country brief

Burundi

Country Context &
Overview.

Since 2005, Burundi’s annual economic growth rate has averaged 4.5%. As a land locked country, it faces economic challenges including high transport costs, a high trade deficit, a narrow export base. 90% of the population is dependent on subsistence agriculture. Following presidential elections in April 2015, the situation has descended into political insecurity and economic decline in the country.

If the current political situation persists, Burundi may remain fragile in medium term, causing risk to the most vulnerable in society. Allegations of human rights abuses also constrain economic activity. Private sector investment has shrunk and the public sector is constrained by falling domestic revenue as well as reduction in external aid flows from donors.

TMEA in Burundi

TMEA’s programme is well aligned with Burundi’s key priorities while meeting TMEA’s core mission of generating prosperity through trade. TMEA funded a total of 28 projects valued at $ 61.7M in Strategy 1.

Continuity and Innovation in
TMEA Strategy 2:

Whilst improvements have been made in connecting Burundi to the region through the Northern and Central corridors, a supply response is lacking. In Strategy 2, TMEA will adopt a market-integrated approach to economic development to address this constraint. The programme will focus investment in high potential areas and offer a mechanism for supporting vulnerable groups should Burundi’s political situation deteriorate.

Women’s economic empowerment remains a key cross-cutting issue. In line with TMEA’s strategy on fragile and conflict countries, TMEA will deliver programming based on a short term, medium term and long-term approach.

In the short term, the programme will lean towards private sector driven projects. Over the medium term (second and third year of Strategy 2), and if the country’s governance record improves, the programme will re-engage with the Government and diversify its portfolio by investing in trade facilitation measures. A more optimistic programme is envisioned after year 3, where TMEA will upscale projects if the political and security situation allows. Programming is premised on the assumption that Burundi’s political situation will stabilise to allow for continued engagement. TMEA will adapt its programme to the conditions of fragile and conflictaffected states.

OUTCOME 1: REDUCING BARRIERS TO TRADE

Average time to transport goods along
key routes and nodes in the EATN

DETAILS EXPECTED RESULTS BY 2023

Complementary work for Kobero OSBP (including IBM) Improved efficiency of cross-border infrastructure at OSBP Kobero
Gatumba/Kavinvira OSBP (DRC/ UVIRA – including IBM) and the secondary border posts Improved efficiency of cross border infrastructure at Gatumba/Kavinvira and at 7 selected secondary border posts
Upgrade the Port of Rumonge Improved efficiency of port infrastructure at Rumonge.
Safety and navigation on Lake Tanganyika Improved efficiency of port infrastructure at Bujumbura and Rumonge

Improved trading standards

DETAILS EXPECTED RESULTS BY 2023

Elimination of Non-Tariff Barriers Improved effectiveness of mechanisms and institutional coordination to respond to elimination of NTBs affecting exports from and imports to Burundi.

OUTCOME 2: ENHANCING PRIVATE SECTOR MARKETS FOR TRADE

Better private sector-led advocacy for trade in Burundi

DETAILS EXPECTED RESULTS BY 2023

Enhance advocacy for trade led by private sector and civil society Enhanced quality of private sector/ civil society-led policy formulation for trade; Enhanced policy/regulatory environment for women traders and SMEs

Increased efficiency in private sector logistic service

DETAILS EXPECTED RESULTS BY 2023

Improve logistics infrastructure capacity and services in Burundi Enhanced logistics infrastructure capacity in Burundi; Enhanced capacity in provision of trade logistics services in Burundi

Increased export capacity of Burundi businesses

DETAILS EXPECTED RESULTS BY 2023

Export growth for export ready businesses, trade in services,market research and understanding the market dynamics Increased revenues and export in TMEA targeted areas and sectors

Greater inclusion of women and small businesses in trade

DETAILS EXPECTED RESULTS BY 2023

Women export growth for women export ready businesses and cross border trade Increased access to market and trading information by women traders

Intermediate Impact

economic growth

$ 1.2B

net added to total trade (2.4% increase above trend)

Exports from EAC to the rest of the world

$ 0.4B

net added to exports (4.3% increase above trend)

Intra EAC exports (US$ billion)

$ 0.4B

net added to exports (4.3% increase above trend)

Increased Physical Access to Markets

Where We Work Results To Date
Infrastructure development at Kobero on the border with Tanzania to support physical access to market
  • OSBP completed and handed over in July 2015
  • A 10% reduction in cross border clearance time already realized.

Enhanced Trade Environment

Where We Work Results To Date
Set up and operationalise the Burundi Revenue Authority (OBR) to improve government revenue collection.
  • Total government revenue increased to BIF 600 billion in 2015, from BIF 312.2 billion in 2009
  • Improved customs policies and processes leading to a reduction in customs clearance times from 7 to 3 days
Equipping the Burundi Bureau of Standards Increased number of product tests that can be performed from 3 to 47. Facilitate Bureau of Standards staff certification in ISO QMS 9001 and 22000

Improved Business Competiveness

Where We Work Results To Date
Give a voice to the private sector to influence policy Removal of Tanzanian transit levies for 20ft and 40ft containers, as well as a reduction of its overall fee for Burundi trucks in transit by 70% (from $500 to $152 per truck

Intermediate Impact

economic growth

$ 1.2B

net added to total trade (2.4% increase above trend)

Exports from EAC to the rest of the world

$ 0.4B

net added to exports (4.3% increase above trend)

Intra EAC exports (US$ billion)

$ 0.4B

net added to exports (4.3% increase above trend)

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