Figure 5.7: Burundi Coffee Exports, 1980 – 2008454035302520151050Exports in '000 tonnes198019821984198619881990199219941996199820002002200420062008Figure 5.8: Deliveries of Coffee to Washing Stations,2009 and 2010CoffeeTeaSource: FAOSTATSource: Own estimateFigure 5.9: Distribution of number of producers perwashing stationNumber of washing stations3025201510500250500750100012501500175020002250250027503000No. of producersFigure 5.10: Distribution of average quantityproduced per farmer, 2010No. of farmers201510501030507090110130Average quantity (tons)150Source: coffee processorsEnabling small scale producers to respond to globalization is important for inclusive growth anddevelopment in Burundi. Both the public and private sectors have long acknowledged the challengesfaced by small scale producers. In other countries some innovative solutions have been designed buthave met with varying levels of success. These have included among others, special postal services andexpress services tailored to small scale producers in South America. Brazil, for example, hassuccessfully implemented innovative trade facilitation policies for low-valued exports based on postalservices. The policies have two dimensions: the simplification of export procedures, and the use of thepostal network to minimize logistics costs and enhance the viability of the export products. As such,these policies help overcome two major hurdles to exportation faced by many developing countries:overly complicated and costly export formalities on the one hand, and lack of access to an affordable96 / 153
logistics services on the other. Typically, some of the greatest constraints are at the local level, and howflows cascade from local to international logistics chains.6. Regional and international connectivity 94Regional transport corridors are at the heart of regional integration in East Africa, as they areacross most of Africa given the large number of landlocked countries. The corridors are necessaryfor regional integration to achieve maximum potential, to expand and to integrate markets, exploiteconomies of scale, and attract foreign direct investment. The development of regional markets, in turn,creates interdependencies that increase the demand for infrastructure. Traded goods flow through roads,railways, inland waterways, ports and airports, as do people seeking to take advantage of attractiveservices or job opportunities in other nations. Therefore, an efficient and integrated transport systemfacilitates trade and factor mobility. It is connective infrastructure that can effectively reduce theeconomic distance between locations for merchandise trade (World Bank 2009). By enhancingconnectivity, regional infrastructure (especially in the form of transport and communication corridors)can facilitate the exploitation of economies of scale and scope, make possible greater specialization inproduction, and allow for more efficient division of labor. The most important benefits of regionalinfrastructure derive from network externalities.Infrastructure development that impacts Burundi’s regional and global connectivity has largelybeen designed around trade corridors. Burundi has access to the sea through two main corridors,namely the Northern Corridor, connecting to the Port of Mombasa, and the Central Corridor, connectingto the Port of Dar es Salaam. Due to its shorter length, the dominant trade route has traditionally been theCentral Corridor, which accounts for more than 80% of import and export volumes (Figure 5.11).250,000200,000Figure 5.11: <strong>Volume</strong> of Burundi cargo handled throughDar es Salaam and MombasaDarMombasa<strong>Volume</strong> (tons)150,000100,00050,00001992 1994 1996 1998 2000 2002 2004 2006 2008 2010Source: Kenya and Tanzania Ports AuhtoritiesThe volume of Burundi traffic passing through the Northern Corridor and using the port ofMombasa has always been small. Less than 7,000 tons of Burundi’s traffic passed through this port in2010 (Figure 5.11). It is clear from the above figure that when the Central Corridor performs well thevolumes on the Northern Corridor decline, and vice versa. With the exception of tea (normally less than10,000 t/year), which is still auctioned in Mombasa, a large proportion of the cargo flow using theNorthern Corridor is comprised of goods originating from the EAC market. However, the fact that94 See Annex 6 (<strong>Volume</strong> II) for a map of the main transportation routes in East Africa.97 / 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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(% GDP)50%40%30%20%10%Figure 1.2: e
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Burundi’s very narrow export base
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elatively well diversified - in 200
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ExportsImports(%)Share2001/03Share2
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Table 1.4 : Burundi’s trade in se
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scope for both automatic and discre
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exports. Burundi stands out as a he
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this, the Government has elaborated
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4,000Figure 1.11a: cost to export (
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The improvement of Burundi’s Doin
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Mainstreaming of trade into nationa
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constraints are required to impleme
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CHAPTER 2 - Regional integration: o
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4.3 percent to SSA as a whole. Most
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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