Category: Burundi

A ‘blossoming partnership’: digital corridor drives Kenyan flower exports to UK

International trade, however, has a huge part to play in keeping the UK’s florists stocked with fresh cut flowers. The second top import market to the UK for flowers is Kenya, which supplies just over 8 percent of British-sold flowers, or 10,000 tons, worth not far off £67 million. Cut flowers account for 25% of all Kenyan imports to the UK. The Institute of Export & International Trade has been working with donor organization TradeMark Africa (TMA) to implement a ‘digital trade corridor’ between the UK and Kenya to help simplify trade between the two nations. The initiative, called the ‘UK-Kenya Trade Logistics Information Pipeline’ (TLIP), aims to eliminate documentation and introduce better visibility in the supply chains flowing between the UK and Kenya. This initiative builds upon on the Kenya-UK Economic Partnership Agreement, which was signed in December 2020. TLIP's system uses blockchain technology to link all those in a supply chain together, enabling faster logistics and easier trading. Marco Forgione, director general of the IOE&IT, said: “This Valentine’s Day when you were giving your loved one a beautiful bouquet of flowers, consider the journey they have taken to put that smile on their face. Around nine different organizations are involved with the transportation of flowers from Kenya before they enter your home and all of these actions in the supply chain require documentation to move the goods along on their journey. “The trade corridor we are creating will provide more transparency and enable all actors to view the...

Building bold businesswomen, one at a time

The Editorial of Burundi’s Jimbere Magazine recently remarked that the TradeMark Africa (TMA) Women in Trade programme has, “Offered hundreds of Burundian women and girls the opportunity to learn and achieve their dreams. It has restored their pride in earning incomes, enabling them to become taxpayers and therefore contribute to the development of the country. Before the interventions, these women lived in fear of authorities and dreaded the day their businesses would be closed for non-compliance.” TMA has supported Burundi women traders since 2012, and formally launched a Women in Trade project in 2017 with funding from Netherlands. This progamme continues to train women traders in basic business practices and regional trade laws, as well connecting them to new markets. One of the implementing partners is Association Des Femmes Entrepreneurs Du Burundi (AFAB), a local association that advocates for the interests of businesswomen in the country. AFAB brings together various women-owned businesses and, “of the 400 men and women entrepreneurs targeted to benefit from training, 318 have been reached,” says Immaculalee Nsengiyumva, the AFAB Executive Secretary. AFAB’s success cuts across the country impacting the women cross border traders at Kobero-Kabanga border to those living further afield in Gasorwe. Zirfa Hamissi, business woman at the Kobero-Kabanga border When AFAB started training women traders around Kobero-Kabanga border, the crossing point between Tanzania and Burundi, a vocal and sceptical Zirfa Hamissi was among its first beneficiaries. “I had a hard time believing in stories told by AFAB and other trainers. But AFAB came...

Body language lessons help Burundi women solve border disputes

A guide to handling problems at any international frontier might usually entail tips on how to complete a form and a reference guide to import taxes and regulations. But in Burundi, the assistance has been taken a whole lot further with a guide on how to avoid confrontational body language when women traders, the bedrock of cross border trade, deal with customs and tax officials. Laid out in cartoon-style diagrams, the guide is one of many innovative ways Search for Common Ground (SFCG), an international NGO, is helping ordinary people adapt to the realities of trade now that one of Africa’s smallest states is now a member of one of Africa’s biggest trade blocs, the East African Community (EAC). “Our aim is to help women traders improve their position in the new realities of EAC membership, and that means helping them understand today’s realities of paying taxes and duties and dealing with officials without getting into rows,” says Floride Ahintungiye, Programme Director of SFCG, “It starts with just simple things, like learning that finger pointing immediately sets your interlocutor on the defensive. It’s amazing how much progress you can make when you start off with the right attitude of working together to solve problems.” As the EAC grows and becomes more streamlined, borders become the interface not just between member states but EAC citizens, women notably, struggling to come to terms with the new realities of tariffs, duties and procedures EAC rules mandate. Signs posted along major roads in Burundi...

Burundi tax success builds confidence, business image and hospital

A gleaming new hospital stands on a hillside in rural Burundi, a tribute to a tax system envied in many parts of Africa and the government’s commitment to home-grown development of one of the world’s poorest countries. “It was built entirely from our own resources,” says Dr Liboire Nigiri, Director General at the Ministry of Public Health. “Before long Burundians won’t have to go abroad for interventions and surgery. They will use their very own hospital.” The 150-bed Karusi referral hospital is the latest gleaming example of the way that the government of Burundi has turned around a corrupt and ineffective tax collection system to comply with the demands of East African Community (EAC) membership and modernise its public spending. The facility which was officially opened in mid-2014 boasts of a gleaming new ambulance parked outside the emergency area, new beds, mattresses, furniture and equipment, flowers budding along its tidy walkways and grass taking root in open areas. “This facility, paid for entirely from domestic funds, would never have been possible without the leadership of the government and the hard work and dedication of the OBR (Office Burundaise des Recettes – Burundi Revenue Authority) says OBR Commissioner General Dr. Domitien Ndihokubwayo.” Over the last four years, the government has moved closer to its target of funding its own spending 100% from its own tax and customs revenue. OBR has been supported by TradeMark Africa as part of its programme to help EAC governments and private sector institutions modernise and improve...

Burundi Bureau of Standards and Quality Control – Modernising Standards to Guarantee Quality and Safety

Slowly, but perceptibly, sediment forms out of a white substance and gathers at the bottom of a test tube in a small laboratory off the main road in Bujumbura. The sediment’s name is fraud. “What you are seeing is the analysis of a milk sample we took from a street vendor,” says laboratory assistant Benoit Glaud. “It’s been diluted with flour and with water, which is no surprise to us. Basically, Burundians are victims of massive fraud in foodstuffs. Glaud is a consultant working to modernize the tools and methods of the Burundi Bureau of Standards and Quality Control (BBN) to help exporters compete in the East African Community (EAC) market and to accustom producers and consumers to the idea that standards are not an extra tax but a guarantee of quality and safety. “Having the BBN stamp on your product is vital for the free movement of goods within the (East African) community,” says Damien Nakobedetse, BBN’s Director-General. “Without laboratory test results and the BBN stamp, it is very difficult to sell a product beyond the local market. Without certification, many countries will refuse imports or demand further analysis, which is expensive.” BBN has been around for two decades but its mission gained added urgency with membership of the EAC and the need for strict standards in the emerging single customs area the bloc is establishing. It was a case of standardize to survive. Across the community, TradeMark Africa (TMA) is helping national standards offices modernize, develop and introduce...

One stop border posts – contributing to the ease of doing business in East Africa

Abdul Mohamed is a small business owner based in Dar es Salaam Tanzania. He owns and drives his own truck, which he uses to export plastic chairs to neighbouring Burundi. On Tuesday 9 September 2014 Abdul leaves Dar es Salaam at 7.00 AM carrying almost 2,000 chairs bound for a retailer in Bujumbura, the capital city of Burundi. The following day at 1.00 PM after 30 hours on the road, Abdul arrives at the border post of Kobero, just inside Burundi territory. Abdul Mohamed has been exporting chairs to Burundi for the last three years, a five-day return journey covering nearly 2,400 Km. He has made good time on this journey and he expects to spend up to four hours at the border post before getting back behind the wheel and on the road. But it wasn’t always so. Just four months before, Abdul would have had to make the same journey with two border stops, the first at Kabanga on the Tanzanian side of the border, then at Kobero. The procedure was lengthy. Abdul would, through the services of a clearing agent, declare his goods to the customs officers who would make a physical inspection of his cargo. That could take up to 12 hours as he waited in line with the many other truck drivers who use the central corridor to carry goods inland from the port of Dar es Salaam. Then, having completed that procedure, Abdul would go through immigration procedures before finally being allowed into the...

Helping women with small businesses to compete in the East African market

One of TradeMark Africa’s (TMA) objectives, towards its ultimate goal of reducing poverty by increasing trade in East Africa, is improved cross border processes for small traders, especially women. Empowering women in the East African Community as part of the regional integration process is essential to TMA’s goal of improving business competitiveness. Its long-term aim is, through policy change, to eliminate barriers that affect women in trade. In Uganda, TMA is contributing to this by advocating for policy change that will assist women cross border traders and by building capacity, specifically through women’s organisations. “Women need help because of their historic marginalisation”, said iCON Programme Director, Ben Matsiko Kahunga. “They need both confidence and means. If a woman is processing and packaging juice what does she need to cross borders? How does she access quality certification? How can she get advice about packaging, branding and standards?” That is a question that had never occurred to Esther Kabengano, a 37 year old mother of two, living in the Ugandan capital Kampala, where she runs a small business processing and selling fruit juice. She was just too busy trying to survive. By any standards, Kabengano’s business is small, operating from her home where she makes 10 litres of juice at a time (10 litres being the size of the container she uses to hold it) and which she sells on the streets of Kampala by the cupful. Her profit is Ush 4,000 per day - about US$1.5. The profits are not enough...

Setting the East African Standards for Increased Trade and Prosperity

The five Partner States of the East African Community (EAC) are currently involved in activities related to the conformity of products traded within the region. The process which includes the preparation, approval and adoption of the standards related to those products is undertaken by the different national standards bodies in each one of the partner states. A common definition of a standard is a document approved by a recognized body that provides for common and repeated use rules, guidelines or characteristics for products or related processes and production methods, for which compliance may or may not be mandatory. Standards play an important role in regional integration. “Standards are vital to integration,” says José Maciel, Director of Non-Tariff Barriers (NTBs) and Standards at TradeMark Africa (TMA). “In addition to safeguarding the health and safety of the consumers and the environment, standards can cut the cost and time of doing business by huge amounts. In that sense, they are central to the future wealth of the EAC.” All across the five-nation regional economic bloc, TMA is helping national partners harmonize the standards of the most commonly traded goods in the region so that they can cross borders unimpeded by questions about their authenticity or reliability or origin. These include some of the most-traded goods in the EAC such as tea, coffee, iron, petroleum and edible fats and oils. TMA is assisting the EAC national bureaus of standards, the private sector and the EAC Secretariat on two levels: national and regional. At the...

Licking poverty in East Africa – the lollipop example

Whenever I talk or write about East African integration I use this picture of three boys sharing a lollipop. I don’t know where the photo came from or who the boys are, but I do know that it speaks volumes about the way trade could lift millions out of poverty. These three little boys in Kigali are sharing a lollipop. They lick it in turns. The lollipop is imported, so 45% of its cost is due to transport and allied costs. It might have been made in Kenya or Tanzania or even further afield, and it has travelled thousands of kilometres and several borders. So whichever of the boys bought that treat, he’s paying part of the freight clearance charges, handling charges, insurance, fuel costs and the salary of the trucker who got it to the Rwandan capital. It’s no wonder that the boys cannot afford to buy their own lollipops but have to share one. Transport costs in East Africa are among the highest in the world. This is largely due to infrastructure and regulatory constraints but the major reasons for the high costs are policy, legal and regulatory constraints, not infrastructure. It’s not only the slow ports or bad roads that up the price, its old policy and legal habits and slow border crossings. It takes 28 days and $600 to move a 40-foot container from the port of Shanghai, China to Mombasa, Kenya. It can take almost the same amount of time for the same container to...

Parlez vous EAC? Burundi scales up English to master integration

Listen! What’s that sound bubbling up from the basement of the Ministry at the Presidency of East African Community Affairs (MPACEA) in the Burundi capital, Bujumbura? It sounds like a large group of people talking away to themselves in English. Is it some kind of foreign meditation group? Or perhaps a cocktail party organized by the British embassy? Far from it. It’s a group of men and women sat at computer terminals learning how to speak English so that Burundi will not be linguistically challenged by the dominance of English as the language of business in the East African Community. “We knew we would have to learn English to integrate with the EAC,” said MPACEA minister Hafsa Mossi. “Our government recognised the need to add English to our language abilities so now we have an English Language Laboratory in the basement.” She jokes (in English) with a group of students emerging from the basement. “How did it go?” she asks. “It was hard at first, but it is getting easier every time I come,” says one male student, with barely a trace of an accent. The first students, in a programme supported by TradeMark Africa (TMA), were ministers, permanent secretaries and civil servants, all of whom will add some knowledge of English to the local language, Kirundi, and French, a leftover from Colonial times. The programme, carried out by Williams Academy of the United States, aims to train up 2200 Burundians in groups of about 300 students with three-month intensive...