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Burundi

Animated-Flag-Burundi.gifThe Hub's accomplishments in Burundi to Date:  

  • To date the Hub has supported 13 firms and associations from Burundi to increase their export competiveness
  • Supported the ratification of SPS Protocol

 

 

The Hub's assistance to Burundi

Burundi adopts draft law for East African Community Protocol on Sanitary and Phytosanitary Measures

On June 22, Burundi’s National Assembly adopted draft law on the ratification of the East African Community Protocol on Sanitary and Phytosanitary (SPS) Measures (EAC SPS Protocol) pursuant to Section 8 of the Treaty Making and Ratification Act, 2012, essentially signaling the country’s approval of EAC SPS Protocol.  This action followed a high-level awareness-raising meeting that the Hub convened in March 2017, in partnership with the Burundi Bureau of Standards and Quality Control. The meeting specifically aimed at raising awareness on EAC SPS Protocol and the need to support and fast track its ratification in the country. 

The protocol harmonizes regional measures that align the EAC Partner States with each other and with global markets, ensuring easier trade. The measures seek to protect human and animal life from risks arising from additives, contaminants, toxins or disease causing organisms in their food. The measures, which also take into account plant life, seek to mitigate damage to a country from the entry, establishment or spread of pests, diseases or disease causing elements. The EAC SPS Protocol is expected to promote trade in food and agricultural commodities and strengthen the application of a harmonized approach for implementation of SPS measures and activities. 

With the Parliaments ratification, the next stage will be to forward the protocol’s instruments of operation to the Ministry responsible for EAC affairs, and then to the EAC Secretariat. Burundi now joins Kenya, Rwanda and Uganda as the EAC Partner States that have ratified the SPS Protocol. 

Improving Burundi’s use of electronic notification systems for trade policy awareness and action

The Hub is supporting Burundi to meet its transparency obligations to World Trade Organization (WTO) Agreements relating to SPS and technical barriers to trade (TBTs). In February 2017, the Hub trained Burundi officials on ePing, an electronic system that allows users to receive timely alerts and track and comment on measures being introduced by WTO members. It helps WTO members address potential trade problems at an early stage.

Strengthening trade and regional integration through advocacy and dialogue

Since August 2016, the Hub has reviewed 63 draft laws, regulations, and other administrative measures for compliance with the EAC Common Market Protocol. For non-compliant measures, the Hub has developed and disseminated reform memoranda to affected parties.

For example, the Hub conducted impact assessments on the following Burundi policies and recommended removal:

  • Article 16 (2) of the law on organization of privatization of public companies states that in privatization of enterprises, a percentage of their ownership can be reserved for Burundians or companies with major shares held by Burundians. (Restricting local purchase by non-residents of states’ shares in the privatization of coffee sector in Burundi)
  • The Hub recommended removing the clause that grants preferences to nationals. This will allow foreigners to bring in capital for increased coffee production, foreign exchange earnings and Burundian employment.
  • Ban on passengers transport to and from Rwanda
  • The impact assessment showed that the free movement of services, as per Burundi’s commitment under the EAC CMP, supports the cross-border transport sector in Burundi to develop and expand.
  • Ban on export of groceries and foodstuff from Burundi to Rwanda
  • This impact assessment showed how the measure has affected the price of different products in the market and how the measure led to the indebtedness of small producers who have contracted loans to finance their production.

Supporting regional grain trade

At the end of April 2017, the East African Standards Committee approved nine revised East

African Community (EAC) staple foods standards. Burundian stakeholders have taken an active role in the revision process. The Hub has been supporting the public review and drafting process for the harmonized standards through a grant to the Eastern Africa Grain Council (EAGC). The standards for dry maize, wheat grain, dry beans, milled rice, soybeans, maize flour, wheat flour, sorghum flour and millet flour will now move forward for possible EAC adoption. Currently, the inconsistent application of staple foods standards impedes cross-border transactions and diminishes the need for farmers to invest in quality production. The gazettement of these standards will enhance EAC regional cross-border trade.

The Government of Burundi and the Burundian private sector have also taken an active role in the Hub and EAGC supported business-to-business (B2B) regional grain trade forums. Five Burundians participated in both the Lusaka, Zambia and Addis Ababa, Ethiopia events. The B2B events linked grain sellers and buyers in support of regional grain trade and the movement of surplus grain to areas of deficit.

Assessing Burundi’s investment climate -- Investment Policy Diagnostic Validation Workshop, April 2017

The Hub supported a validation workshop on an assessment of Burundi's investment policy in regards to investment entry, protection and exit. The report informs the best use of technical assistance for an improved Burundian investment climate.

Facilitating investment in Burundi

The Hub is helping Burundi Tea, a tea processing company with 10,000 farmers, to access funding for expansion into new markets and to improve its out grower model and tea quality. Burundi Tea currently sells their tea to international markets through the Mombasa tea auction. The proposed $4.6 million mixed equity and deb deal is at an early stage. The Hub is directly supporting the fundraising process with impact investors as opposed to return-focused private equity funds because of the high-risk investment climate in Burundi. The Hub expects to sign a term sheet within the next several months.

The Hub is building the capacity of Burundi’s investment promotion agency to secure more potential investments through project profiling. For Burundi, the capacity building training has and increased focus on risk mitigation strategies for investors.

Related Blogs and Resources

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Published on February 13, 2019
Fifty three offices established by private equity and venture capital companies in the East African Community (EAC) countries which comprises a cumulative minimum value of at least $5.8 billion USD under management for investments throughout the world including in East Africa.  This is according to “The Map of Private Equity Firms” based in Sub-Saharan Africa by Africa’s leading private company research firm, Asoko Insight from December 2018. Read more. Source | The Exchange
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Improving Early Stage Investor Engagement in East Africa

Published on February 13, 2019
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PSF urges regional MPs to back business friendly policies

Published on February 05, 2019
Rwanda’s Private Sector Federation (PSF) has challenged regional legislators to increase their advocacy for policies designated to eliminate trade barriers, which continue to undermine regional integration. Officials from the umbrella of Rwandan business community were yesterday meeting members of the East African Legislative Assembly (EALA) who are undertaking an outreach programme in partner states. Read more. Source | New Times
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Our new models will help regional businesses grow their networks

Published on January 30, 2019
The chief executive of the East African Business Council Peter Mathuki spoke with Patty Magubira on the region’s economic prospects for 2019. With regards to challenges the East Africa Community faced in 2018, he outlined that most of them were  compounded by protectionist approaches that hindered trade within the East African Community. "EAC intra-trade stood at only 20 per cent of the total, compared with 46 per cent in the Southern African Development Community, and 67 per cent in the European Union. We have partly implemented the Common Market Protocol, which helped the EAC become the fastest growing regional economic bloc," he said. Read more. Source | East African
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Burundi Adopts Draft Law for Ratification of EAC SPS Protocol

Published on July 03, 2017
On June 22, Burundi’s National Assembly adopted draft law on the ratification of the East African Community Protocol on Sanitary and Phytosanitary (SPS) Measures (EAC SPS Protocol) pursuant to Section 8 of the Treaty Making and Ratification Act, 2012, essentially signaling the country’s approval of EAC SPS Protocol.  This follows a high-level awareness raising meeting convened by the Hub in March 2017, in partnership with the Burundi Bureau of Standards and Quality Control (BBN). The meeting specifically aimed at raising awareness on EAC SPS Protocol and the need to support and fast track its ratification in the country. (Please also refer to this link: http://www.assemblee.bi/Analyse-et-adoption-du-Projet-de,1525 – note that it is in French) The protocol harmonizes regional measures that align the EAC Partner States with each other and with global markets, ensuring easier trade. The measures seek to protect human and animal life from risks arising from additives, contaminants, toxins or disease causing organisms in their food. The measures, which also take into account plant life, seek to mitigate damage to a country from the entry, establishment or spread of pests, diseases or disease causing elements. The EAC SPS Protocol is expected to promote trade in food and agricultural commodities and strengthen the application of a harmonized approach for implementation of SPS measures and activities.  With the Parliaments ratification, the next stage will be to forward the protocol’s instruments of operation to the Ministry responsible for EAC affairs, and then to the EAC Secretariat. Burundi now joins Kenya, Rwanda and Uganda as the EAC Partner States that have ratified the SPS Protocol. Next steps for the Hub include supporting Tanzania to ratify the EAC Protocol on SPS.  
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Burundi Takes a Step Towards Ratification of the EAC SPS Protocol

Published on March 22, 2017
Burundi Members of Parliament agreed to push for ratification of the East African Community (EAC) Sanitary and Phytosanitary (SPS) Protocol following a Hub-supported awareness workshop. Burundi and Tanzania are the only remaining EAC countries that have yet to ratify the Protocol. Ratification of the EAC SPS Protocol by all the EAC partner states will pave the way for domestication of the Protocol, including the drafting of harmonized regulations based on the EAC SPS Bill covering plant health, animal health and food safety. Harmonized SPS regulations among the EAC Partner States will contribute to greater intra-EAC and international trade. The Hub conducted the SPS Protocol awareness-raising workshop in collaboration with the Burundi Bureau of Standards and Quality Control. High-ranking government officials, including two Cabinet Ministers, four members of Parliament (including the President of the Committee on agriculture and livestock) and Senate, representatives of competent authorities responsible for plant health, animal health and food safety, private sector and the academia attended. Workshop facilitators outlined what participants have to gain by ratifying the SPS Protocol, including: Better food safety measures Improved plant protection and animal health. Enhanced risk mitigation arising from pest, pests, diseases and food safety concerns e.g. aflatoxins Improved competitiveness of the produce originating from the EAC region to external markets, such as the European Union Stronger coordination of institutional frameworks for enforcing of SPS measures within the EAC region.
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Forty-Six Postharvest Technology Innovators from East Africa to Compete for USD 30,000 in Seed Capital

Published on March 22, 2017
Panelists for the East Africa Postharvest Technologies Competition 2017 have selected 46 innovators, from over 200 applicants, to undergo accelerator training on how to package and pitch their technologies to investors. The training will help the innovators expand their opportunities for scaling up and disseminating their technologies to a wider market. The training will take place in Tanzania on April 4-6, 2017. Applicants are competing for the best technological solutions to address post-harvest losses. They hail from Kenya, Uganda, Tanzania, Rwanda and Burundi. The Inter Region Economic Network (IREN) is conducting the inaugural East Africa Postharvest Technologies Competition 2017 through a grant from the Hub. The objective is to spur the development of innovative technologies that reduce food loss and waste in Africa.
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EAC Common Market Implementation Update - Kenya, June 2016

Published on July 01, 2016
The monthly 'Common Market Implementation Update' tracks legal and regulatory developments that have a bearing on Kenya’s compliance with commitments made towards the East African Community' Common Market Protocol (CMP). This issue covers key milestones taken by the Republic of Kenya to advance implementation of the Protocol. On June 29 2016, Kenya approved the ratification of the EAC Protocol on Sanitary and Phytosanitary Measures. Download the report.
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