burundian coffee value
Page 63 and 64: ii. Addressing supply-side constrai
Page 65 and 66: sales of specialty coffee by cooper
Page 67 and 68: long distances, given the high cost
Page 69 and 70: The over exploitation of land is of
Page 71 and 72: logistics chain. Other types of fac
Page 73 and 74: CHAPTER 4 - Non-tariff Measures: Th
Page 75 and 76: Figure 4.1: Coverage and frequency
Page 77 and 78: Some of the most heavily regulated
Page 79 and 80: 2.2 Severity: the impact of NTMsWhi
Page 81 and 82: In spite of efforts to improve the
Page 83 and 84: standards, which kindly share the m
Page 85 and 86: According to a testimony gathered i
Page 87: public sectors would have more clou
Page 91 and 92: ii. designing a program of action o
Page 93 and 94: 3. Size of ShipmentsThe small avera
Page 95 and 96: makes it possible for the coffee to
Page 97 and 98: logistics services on the other. Ty
Page 99 and 100: Table 5.3: Characteristics of Clear
Page 101 and 102: The Central Corridor is potentially
Page 103 and 104: Air connectivity, while limited in
Page 105 and 106: Kigoma and Bujumbura lake ports. Th
Page 107 and 108: In its Strategic Plan 2011-2015, th
Page 109 and 110: increase reliability would therefor
Page 111 and 112: 8. RecommendationsThe foregoing sho
Page 113 and 114: Cooperation at the regional level a
Page 115 and 116: (BIF billion) (%)1. Primary sector
Page 117 and 118: A striking feature of Burundi’s s
Page 119 and 120: Business servicesNumber of accounta
Page 121 and 122: At the same time there exist severa
Page 123 and 124: Under the capacity building compone
Page 125 and 126: MadagascarCameroonSenegalKenyaMalaw
Page 127 and 128: Explaining the Segmentation of Mark
Page 129 and 130: . Adequate regulations that ensure
Page 131 and 132: The pace of integration is largely
Page 133 and 134: take time to overcome, are likely t
Page 135 and 136: and to domestic travel spending, as
Page 137 and 138: the attractiveness of the sector fo
Page 139 and 140:
4. The challenges facing tourism in
Page 141 and 142:
supply, hospitals), and in large-sc
Page 143 and 144:
durable improvements in terms of st
Page 145 and 146:
- the introduction of a single EAC
Page 147 and 148:
Box 7.4: Examples of regional conse
Page 149 and 150:
cultural and social sustainability
Page 151 and 152:
ICG. 2012. Burundi: A Deepening Cor
Page 153:
World Bank. 2010c. Reform and Regio
show all

(DTIS) Update, Volume 1 â Main report - Enhanced Integrated ...

Create successful ePaper yourself

Delete template?

Save as template?

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