Burundi - East Africa Trade and Investment Hub

The 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

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

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.

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.

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.

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.

New on our Knowledge Center: A World Bank Group Flagship Report- Global Economic Prospects 2016

Published on May 05, 2016

The January 2016 edition of Global Economic Prospects discusses current global and regional economic developments and prospects, analyzing key challenges and opportunities confronting developing countries. It also highlights spillovers from large emerging markets and macroeconomic vulnerabilities during resource development. Biannually (January and June), it examines global economic developments and prospects, with a special focus on developing countries, as well as analysis of topical policy challenges faced by developing countries through in-depth research detailed in this edition. Visit the knowledge center for this report and more.

New on our Knowledge Center: WTO World Trade Report 2015 and mobile app

Published on April 29, 2016

The WTO World Trade Report focuses on the benefits of the WTO Trade Facilitation Agreement (TFA), which was agreed by WTO members at the Ministerial Conference in Bali in December 2013. The 2015 World Trade Report is the first detailed study of the potential impacts of the TFA based on a full analysis of the final agreement text. The WTO has also published a companion app (on iTunes, Android, and Amazon app stores) to the report. The app includes the full text of the Report plus the underlying data for all charts and tables in the Report. It also contains a video and photos of the launch event. Go to our knowledge center for this report and more.

World Trade Report 2015

Published on April 29, 2016

The WTO Trade Facilitation Agreement (TFA), which was agreed by WTO members at the Ministerial Conference in Bali in December 2013, is the first multilateral trade agreement concluded since the establishment of the WTO in 1995. The 2015 World Trade Report is the first detailed study of the potential impacts of the TFA based on a full analysis of the final agreement text.The WTO Trade Facilitation Agreement (TFA), which was agreed by WTO members at the Ministerial Conference in Bali in December 2013, is the first multilateral trade agreement concluded since the establishment of the WTO in 1995. The 2015 World Trade Report is the first detailed study of the potential impacts of the TFA based on a full analysis of the final agreement text.Download here Get the companion app from the iTunes, Android, Amazon app stores. The Report’s findings are consistent with existing studies on the scale of potential benefits from trade facilitation, but it goes further by identifying and examining in detail a range of other benefits from the TFA. These include diversification of exports from developing countries and least-developed countries to include new products and partners, increased involvement of these countries in global value chains, expanded participation of small and medium-sized enterprises in international trade, increased foreign direct investment, greater revenue collection and reduced incidence of corruption.The Report also looks into the challenges of implementing the Trade Facilitation Agreement and examines how a new facility, launched in 2014 by WTO Director-General Roberto Azevêdo, will provide support to help developing countries implement the Agreement.

Regional passports for global recognition soon

Published on April 21, 2016

Holders of East African Community (EAC) passports who previously were limited to travelling to only five countries will from next year be able to cover other parts of the world.Speaking after a sensitisation seminar for Members of Parliament (MPs) of the Standing Order Committees on the integration process, the chairman of Tanzanian MPs in the EA Legislative Assembly (EALA), Mr Makongoro Nyerere, said that this comes after presidents of member states signed an agreement. Read more. Source: AllAfrica.