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Burundi

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Burundi

Content

Burundi INTRODUCTION

AGRICULTURE & FOOD

• Pierre Nkurunziza, a Leader for Today and Tomorrow

• Agriculture is Driving Force Behind Economy

• Peace, Prosperity and Poverty-Reduction

• Making the Most of Vast Agriculture Potential

• OTB

• Second Vice President Cites Significant Progress Being Made

• EU Ambassador Cites Investment Opportunities

• Dutch Ambassador Highlights New Programmes

GOVERNMENT • Stable Republic with Democratic Processes

BUSINESS & INVESTMENT OPPORTUNITIES 17

• Chamber Keeping Private Sector on the Move • Keeping Economic Growth on Track

19 20

• From Conflicts to Economic Developments

• Burundi Open for Business

• Office Burundais des Recettes

FINANCE • Development Strategies Putting Burundi on the Right Path

• Central Bank Governor Outlines Financial-Sector Progress • Banque Commerciale du Burundi

31 32

• Financial-Sector Reforms Praised by International Observers • KCB Bank

• Vast Potential in Untapped Energy and Mining Resources

IT & TELECOM • Major Projects Spurring on Telecom Growth

• ICT Sector on the Move

TRANSPORT & LOGISTICS

• Good Governance Key to Stability and Economic Growth

ENERGY & MINING

33 34

• Building Tomorrow’s Burundi

• Upping Transport-Infrastructure Quality and Reducing Costs

HEALTH • Progress Being Made in Improving Healthcare Services

• Impressive Progress in Meeting Healthcare Challenges

TOURISM • Burundi, the Beating Heart of Africa

• City Hill Hotel

• Unique Sites with Exceptional Tourism Potential

• Sun Safari Club Hotel

• Hotel Club du Lac Tanganyika

Special thanks to:

TRADE & INDUSTRY • Stepping up Trade and Adding Value

• Access to 450 Million Consumers

• Savonor

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Burundi

Pierre nkurunziza, a Leader for Today and Tomorrow H.E. Pierre Nkurunziza, elected President of the Republic of Burundi in 2005 and re-elected in 2010, became President at a time when Burundi was devastated after more than a decade of civil war and dictatorship. In his inauguration speech, President Nkurunziza declared his ‘zero tolerance’ for corruption and related offences, and pledged to build villages for Burundians living in rural areas. Through his strong commitment to restoring peace and economic prosperity, the President has focussed his administration on reconstruction and reconciliation, economic recovery and political stability. H.E. Pierre Nkurunziza was born in Ngozi province in northern Burundi in 1964. After completing his university education with distinction, the future President served as a secondary-school teacher and then as Assistant Lecturer at the University of Burundi from 1992 to 1994. He then joined the CNDD-FDD rebel group and was elected chairman in 2001 and in 2004. He served as Minister of Good Governance and State Inspector General in Burundi’s transitional government in 2003, and led the CNDD-FDD delegation during the peace negotiations which culminated in a global ceaseﬁre and a power-sharing agreement that year. Known as a true man of the people, President Nkurunziza is dedicated to poverty reduction and has launched a number of innovative social programmes, including free education for primary school children and free

H.E. Pierre Nkurunziza, President of the Republic of Burundi

maternity and paediatric healthcare services. The President also supports several sports and environmental projects.

elected Chairman of the East African Community in November 2010, a clear sign of confidence in his leadership at the regional level.

He has won many international awards for his enlightened leadership, including the ‘Prize on Peace’ from the UN Commission on Peace Consolidation; the ‘Model Leader for a New Africa’ award from the US-based African Forum on Religion and Government; the ‘Rising Star of Africa’ award from India-based Unity International; and an award from Monaco-based Peace and Sports International for successfully employing sports as a tool for reconciliation, among many other accolades. President Nkurunziza was

President Nkurunziza discusses his country’s recent accomplishments and future goals. European Times: What would you most like the international community to know about Burundi? Pierre Nkurunziza: My most important message is that while Burundi had huge problems in the past, those difﬁcult days are over. Burundi is now a country at peace, offering the security and stability which are the

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Introduction

necessary foundations for economic development. International investors are looking for peace and stability in countries they target, and now Burundi can offer these. In addition, Burundi has demonstrated its commitment to peace through making major contributions to peace-keeping missions throughout Africa, particularly in Somalia, Sudan and Ivory Coast, and has pledged to contribute troops for Mali. European Times: During your visit to UNESCO headquarters in Paris in March this year, UNESCO’s Director-General commended you for your commitment to peace and the ﬁght against poverty as well as your support for education. What are some of your main goals for Burundi in the coming years? Pierre Nkurunziza: In addition to supporting Burundi’s economic and social development as well as improved quality of life for our people, I would like to see our country play a very productive role in the regional, African and international community. One example is our partnership with UNESCO in our Vision 2025 programme to ﬁght poverty and foster economic growth. We want to share our progress with our neighbours and to promote peace throughout the region. We are committed to pursuing economic growth while also protecting Burundi’s natural and cultural heritage. For example, we hope to work with UNESCO to include ‘Drums of Burundi’ on the UNESCO ‘Intangible Heritage’ list. Other projects we want to launch include the Virtual Library and an Institute of Sports and Physical Education, which we intend to be a

Presidential Ofﬁce

regional reference centre for sport. We also hope that the House for a Culture of Peace initiative in Burundi, which embodies the priority accorded to Africa by UNESCO, will play a central role across the region. European Times: What are some of the opportunities Burundi offers to international investors? Pierre Nkurunziza: Burundi is now part of the East-African Community, a leading motor for economic integration in Africa, and this means investors can access fast-growing regional markets from here in Burundi. Our country has many high-poten-

tial opportunities in a wide range of sectors, including agriculture – which is the backbone of our economy – as well as mining, tourism, communications and telecommunication technologies, and last but not least, the energy sector. There are plenty of reasons for investors to come to Burundi. We have also improved our programmes to ﬁght against poverty, our business code and the quality of our business environment. We are committed to economic development and have launched our ambitious Burundi 2025 economic growth strategy. We welcome international investors and we are ready to offer them all the support they need to make their businesses a success.

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Burundi

Peace, Prosperity and Poverty-reduction Burundi has achieved an impressive track record in recent years. Plagued by a devastating 12-year civil war that ﬁnally ended in 2005, the country has managed to maintain peace since the war and is steadily building the foundations for sustainable economic growth and improved quality of life for Burundians. An ancient land first mentioned in written history in the 16th century, when it was ruled by hereditary kings, Burundi is a small, landlocked country in East Africa that straddles the Congo river and Nile divide in the Great Rift Valley and is bordered by Rwanda, Tanzania, and the Democratic Republic of Congo. Burundi was colonised by Germany and then Belgium before achieving its independence in 1962. After the war ended in 2005, President Pierre Nkurunziza was elected democratically and Burundi’s coalition parliament devised a new constitution. President Nkurunziza was re-elected in 2010. This once war-torn nation has become a force for peace and economic unity in the region.

Poverty and population growth Many problems remain, however. Burundi is one of the world’s poorest countries and, with a population of around 8.5 million, it has one of the densest populations in Africa, along with a high population growth rate. Around 90% of Burundians

are dependent on subsistence agriculture and around half the population lives below the poverty line. Burundi’s rural inhabitants are the most severely affected by poverty and food insecurity. In spite of these challenges, Burundi has shown great promise in fostering a modern economy which will create jobs and help to eradicate poverty. Now a member of the East African Community (EAC), Burundi is stepping up its regional trade and continuing to improve its business climate. Gervais Rufyikiri, Burundi’s Second Vice President, has announced that Burundi

is targeting economic growth of 8.2% in 2015, an ambitious goal the country hopes to reach by attracting investment in the mining, energy, agriculture and tourism industries. The war destroyed much of Burundi’s infrastructure and stalled growth in all economic sectors, but today the country offers outstanding untapped investment potential in many areas. Burundi also has a rich cultural and natural heritage which its current leaders are working to preserve. In spite of war damage, the country still contains many areas of great natural beauty where thousands of bird species, chimpanzees, roaming

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Introduction

buffalo, the popular Sangala, colourful cichlid ﬁshes, crocodiles, hippos, and many other animal species have made their home.

A major conference of Burundi’s development partners was held in Geneva in October 2012, and at the event Second Vice President Gervais Rufyikiri outlined the Burundi government’s new strategic plan for the country’s development up to 2025. He said, “The plan’s major priorities are strengthening the rule of law, increasing productivity in the agricultural sector, overcoming the energy deﬁcit, promoting tourism, achieving infrastructure improvements, providing sustained support for privatesector development, and strengthening programmes already underway in human-resources development, healthcare, education, environmental protection, gender equality, good governance and combating corruption.”

A call for more EU support Burundi’s ongoing development is being supported by international partners, including the EU, which has financed projects throughout the country for many years, including nearly €40 million for projects in food security alone. Today, the EU Ambassador in Burundi, Stéphane de Loecker, is focussing on attracting more funding and investment from the EU as Burundi continues to develop its economy. The EU Embassy is partnering with the government to help Burundi prepare for its next general elections in 2015, which should demonstrate the country’s commitment to democratic processes. As Jolke Oppewal, the Netherlands’ Ambassador to Burundi, points out, “Burundi has made great progress so far and the 2015 elections will be a milestone

for the country where we will be able to see how the ruling party and the opposition can work together constructively. Business indicators for Burundi are getting stronger, and there are vast opportunities here for investors.”

UN representative praises progress While many around the world still associate Burundi with its civil-war years, observers with experience in the country focus instead on how much progress Burundi has made. In a briefing to the United Nations Security Council in January 2013, Parfait Onanga-Anyanga, Special Representative of the SecretaryGeneral and Head of the UN Office in Burundi, pointed out that the country was enjoying an unprecedented period of uninterrupted democratic progress and stability. He added, “Lifting a country out of poverty and healing the wounds of cyclical violence are immense challenges. Overcoming them requires the contributions of all elements of society. To move forward, it will be crucial that we do not lose sight of the objective Burundi has set for itself in the Arusha Peace and Reconciliation Agreement of 2000 and in its 2005 constitution. I am confident in the capacity of the Burundian government and people to build a more open and democratic society that will be better able to respond to the major tasks at hand.”

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Burundi

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Second Vice President Cites Significant Progress Being Made Gervais Rufyikiri, Second Vice President of Burundi since 2010, was named President of Burundi’s Senate in 2005. He holds a Ph.D in Biological, Agricultural and Environmental-Engineering Sciences from Belgium’s Catholic University of Louvain and often represents his country in meetings abroad. European Times: What are some of Burundi’s accomplishments since you became Second Vice President? Gervais Rufyikiri: As Second Vice President I am committed to improving governance, promoting transparency and fighting corruption through regularly monitoring all the institutions for which I am responsible. Burundi has in fact made great progress in recent years. A report published by the East African Community (EAC) in September 2012 noted that Burundi is now ranked second in the EAC in its efforts to combat corruption. The current government has zero tolerance for corruption, and we have taken great steps forward in achieving transparency and a true open market. I also launched an initiative in 2010 to improve Burundi’s ‘Doing Business Report’ ranking, which was 181 out of 183 countries in 2011, and through our reform measures we managed to improve the ranking to 172 in 2012 and to 159 in the ‘Doing Business Report 2013’ published in October 2012. In fact, the latest report ranked Burundi number five among the world’s top ten reforming countries. The improved business climate has led

Gervais Rufyikiri, Second Vice President

to more investment, more job creation, and more growth for the formal economy as opposed to the informal one. This achievement has greatly improved Burundi’s image among international investors. European Times: What else is the government doing to attract more international investment to Burundi? Gervais Rufyikiri: A year ago it took an average of 11 procedures and 32 days to start a business in Burundi, but since May 2012 it has taken less than a day and now involves only one

procedure. In addition, we have created a one-stop shop for investors, both local and foreign. These two initiatives have also helped to reduce corruption. One of our current priorities is to increase our supplies of energy in order to support new investment projects. We are working on various energy initiatives, including the construction of a dam for hydroelectric power production in a partnership with the government of India, a dam to be built by an Indian company, and another dam for which a Chinese company is now doing a feasibility study. Burundi produces around 40 MW of energy and we hope to

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Introduction

increase this to 100 MW or 150 MW in the next four to five years with the help of foreign investors and development partners like the European Investment Bank and the World Bank. European Times: What are some other upcoming FDI projects? Gervais Rufyikiri: An IndianAmerican investor aims to build a large shopping and mixed-use complex which will include office space, a hotel and the first 15-storey building in Bujumbura. There are many other big projects being planned. European Times: How would you describe Burundi’s relations with the EU? Gervais Rufyikiri: The EU is a top market for us as well as a key source of development support. Our relations with the EU are outlined in the Cotonou Agreement, through which the EU is promoting poverty reduction and sustainable economic development in African, Caribbean and Pacific countries. In a recent meeting with EU representatives, we discussed EU support for a development to take the place of Bujumbura’s central market, which was destroyed by fire in January this year. European Times: What is Burundi doing to improve its international image? Gervais Rufyikiri: The current government is working very hard to make the world aware that Burundi is at peace and achieving great progress in many areas. Burundi was shaken by crisis in the past, but international investors should

know that we have achieved stability. Burundi is even a force for peace in the region. Our constitution guarantees a democratic system, transparent and free elections, free press, and includes measures designed to ensure peaceful coexistence among the different groups that make up our population. Today, Burundi is one of the most peaceful countries in the region. Burundi has also made signiﬁcant progress in protecting human rights, including rights for women. Women now hold around 30% of all government and private-sector management posts in the country, and we are providing equal educational opportuni-

ties for girls and boys as well as severely punishing gender-related crimes. While Burundi is still a poor country, it has the potential to eliminate poverty, particularly through developing its high-potential agriculture sector. We also have mineral wealth, including nickel deposits, that we have not yet exploited, and Burundi offers exceptional tourism attractions which have not yet been fully developed, from Lake Tanganyika to chimpanzee reserves. Burundi has a young workforce, great tourism appeal and rich natural resources, so we are certain that with education, investment and support, this country can achieve sustainable economic growth.

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Burundi

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Eu Ambassador Cites investment Opportunities Stéphane de Loecker, EU Ambassador to Burundi, discusses projects and priorities. European Times: What are some of the EU delegation’s current projects? Stéphane de Loecker: We are helping the government prepare for the 2015 elections, which will be a milestone for Burundi, and are ensuring that the opposition is involved in the process. All parties seem to realise that peace is the way to progress. We are also trying to generate more support for Burundi in the EU, for example through the European Globalisation Adjustment Fund and other funding sources. We are particularly advocating support in four key areas: healthcare, rural development, good governance and energy. Burundi has enormous untapped hydropower potential, and we are working with the World Bank on the €700 million Ruzizi III regional hydropower project. Another project we support is to build solar panels to be used in the healthcare sector. We believe that political stability and improved energy supplies are the two main factors that will kick-start Burundi’s economic development. European Times: What are some of the main challenges Burundi faces? Stéphane de Loecker: While the country’s GDP has been rising, GDP per capita has been declining. In some areas, the population density is 600 inhabitants per square kilometre and the birth rate is 6.4 children per woman. This is a ticking time bomb. It is up to the government to

Stéphane de Loecker, EU Ambassador to Burundi

take steps to deal with this. We are supporting educational programmes as well as providing assistance in achieving transparency, since this is crucial in obtaining international support. Even though there are challenges, Burundi is deﬁnitely making progress. European Times: Why should European investors target Burundi? Stéphane de Loecker: Burundi has dynamic leaders, including Second Vice President Gervais Rufyikiri. In addition, this country offers many high-potential investment opportunities, particularly in agriculture, energy and mining. In agriculture, promising crops include pineapples, avocados, tomatoes and palm fruits, all very

high quality, but needing better infrastructure and management. In mining, Burundi has a large nickel deposit that is just being explored. Extracting and refining are extremely energy-consuming and transportation is a challenge, but with the help of investors, train lines could be built from Kigoma, Tanzania to Bujumbura, going past the mines. In energy, Burundi could supply its own needs and export electricity. European Times: What is your personal message to our readers? Stéphane de Loecker: This country needs you and while there are still challenges, you can make a profit here. My main message is that Burundi definitely has potential.

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dutch Ambassador Highlights new Programmes Jolke Oppewal, the Netherlands’ Ambassador to Burundi since February 2013, discusses his embassy’s projects and goals. European Times: What are the Dutch government’s priorities in Burundi? Jolke Oppewal: In 2011, the Netherlands decided to concentrate its development-cooperation programmes on 15 countries and chose Burundi as one of them. Our long-term plan for Burundi focusses on the three Ds: defence, diplomacy and development. One priority is to make sure that Burundi’s development aid is going to the right people in a transparent manner. The Burundi government has partnered with the Dutch Ministries of Defence and Security & Justice in upgrading the army, including integrating the former rebel army, and launching a police force. The Dutch Embassy also has programmes on food security and on sexual and reproductive health and rights. Regarding food security, our programme aims to boost agricultural productivity and includes distribution of fertiliser subsidies directly to farmers in a transparent process. In all this we envisage a stronger role of the private sector. European Times: What is your assessment of Burundi’s current government? Jolke Oppewal: Burundi has emerged from a deep conﬂict and has reached stability. It is now in the transition of a postconﬂict state to a development-oriented state. The challenge for the government is to guide that process and show leadership in moving the country forward. European Times: Why should foreign investors target Burundi? Jolke Oppewal: Dutch company Heineken, which partly owns Brarudi Brewery, is one of the biggest foreign investors in Burundi and the brewery accounts for 10% of Burundi’s GDP. This is a successful private investment in an important product for the local market: beer. But Burundi also has potential for exports to regional and world markets, such as minerals and agricultural products, and Burundian coffee and tea which

Jolke Oppewal, Dutch Ambassador to Burundi

are among the best in the world. To develop this potential many investments are at present foreseen in energy, infrastructure and agro-processing. Partly, these will be ﬁnanced by grant money. One important Dutch program in this respect is ORIO, at this moment assessing investments in projects involving drinking water systems, waste-collection management and healthcare. Another example is PSI, a program to support pilot scale investments in innovative businesses up to €1.5 million. On condition of a good business plan between a foreign and a Burundian partner, we are willing to take over 60% of the start-up costs. The number of applicants from Burundi this year was among the highest, showing the eagerness and creativity of the private sector to invest in the potential of Burundi. European Times: What is your personal message? Jolke Oppewal: Burundi has come a long way from a very deep crisis and offers many opportunities. This is not the moment to let Burundi down.

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Burundi

Government

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Government

Stable republic with democratic Processes Burundi is a republic which achieved its independence from Belgian administration in July 1962 and ratiﬁed its constitution by popular referendum in February 2005.

Burundi’s government is led by the President, who serves as the head of government and chief of state. The President is seconded by the First Vice President and the Second Vice President, whom the President appoints and Parliament must approve. The President also appoints members of the Council of Ministers, which serves as a cabinet. The legislative branch is a bicameral Parliament comprising the Senate and the National Assembly. The Senate has 54 members, of which 34 are elected to serve ﬁve-year terms; the rest are appointed to represent ethnic groups. The National Assembly has a minimum of 100 seats, of which 60% are held by Hutus and 40% by Tutsis, with at least 30% of total seats held by females. Additional seats are appointed by the National Independent Electoral Commission to ensure ethnic representation. The judicial branch includes a Supreme Court, a Constitutional Court, and a High Court of Justice. Burundi’s legal system is based on Belgian civil law. Philippe Nzobonariba is Secretary-General and spokesman for the government.

Key leaders President Pierre Nkurunziza has been Head of Government and Chief of State since 2005. President Nkurunziza, Hutu, completed his studies at the University of Burundi and

was a lecturer there. In 1995, he joined the CNND-FDD as a soldier, and later became Deputy Secretary General and then Chairman of the CNND-FDD. In 2003, he was appointed Minister for Good Governance in the transitional government of President Domitien Ndayizeye. He was elected President in 2005 and re-elected in 2010. As President, his priorities are reconstruction and reconciliation, economic recovery, political stability, peace and prosperity. President Nkurunziza puts great emphasis on sport as a tool for reconciliation and set up a Soccer Academy attended by over 300 young people. President Nkurunziza has been awarded many prizes, including the “Interfaith Peace Building” award, and in 2009 he became the ﬁrst African president to receive the “Model Leader for a New Africa” award from the African Forum on Religion and Government. In 2010, he was presented with the “Rising Star of Africa Award” by India-based Unity International Foundation. Therence Sinunguruza, First Vice President since August 2010, Tutsi, is a member of the UPRONA party. As Vice President he is in charge of political, administrative and security matters. He has held various ministerial posts, including Minister of Institutional Reforms, Minister of Justice and Minister of Foreign Affairs. He was also Burundi’s Ambassador to the United Nations from 1993 to 1994. Gervais Rufyikiri, was appointed Second Vice President in August 2010. Hutu and a member of the CNDD-FDD party, he was elected President of the Senate in August 2005. Gervais

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Burundi

Rufyikiri holds a doctorate (PhD) in biological, agricultural and environmental engineering sciences from the Catholic University of Louvain in Belgium. He often serves as the spokesman for Burundi in prominent international meetings.

Elections The President is elected by popular vote for a ﬁve-year term and is eligible for a second term. Presidential elections were last held in June 2010 and will next be held in 2015. Vice Presidents are nominated by the president and endorsed by Parliament. Members of Parliament are either elected by popular vote for a ﬁve-year term or appointed. Parliamentary elections were last held in July 2010; the next are scheduled for 2015.

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strengthening relations between Burundi and Belgium. He advises on foreign policy. Minister of Good Governance and Privatisation Issa Ngendakumana, Minister of Good Governance and Privatisation, obtained a graduate degree in economics and social policy from Belgium’s Catholic University of Louvain and served as Burundi’s Minister of Human Rights and Refugees. He heads efforts to promote good governance. Minister for East African Community Affairs Leóntine Nzeyimana, Minister of East African Community Affairs, has a master’s degree in international relations. She previously headed the Senate’s committee on political, foreign and East African affairs and was the assistant to the governor of Burundi’s central bank. Minister of Justice and Attorney General Pascal Barandagiye, Minister of Justice and Attorney General and Attorney General, was formerly the national coordinator of institutional support. An attorney and judge, he previously served as a member of the Constitutional Court and as Prosecutor General.

Government

Minister of Finance and Economic Planning Tabu Abdallah Manirakiza, Minister of Finance and Economic Planning, oversees Burundi’s ﬁnancial policies and activities and has played a key role in strengthening the national economy. He won the prestigious “Africa Development Ambassador’s Award” in the UK in 2012.

Minister of the Interior Edouard Nduwimana is in charge of Burundi’s internal affairs. He was formerly the Governor of Kayanza province. Minister of Public Security and Police Commissioner Gabriel Nizigama, Minister of Public Security and Police Commissioner, served as president of the national commission overseeing border issues and is now in charge of maintaining domestic security. Minister of Foreign Relations and International Cooperation Laurent Kavakure, Minister of Foreign Relations and International Cooperation, was Burundi’s Ambassador to Brussels from 2006 to 2010 and received the prestigious “Grand Cross of the Order of the Crown” for his contribution to

Minister of Municipal Development Jean-Claude Ndihokubwayo, Minister of Municipal Development, formerly led the National Youth Association and served as legal counsel to the First Vice President as well as Head of Rohero Municipal Council. He is in charge of municipal affairs. Minister of National Defence and Former Soldiers Major General Pontien Gaciyubwenge has held a number of prominent posts in the military and now heads efforts to ensure Burundi’s national defence. Minister of Public Health and the Fight against HIV/Aids Dr. Sabine Ntakarutimana, Minister of Public Health, is a physician who earned a master’s in public health from the

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Free University of Brussels. She served in the EAC Parliament and now heads Burundi’s public-health initiatives. Minister of Higher Education and Scientiﬁc Research Dr. Joseph Butore, Minister Higher Education and Scientiﬁc Research, actively promotes Burundi’s research activities and works to develop the country’s higher-education system. Minister of Primary and Secondary Education, Trades Education, Vocational Training and Literacy Dr. Rose Gahiru, Minister of Primary and Secondary Education, Trades Education, Vocational Training and Literacy, was appointed in February 2013 to head Burundi’s efforts to improve its educational and training programmes. Minister of Agriculture and Livestock Odette Kayitesi, Minister of Agriculture and Livestock, is an agronomist who is leading programmes to develop and add value to Burundi’s high-potential agriculture sector, including livestock-breeding. Minister of Telecommunications, ICT and Parliament Relations Léocadie Nihazi, Minister of Telecommunications, ICT and Parliament Relations, oversees Burundi’s communications policies and projects. Minister of Water, Environment, Land Use and Urban Planning Jean-Claude Nduwayo, Minister of Water, Environment, Land Use and Urban Planning, is an engineer who oversees efforts to achieve environmentally friendly development,

reliable water supplies and modern infrastructure. Minister of Commerce, Industry, Postal Services and Tourism Victoire Ndikumana, Minister, develops policies and projects which will support a dynamic private sector and a successful tourism industry. Minister of Energy and Mines Côme Manirakiza, Minister of Energy and Mines, is a construction engineer working to attract investment to the highpotential energy and mining sectors. Minister of Public Services, Labour and Social Security Annonciata Sendazirasa heads the government’s efforts to achieve efﬁcient government and social services and to create jobs. Minister of Transport, Public Works and Equipment Déogratias Rurimunzu, Minister of Transport, Public Works and Equipment, is heading Burundi’s public transport-infrastructure and public-works development. Minister of National Solidarity, Human Rights and Gender Equality Clotilde Niragira, oversees efforts to achieve reconciliation between Tutsis and Hutus, compliance with the Arusha Accords, and gender equality. Minister of Youth, Sports and Culture Adolphe Rukenkanya, Minister of Youth, Sports and Culture, heads efforts to develop services for youth as well as new sports and cultural activities.

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• Chamber Keeping Private Sector on the Move • Keeping Economic Growth on Track • From Conflicts to Economic Developments • Burundi Open for Business

Business & Investment Opportunities

“We should all have faith in Burundi!” Issa Ngendakumana, Minister of Good Governance and Privatisation

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LAnd

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Business & Investment Opportunities

Good Governance Key to Stability and Economic Growth Issa Ngendakumana, Minister of Good Governance and Privatisation, discusses his ministry’s key goals. European Times: What are your ministry’s priorities? Issa Ngendakumana: Following many years of war and unrest, the government of Burundi realised that promoting good governance was essential in ensuring stability, peace and economic development. For these reasons, the Ministry of Good Governance and Privatisation was created in 2002 and I am the country’s ﬁfth Minister of Good Governance and Privatisation. European Times: What are some of your recent projects to promote good governance? Issa Ngendakumana: We have three main priorities. The ﬁrst is to promote democracy through ensuring a multiparty system, free speech, freedom of the press, and the right to form associations. The second is to improve the business climate, which includes promoting good governance in the private sector. Burundi has already greatly reduced the time it takes to start a new business and we now have a one-stop shop for entrepreneurs and investors. The third priority is to

Issa Ngendakumana, Minister of Good Governance and Privatisation

ensure good governance in the public sector through improving the performance of public officials, fighting corruption and promoting transparency. One very successful initiative was the creation of our new Office of Burundian Revenues. Tax revenues increased by 30% between 2011 and 2012 alone and the state’s revenues grew by 15%. Another important project was to consolidate all of the state’s accounts into one main account, which has facilitated controls on expenditures. We have also established a new regulatory authority to reassure investors that their interests will be protected. In other words, Burundi has created a climate of confidence and has become famous in Africa for its reform efforts. European Times: What role does your ministry play in attracting foreign investors to Burundi? Issa Ngendakumana: In addition to promoting good governance, this ministry and other government offices are working to make the world more aware that Burundi has achieved peace and security. It is hard for people to change a negative image they have of a country, so we must make a big effort to communicate to people outside

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Burundi

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group will build a five-star hotel here. For all privatisation initiatives, we announce tenders internationally in the press and through diplomatic missions and other outlets. We welcome investors from around the globe, particularly ones who can bring in new technologies and create jobs for Burundians. One of our tasks is to help make sure Burundians understand the benefits of privatisation and are not afraid of it. European Times: Can you highlight sectors which offer particularly strong investment potential? this country that Burundi has evolved and has made great progress over the past few years. The ball is in the government’s court concerning sending a message to our partners and potential investors. Every quarter I ﬁle a report with our development partners concerning the progress being made on current projects, and we have regular discussions with the EU’s Ambassador to Burundi concerning Burundi’s relations with the EU. I am also trying to encourage the private sector to work more closely with the public sector to help us improve the business climate. European Times: What progress is being made in Burundi’s privatisation programme?

Issa Ngendakumana: While privatisation in Burundi officially began in the 1980s, the programme really did not get off the ground until around three years ago. We began with the coffee sector, privatising 41 plants by May 2012, which brought around €2.4 million (BIF 5 billion) to the state treasury. Two Swiss investors have now entered the coffee sector. We also awarded a concession to Mauritius for the Bujumbura Textile Complex, and this project will support around 1,000 jobs, which makes it very important for Burundi’s economy. We are currently looking into privatising the sugar industry, and Burundi has already attracted FDI in the hotel sector; the Serena

Burundi has made impressive progress and I think that anyone who visits our country today and comes back six months from now will see even more improvements.

Issa Ngendakumana: Agriculture, food processing and infrastructure are all high-potential sectors. Concerning infrastructure, we are building new roads and rail connections to facilitate export activities and we are planning a new airport in Gitega and a modern business centre at the location of Bujumbura’s public market which was destroyed by fire. We have created a new investment code to protect investors and we are particularly encouraging public-private partnerships. A public-privatepartnership bill is currently being prepared. European Times: What is your message to potential foreign investors? Issa Ngendakumana: Burundi has made impressive progress and I think that anyone who visits our country today and comes back six months from now will see even more improvements. Burundians are listening to our president’s message that we must all work together to rebuild our country. In Kayanza province where I am from, for example, we will open a new university next year. This is part of the government’s drive to make sure that every province has a university. We should all have faith in Burundi!

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Chamber Keeping Private Sector on the Move Christian Nkengurutse, Secretary-General, Chamber of Commerce and Industry, discusses recent developments in Burundi’s private sector. European Times: What is the mission of the Chamber of Commerce and Industry? Christian Nkengurutse: The main objectives are to defend the interests of the private sector and to improve the business climate so that the private sector can serve as a true engine of Burundi’s economic development. We also have a very important role to play in enhancing Burundi’s image worldwide in partnership with the government and other partners interested. European Times: How does the Chamber of Commerce and Industry promote the private sector? Christian Nkengurutse: We organise trade fairs and we are very active in representing Burundi’s private sector in the East African Community and COMESA. We also organise networking events and training programmes, and we communicate information about the private sector. Our main focus is to improve Burundi’s business climate, and we are very involved in the ‘Doing Business’ program, working with government representatives headed by the Second Vice-President of the Republic in charge of Social Economic Affairs. European Times: What are some of your recent successes? Christian Nkengurutse: In the World Bank’s ‘Ease of Doing Business’ report, Burundi was ranked 181 out of 183 countries in 2011 and this year we have raised the ranking to 159. This great improvement reﬂects the committed efforts of the private sector as well as the importance of regulatory reforms. We cooperate closely with the Government Investment Authority, both in efforts to improve the business environment and in providing support for investors. European Times: Can you single out some investment opportunities? Christian Nkengurutse: We have seen an impressive improvement in some public companies, including the govern-

© Otnaydur Dreamstime.com “We will continue to promote economic development and good governance, ﬁght corruption, improve the business climate and help make the world more aware of Burundi’s massive potential.”

ment-run tea board (OTB), which achieved a real breakthrough in sales and exports of tea, and SOSUMO, the country’s only sugar enterprise. We have also seen growth in companies in which the government has a share. All these publicly owned companies are set for privatisation, which will offer outstanding opportunities for investors. There is also great potential in public-private partnerships, for example in the mining and power sectors. European Times: What are some of the challenges Burundi is facing? Christian Nkengurutse: We need to balance the budget and revive the economy to reduce dependence on international aid. We have assistance for the ﬁrst quarter this year from global partners like the World Bank and the EU, but we need more support. We will continue to promote economic development and good governance, ﬁght corruption, improve the business climate and help make the world more aware of Burundi’s massive potential.

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Keeping Economic Growth on Track The government of Burundi expects the country’s economic growth rate to hit 6% in 2014, an encouraging increase over 2012’s estimated 4.2% and this year’s predicted 5.3% rate. Burundi has clearly made impressive progress in getting its economy back on track after a disastrous civil war which destroyed much of the country’s infrastructure and stalled economic growth in all sectors. The global ﬁnancial crisis, rising energy prices, drought and widespread poverty are other challenges Burundi’s economy has had to face in recent years, making the current positive outlook particularly praise-worthy. © Base International

In fact, the World Bank has ranked Burundi among the most improved economies worldwide concerning regulatory reforms, and particularly praises the country’s new tax-collection agency set up to help the government self-ﬁnance its budget. Such reforms have led to a boost in much-needed foreign aid, which the government has pledged to invest in road improvements and energy-generation projects designed to create jobs and kickstart the high-potential mining sector.

€1.52 billion in aid over the next five years At a donor conference in Geneva in late 2012, Burundi secured critical financial support to fund its plan to rise above least-developed-nation status and to self-finance its budget by 2025. Donors pledged more than €1.52 billion for Burundi over the next five years, well above the €1.14 billion sought by the government. This support reflects growing international confidence in Burundi and its leaders.

Many challenges remain, however, before Burundi’s economy can live up to its potential. A lack of sufﬁcient energy is a major stumbling block, since Burundi produces only around 40 MW of electricity per year. Even after around 20 MW in electricity imports from neighbouring Democratic Republic of Congo, Burundi still suffers periodic blackouts. Getting planned energy projects off the ground is crucial for Burundi’s economic growth, but the country’s hydropower potential is expected to attract increasing investor interest.

Agriculture dominates the economy Burundi’s economy is still dominated by agriculture, which accounts for over 30% of the country’s GDP. The main agricultural exports are coffee and tea, which bring in 90% of Burundi’s foreignexchange revenues. Other agricultural products include cotton, corn, sorghum, sweet potatoes, sugar cane, bananas,

cassava (manioc), beef, milk and hides. With its fertile soil, varied growing conditions and long agricultural tradition, Burundi has the potential to boost agricultural production, add value, diversify products and increase exports, all of which will help alleviate poverty and food insecurity. Other sectors are beginning to play a bigger role in Burundi’s economic mix. In 2011 the country’s GDP growth was fuelled mainly by stronger performance in services and by major foreign investments in the secondary sector, which offset a potentially disastrous 30% drop in agricultural output that year. Mining and tourism also have growth prospects. Burundi’s mining output remains small-scale but nevertheless rose in 2012, especially concerning the mining of cassiterite and columbite-tantalite ore. Exploration of Burundi’s mining assets shows the country has vast deposits of copper, cobalt, vanadium and especially nickel, all of which are waiting to be exploited once

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Real GDP growth (Eastern) 10%

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-2.5%

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the necessary infrastructure is in place. In the tourism sector, Burundi has signiﬁcant natural and cultural attractions but needs investment in hotel-room capacity and tourism infrastructure to make the most of its tourism appeal.

Upgrading investment environment To promote local and foreign investment in Burundi’s private sector, the government has strengthened regulations protecting investors’ interests, instituted onestop-shop services, streamlined processes

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for starting a business, and launched several other incentives. The country’s privatisation programme continues to move forward and the government is actively promoting public-private partnerships, particularly in the energy sector.

the country’s economic and political gains, promote inclusive economic growth, contain inﬂation, and strengthen policies designed to combat endemic poverty in rural and urban areas.

Despite its remarkable progress, Burundi remains a fragile state and still needs technical and ﬁnancial help from international partners as it works to transform its economy. Burundi’s economic and ﬁnancial programmes are being supported by the International Monetary Fund (IMF) under an IMF Extended Credit Facility, which aims to consolidate

Call for private-sector support In announcing Burundi’s long-term economic development plan leading up to 2025, Second Vice President Gervais Rufyikiri explained recently, “Burundi offers many economic opportunities, and the government will not waver in its efforts to develop these opportunities. Clear objectives should help us make an impact in key sectors and, with the help of our partners, allow us to make the most of Burundi’s comparative advantages. The government will take all necessary steps to improve our country’s economic performance, and we are counting on a dynamic private sector, the support of the general population, and sustained assistance from our development partners to help Burundi reach its goals.” Given the tremendous challenges Burundi has faced in recent years, its steady progress has earned the respect of foreign observers and partners.

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From Conflicts to Economic developments Burundi is emerging from a protracted civil conflict and political instability with the support of the international community. Thanks to the government’s commitment and the support of donors, the country has made significant progress toward nation building and major strides toward greater macroeconomic stability. These two developments have also reinforced the security situation, albeit fragile.

Since 2005, Burundi’s economic performance has been broadly satisfactory despite several external shocks, such as spikes in food and energy prices, and the global financial crisis. Gross Domestic Product grew at an annual average of about 4.2%, helping to reverse the declining trend in per capita income observed over the previous decade. This achievement reflects both substantial donor support and the implementation of sound macroeconomic policies and structural reforms. Indeed, Burundi benefitted from the Enhanced HIPC and Multilateral Debt Relief Initiative (MDRI) for about €640.97 million (US$833 million) in net present value terms in 2009. In addition, to compensate for the 2008 food and oil price shocks, donors scaled up their assistance. Debt relief together with the donors’ financial

support provided ample fiscal space for higher spending in priority sectors, critical to meeting the Millennium Development Goals. Nevertheless, because of its narrow export base, Burundi remains at high risk of debt distress. Against this background, maintaining a sustainable external and domestic debt position will require prudent fiscal policy and careful borrowing at highly concessional terms.

Structural reforms to enhance the economy The authorities have also been moving ahead with the structural reforms to enhance the resilience of the economy despite considerable challenges. The focus has essentially been on: the coffee sector, including by expanding the role of the private

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sector, creating an enabling business environment, public financial management, and revenue mobilisation. The coffee sector is a major source of export earnings and is the principal source of income for some 800,000 households. Some 41 out of 117 coffee washing stations have been privatised. In recognition of the role that the private sector should play in the economy, the authorities have pursued other reforms aimed at encouraging foreign direct investments. These reforms resulted in an improvement in Burundi’s rankings in the World Bank’s ‘Doing Business’ report.

The coffee sector is a major source of export earnings and is the principal source of income for some 800,000 households. Revenue reforms Given the dependence on foreign aid, and the scarcity of domestic resources, Burundi has placed strong emphasis on sound Public Financial Management (PFM) in order to ensure greater efficiency of the use of public resources. Early assessments indicate that substantial progress has been made on several aspects of PFM, particularly modernisation of the legal and institutional framework of PFM and budget programming

African Community (EAC) also offers a number of opportunities from regional investments in tourism and banking sectors. However, energy availability and a shallow financial sector remain the main bottlenecks to unlocking economic growth.

and preparation, as well as the introduction of a single treasury account. With regard to revenue collection, the establishment of the Burundi Revenue Authority (BRA) has been a resounding success and a rallying point for continued donor engagement. The BRA efforts in revenue mobilisation have helped to partially compensate for declining budget support in recent years and stands out as exemplary model. In fact, Burundi’s revenue reforms compare favourably with those undertaken by other developing countries including El Salvador, Tanzania and Vietnam. Looking ahead, Burundi’s mediumterm macroeconomic outlook remains challenging in many respects and is expected to be driven by the agricultural, construction, and tourism sectors. In addition, Burundi’s membership in the East

Burundi’s revenue reforms compare favourably with those undertaken by other developing countries including El Salvador, Tanzania and Vietnam. Despite remarkable progress, Burundi remains a fragile state. It still needs technical and financial support from the U.N. and other bilateral agencies to complete the transformation of its economy and strengthen its political institutions. In this regard, the overwhelming support of the international community at the Geneva conference on the financing of its poverty reduction strategy second generation is encouraging. And to support the authorities’ endeavours, the IMF will continue to play a catalytic role in promoting donor support, macroeconomic stability, capacity building through technical assistance, and financial support to meet balance of payments needs.

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Burundi

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Burundi Open for Business Burundi is open for business. The Burundi economy has been achieving slow but steady growth since the civil war ended in 2005, and investors who target Burundi today will ﬁnd vast opportunities waiting to be exploited. Burundi’s strategic location at the heart of the Common Market for Eastern and Southern Africa (COMESA) market and its membership in the Economic Community of the Great Lakes Countries (ECGLC) and East African Community (EAC) trade blocks add to its advantages for investors. Burundi’s new investment code offers reliable investor protection, international partners praise the government’s many economic reforms, and Burundi’s ‘Ease of Doing Business’ ranking continues to rise.

Investment Promotion Authority Burundi’s Investment Promotion Authority (API) has positioned itself as a reliable local partner, and its website outlines several promising projects open to FDI and partnerships. One initiative aims to build around 300,000 houses over a 15-year period in a public-private partnership. Demand for the new housing is very high, and investment guarantees are possible from the government and from SIP, the national real estate agency, which is set for eventual privatisation. Burundi’s energy sector is one of the country’s top investment opportunities. The COMESA Regional Investment Agency (RIA) reports that Burundi has around 300 MW of hydropower potential yet to be developed and notes that the country also has the right conditions for solar

Opportunities in all sectors

Tourism projects in Burundi noted by RIA include developing a major resort on the shores of Lake Mtirikwi on 100 hectares in the Masvingo area. Burundi is looking for investors in hotels, regional tourism offerings, conference centres, water-sports facilities on Lake Tanganyika, and spas.

RIA also singles out opportunities in Burundi’s ICT, transport, tourism and manufacturing sectors. Concerning ICT, Burundi needs new ICT infrastructure, including fibreoptic networks, and its high-speed Internet market is at the very early stages. In transport, the government is expanding and modernising the port of Bujumbura, developping passenger and cargo transport on Lake Tanganyika, and creating coldstorage facilities at the port and at the international airport.

In manufacturing, RIA points out that Burundi particularly wants to attract investment in food-processing for the domestic market and in the production of construction materials, chemicals (including chemical fertilisers), textiles and shoes, pharmaceuticals and consumer goods, all of which are now mainly imported. Burundi is also promoting investment in its high-potential agriculture sector. The Investment Promotion Authority (API) can provide up-to-date information for investors on these and many other projects in Burundi today.

and wind power. Burundi’s Investment Promotion Authority cites several planned hydropower projects open to investors.

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Business & Investment xxxxxx Opportunities

Ofﬁce Burundais des recettes

The newest revenue Authority in East Africa, the First revenue Authority in Francophone Africa In 2009, and with the support of the government of the UK through its Department for International Development (DFID), the Government of Burundi set up the Office Burundais des Recettes (OBR). This was the first example of a semi-independent revenue authority established along business lines (essentially an Anglophone concept) being created in a Francophone country. Burundi recruited an expatriate as the first Commissioner General of the new institution.

Kieran Holmes, Commissioner General

Since its inception, OBR has demonstrated tremendous progress with a revenue collection that has almost doubled, going from €147.82 million (BIF301 billion) in 2009 (the last year of the old regime) to €258.83 million (BIF527 billion) in 2012 with a set target of €305 million (BIF621 billion) for 2013. This strong revenue growth has enabled the government of Burundi to address the urgent needs of its citizens and has helped to reduce its dependency on international development assistance, as the country is now able to provide improved infrastructure. The government has been able to increase agriculture’s share of the national budget to 11.8% from 7% in 2012. The priority is to improve food security for the 90% of people who live off subsistence farming. OBR has not only focused on optimising revenue collection on behalf of the State but the newest tax administration in

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UK-Africa Minister, Belgian, EU and French Ambassadors and other diplomats visit OBR HQ to demonstrate full support for reforms.

the East African Community (EAC) has introduced many reforms with the objective of improving the business climate in Burundi and providing quality services to taxpayers. Having co-located with the Commercial Tribunal and collaborated on business registration, OBR is now able to offer taxpayers a Taxpayer IdentiďŹ cation Number (TIN) in 30 minutes or less. It is now possible for a business to complete its entire registration process within one hour in Burundi, assuming correct documentation is submitted.

OBR Headquarters in Bujumbura

OBR has worked to extend its hours of operations and its service is now available during lunchtime and throughout the day from 07.30 am till 5.30 pm at the main offices and up to 8 pm at the Customs clearance offices. There are plans to provide a 24-hour service in the medium term. OBR initiated a review of the legal framework and worked closely with the Ministry of Finance and other stakeholders in the private and public sectors to modernise the tax laws. A new VAT law, an Income Tax law and a modern Tax Procedures law were produced and approved by the legislature. The new income tax contains a new personal and corporate tax rate of 30%, down from 35%. All the laws seek to harmonise the tax environment of Burundi with best international and regional practices and they work to dramatically improve the business environment in Burundi. OBR receives strong political and economic support from the international community. Trade Mark East Africa (TMEA) 1 is OBRâ&#x20AC;&#x2122;s main development partner and is funded by a range of development agencies, primarily from Belgium and the UK, with the aim of growing prosperity in East Africa through trade. TMEA works closely with EAC institutions, national governments, the private sector and civil society organisations.

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The new One-Stop Border Post at the main border crossing with Tanzania (Kobero) built with TMEA support

Taxpayer reception area at OBR HQ

TMEA seeks to increase trade by unlocking economic potential through: ■ Increased market access; ■ Enhanced trade environment; and ■ Increased quality and price of products.

With the support of the African Development Bank, another OSBP will become operational in May 2013 at Ruhwa on the border with Rwanda.

USAID has separately provided ﬁnancial support to improve OBR’s communications capacity. With support from TMEA, OBR has introduced new One-Stop Border Posts (OSBPs) with neighboring countries such as Tanzania and Rwanda. Whereas some are already operational like the Gasenyi/Nemba OSBP, built with support from the African Development Bank, and more will become operational in 2013 such as the Kobero/Kabanga OSBP where 80% of the goods that enter Burundi by road transit the border.

All of these OSBPs have been and will be of great impact with regard to trade facilitation as all the requested formalities at the borders will be done once only, thus saving time and money.

OBR will continue to promote trade, transparency and strong revenue growth for the strengthening of the state and the provision of needed infrastructure for investment promotion. In 2013, OBR will increase its reliance on computerised systems. At Customs, OBR has moved to the new ASYCUDA WORLD system. This web-based system allows importers to manage customs declarations from their own ofﬁces and it permits OBR to provide faster and better services to taxpayers. In July 2013, a second phase of support will see other cross-border agencies using ASYCUDA WORLD and this will permit the introduction of a single window at border posts, where all border agencies are using the same system and providing a faster and more integrated service to importers.

Kieran Holmes during a press interview in Bujumbura

The Domestic Taxes department has been computerised with regard to VAT and taxpayer registration and there are plans to purchase a fully integrated system later this year. OBR’s back ofﬁce activities such as ﬁnance, procurement and asset

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it is expected that the average clearance time of commercial imports will reduce from an effective two-day transaction to 8 hours and the average time taken to register a taxpayer will reduce from 30 minutes as it is now to 15 minutes. A call centre is being created to interact faster with taxpayers and the general public. Capacity building inside OBR and with its main stakeholders will continue and better humanresources management will ensue. All human-resources policies and procedures are being reviewed in line with best international practices in order to produce better service delivery and maintain OBR’s position as the employer of choice in Burundi. An OBR ofﬁcer addresses the public at a taxpayer information meeting.

management are now fully computerised and its human resources function is currently being added to the list. Finally, the USAID-ﬁnanced RADDEX system has enabled Customs data sharing with other sister EAC revenue authorities from the port of entry into the EAC to the point of destination. All the above-mentioned changes have impacted positively on the improvement of the business climate in Burundi, as shown in the World Bank’s ‘Doing Business Index’ report for 2013. Burundi rose 13 places in the Index to 159 and was the only African country in the top ten reformers in the 2013 report. OBR has ambitious plans to further drive down both the number of procedures and the time taken to complete them. OBR has set out its key-strategic objectives in its five-year Corporate Plan (2013-2017) which may be downloaded from the website (www.obr.bi). As stated, 2013 is the year of improved service delivery and many activities like the decentralisation of services to the regions, implementation of the Authorised Economic Operator concept and the rollout of better computer systems are already underway. As an illustration of improved service delivery,

Inside the One-Stop Border Post at Kobero (built with TMEA assistance)

As a means of making Burundi a more attractive destination for foreign direct investment, OBR is preparing to enter into negotiations for agreements with regard to the exchange of information with selected international partner countries. A network of agreements for the avoidance of double taxation is a vital weapon in the efforts to provide conﬁdence to international investors and requests have already been made to long-standing development partners for the negotiation of such agreements. OBR will continue at the forefront of Burundi’s poverty reduction and investment promotion strategy. It will continue to promote trade, transparency and strong revenue growth for the strengthening of the state and the provision of needed infrastructure for investment promotion. The material for this article was produced by OBR and does not necessarily bind any of the support agencies whose logo is reproduced herein.

Emmaus Pathway Kigobe - Bujumbura Tel: +257 22 27 6142 - +257 22 27 6061 info@obr.gov.bi www.obr.bi

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• Development Strategies Putting Burundi on the Right Path • Central Bank Governor Outlines Financial-Sector Progress • Financial-Sector Reforms Praised by International Observers

Finance

“Improving the business climate means we will attract more of the FDI we need to develop our economy and boost our exports.” Tabu Abdallah Manirakiza, Minister of Finance and Economic Development Planning

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Burundi

development Strategies Putting Burundi on the right Path Tabu Abdallah Manirakiza, Minister of Finance and Economic Development Planning, discusses Burundi’s economic strategies. European Times: What are your priorities as minister? Tabu Abdallah Manirakiza: This ministry is in charge of public finances as well as economic-development planning. My first task is to promote Burundi’s economic development, since this will generate revenues for the state. We are particularly focussing on ensuring adequate energy for the growth of our main sectors. Information technology is another important vector of growth, and we will foster ICT development, particularly a fibreoptic network in Bujumbura, through a public-private partnership supported by the World Bank. Another priority for this ministry is to manage public finances with the help of our international partners. We are also working on a financial-inclusion strategy to give more people access to credit. European Times: What progress have you made in reaching these goals? Tabu Abdallah Manirakiza: We have been praised by our international partners for our efforts to strengthen the economy under difficult circumstances, and Burundi has improved its international ‘Ease of Doing Business’ ranking and continues to do so. Improving the business climate means we will attract more of the FDI we need to develop our economy and boost our exports.

Tabu Abdallah Manirakiza, Minister of Finance and Economic Development Planning

European Times: What are the main challenges Burundi faces? Tabu Abdallah Manirakiza: The greatest challenge is a lack of reliable energy. We have devoted a large portion of the state budget to developing thermal energy because it is necessary for the country’s survival. Energy prices in Burundi are low, which discourages investors, but raising prices would be difﬁcult for our vulnerable population. European Times: What is your personal message to potential international investors, partners and visitors? Tabu Abdallah Manirakiza: Travellers should know that whatever media might report, Burundi is now safe, with

a democratic government and a free press, and it is really moving forward. In just one example, we have built more schools over the past five years than over the previous 50 years! For investors, Burundi is a high-potential virgin market. Magnificent Lake Tanganyika, for example, has not yet been exploited. We also have many natural resources waiting to be developed. Burundi is managing its finances better than ever before, as the African Development Bank recently recognised by increasing its support. In addition, a 2012 report by Transparency International showed that Burundi is the second-least-corrupt country in the East African Community thanks to new anti-corruption initiatives like the Burundi Revenue Office. Burundi is definitely on the right path.

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Central Bank Governor Outlines Financial-Sector Progress Jean Ciza, Governor of Burundi’s Central Bank, discusses the bank’s goals for the future. European Times: What are the Central Bank’s main tasks? Jean Ciza: The Central Bank issues currency, supervises Burundi’s commercial banks, promotes a sustainable financial sector through providing supervision and regulation, supervises microfinance activities, serves as Burundi’s monetary authority concerning monetary policy, and promotes price stability.

“We are ready to help any new investors and we want them to know that Burundi has made great progress in upgrading the business environment.” European Times: What are some of the Central Bank’s recent accomplishments? Jean Ciza: The Central Bank recently created two new instruments to strengthen the financial sector. One is an interbank market for banks needing extra liquidity so that they can provide more project financing, and the other is to provide financing for the development of Burundi’s coffee industry. The Central Bank participated in the government’s creation of a financialsector development strategy, and we are helping to modernise payment systems. Burundi’s banking sector in general is currently undergoing extensive modernisation, including computerisation of services. We are now revising regulations concerning foreign-currency transfers in order to streamline the process, and we participated in the revision of the Banking Act of 2003 to adapt it to current realities.

Jean Ciza, Governor Central Bank of Burundi

European Times: What are your main goals for the Central Bank? Jean Ciza: Through the current modernisation programme we aim to enhance connections between the Central Bank and Burundi’s commercial banks as well as further integrate Burundi’s banking sector into that of the East African Community as a whole, to prepare Burundi for EAC monetary union and an EAC Central

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Banque Commerciale du Burundi

Well-Established Bank Known for innovation Banque Commerciale du Burundi (Bancobu) has been providing high-quality banking services in Burundi for 53 years. The bank, now with shareholders from the public and private sectors, achieved around €76.3 million in assets in 2012 and has developed a network of 30 outlets around the country.

Bank by 2022. Another goal is to provide banking services to more people in Burundi. We also plan to increase our supervision to further strengthen the banking sector. We are currently upgrading the Central Bank’s human resources and we are looking for software engineers to help us modernise our payment systems. We are working with many international institutions concerning our capacity-building and human-resources development, including the World Bank, the IMF, the National Bank of Belgium and the Bank of France.

“Burundi’s banking sector in general is currently undergoing extensive modernisation, including computerisation of services.”

Sylvère Bankimbaga, Deputy General Director, explains that Bancobu has ambitious plans for this year and beyond and has designated 2013 as its ‘Year of Innovation’. He says, “We offer all the classic banking products as well as special products like individual and corporate savings programmes and a ‘Group Credit’ scheme targeting big companies. This year we are developing new mobile-banking Sylvère Bankimbaga, Deputy General services, more Internet-banking Director products, bank cards which allow our clients to access their accounts 24h/7days, and VISA cards which can be used outside the country.” Bancobu hopes to serve two million mobile-banking customers over the next two to three years. Bancobu is currently ranked among the ﬁrst three banks in Burundi’s banking sector. The bank is looking for strategic partners to help it reach its goals. Sylvère Bankimbaga points out, “We maintain the highest international standards. Bancobu has positioned itself as a transparent and reliable local partner for investors looking to take advantage of Burundi’s many opportunities.”

European Times: What do foreign financial-sector enterprises need to do to operate in Burundi? Jean Ciza: The Central Bank licenses all entries to the banking sector and we have set conditions for licensing that are designed to enhance banking stability. We are ready to help any new investors and we want them to know that Burundi has made great progress in upgrading the business environment. The public and private sectors here are working together to achieve economic progress, and we welcome private investors.

84 Chaussée Prince Louis Rwagasore Bujumbura Tel: +257 22 22 6807 info@bancobu.com - www.bancobu.com

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Financial-Sector reforms Praised by international Observers The World Bank has ranked Burundi among the most improved economies worldwide concerning regulatory reforms, while the IMF has praised the Burundi government’s progress in upgrading the financial sector in particular. An IMF report released in February 2012 cited Burundi’s increase in revenue mobilisation, implementation of several public financial-management reforms, efforts to boost the autonomy of the Central Bank, and successful monetary and fiscal policy. One major step forward has been the reform of Burundi’s tax administration, the Burundi Revenue Authority (OBR). Through a focus on good governance, transparency, improved human resources and upgraded legislation, the OBR has been greatly strengthened and its authority expanded. The OBR has implemented new revenue-collection and management systems, new legislation for medium-sized and large taxpayers, new auditing practices, upgraded customs systems, new financial-management and budgeting procedures, a modern code of conduct, and a new ICT system for collecting taxes.

Signiﬁcant increase in tax revenues As a result of these improvements, the OBR collected 30% more tax revenues in 2011 than in 2010 and a further 20% more in 2012, for a

boost in revenues of around €99.1 million. As the IMF points out, this growth in tax revenues is the fastest in the East African Community (EAC). With Burundi’s domestic revenues totalling €233.2 million and around 50% of the country’s budget funded by donors, the extra €99.1 million in annual revenues is a huge increase, enough to expand public services, make major infrastructure investments and reduce foreign aid. The OBR has also been the key driver of Burundi’s jump in the World Bank’s ‘Doing Business’ ranking from 172 in

2012 to 159 in 2013, one of the ten highest increases in the world. Challenges still remain, including inﬂation and the drop in the value of the Burundi franc. A March 2013 report by the IMF noted that Burundi faced several difﬁcult conditions in 2012, including rising fuel and food prices and declining global coffee prices. In addition, international partners’ budget support dropped from 5% of Burundi’s GDP in 2010 to 3.2% in 2012. As H.E. Tabu Abdallah Manirakiza, Burundi’s Minister of Finance and Economic

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Development, commented in mid-2012, “We are facing high inﬂation because of the lack of foreign currencies due to the economic crisis in the world. We do not have enough from our partners and that is why we are suffering from a lack of hard currencies like dollars.”

KCB Bank Strong Local Banking Partner with World-Class Expertise

While Burundi still faces some stumbling blocks, it has made impressive progress in strengthening its ﬁnancial sector.

KCB Bank, founded in Kenya in 1896, is now the biggest bank in East Africa. It has independent operations in Kenya, Tanzania, Uganda, Rwanda and South Sudan as well as Burundi, where KCB entered the market in May 2012.

The authorities responded to these shocks by allowing greater exchange-rate flexibility, tightening monetary policy and temporarily removing taxes on food products. As a result, inflation declined sharply to 11.8% in December 2012. Burundi continues to reduce its budget deficit and move forward with additional financial-sector reforms, including aligning income and excise taxes with EAC harmonisation guidelines, streamlining the tax-exemptions regime, amending the value-added tax law, and revising the taxation regime for small taxpayers.

The government has pledged to implement even more reforms to increase revenues and improve cash-flow management. Additional public-finances reforms The government has pledged to implement even more reforms to increase revenues and improve cash-flow management through its Public Financial Management Reform Programme for 2012 to 2014. The IMF’s March 2013 report notes that the Burundi Regulatory Authority is making progress in dealing with inconsistencies between exemptions under the tax code and under the investment code, and that customs procedures on Burundi’s borders have been made much more efficient. The IMF points out that priorities for Burundi’s government are to reinforce debt management, develop a stronger legal framework for public-private partnerships, maintain a tight monetary policy until inflation drops further, and continue to strengthen the Central Bank’s capacity. International observers agree that while Burundi still faces some stumbling blocks, it has made impressive progress in strengthening its financial sector.

The bank has over 200 Correspondent Banking relationships with major banks across the world. “Our goal is to be the number one bank of choice in the East African Community. We play an important role in trade and development facilitation and support many community-service projects,” explains Managing Director Gloria Nyambok.

Gloria Nyambok, Managing Director

In Burundi, KCB Bank has ambitious growth plans and will open two new branches in Bujumbura this year. KCB Bank Burundi offers both local knowledge and the efficiency and expertise of the KCB network. Gloria Nyambok says, “We want to deepen access to finance here in Burundi. We have developed an Agent Banking Platform which brings mobile banking services to rural residents. In addition to regular banking products, we also provide a wide range of specialised services including credit, asset-based financing and corporate financing, as well as custody services.” KCB Bank is a key player in the Burundi banking sector and is a member of the Burundi Banking Association. KCB Bank welcomes the chance to partner with international investors. Gloria Nyambok says, “We meet the highest international standards. KCB Bank provides value for money.”

Boulevard Patrice Lumumba P.O. Box 6119 Bujumbura Tel: +257 22 27 7580/83/84 Kcbbankburundi@bi.kcbbankgroup.com www.kcbbankgroup.com

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• Stepping up Trade and Adding Value • Access to 450 Million Consumers

Trade & Industry

“We welcome joint-venture partnerships which will help bring in new technologies as well as funding and will further open up our markets.” Victoire Ndikumana, Minister of Commerce, Industry, Postal Services and Tourism

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Stepping up Trade and Adding Value Victoire Ndikumana, Minister of Commerce, Industry, Postal Services and Tourism since 2010, discusses Burundi’s efforts to increase its regional and international trade. European Times: What are some of your ministry’s key goals? Victoire Ndikumana: Burundi currently has a trade deficit and we need to increase our exports significantly. We hope to expand our trade with other East African Community countries now that we have harmonised our regulatory environment to fit EAC standards. Burundi’s main export products are coffee and tea, which we export internationally as well as regionally, but we need to add value to them instead of exporting them as raw materials. In addition, there is great potential for Burundi to export its other high-quality agricultural products like rice, beans and fruit, especially given growing demand for organic products. The ministry is supporting many agricultural projects. European Times: Why should foreign investors target Burundi? Victoire Ndikumana: We welcome joint-venture partnerships which will help bring in new technologies as well as funding and will further open up our markets. The Ministry of Trade and Industry is currently funding several transport-infrastructure projects and we are building a refrigeration unit at the international airport; these initiatives will enhance Burundi’s investment attractions. Burundi also offers

Victoire Ndikumana, Minister of Commerce, Industry, Postal Services and Tourism

a number of investment incentives, including duty-free imports and tax breaks.

can be developed for spa tourism, and of course our country is ideal for ecotourism thanks to its many unspoiled natural areas.

European Times: Since you also oversee the tourism sector, what are some investment opportunities in that industry?

European Times: What is your personal message to potential investors?

Victoire Ndikumana: We are targeting the middle and high-end tourism markets, to focus on quality rather than quantity. Burundi is ﬁlled with tourism potential, from Lake Tanganyika to an area in the southern part of the country where there is very pure water and rich plant and bird life. We want to attract investment in resorts there and we particularly welcome international hotel groups. Burundi also has many natural springs which

Victoire Ndikumana: Over the past two years, the government of Burundi has been working very hard to improve the country’s business climate and we have achieved impressive success. Now it takes only a day to start a business, we offer one-stop-shop investor services, and Burundi has been ranked one of the top 10 reformers in the global ‘Doing Business Report’. Burundi is a small country with huge potential.

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Access to 450 Million Consumers Burundi’s government is working hard to strengthen the country’s regional and international trade in a bid to boost export revenues. Burundi suffers from a chronic trade deﬁcit but is gradually redressing the balance. In 2012, the country managed to narrow the deﬁcit to around €428 million compared to around €433.3 million in 2011. Another positive sign is that Burundi’s export revenues rose by an impressive 23% in 2012, although import costs rose by 14% at the same time. Burundi’s main export partners, as of 2011, were Germany (15.6% of total exports), China (10.5%), Sweden (9.5%), Belgium (9%), Pakistan (7.4%), the US (7.4%), and France (4.3%). Its main source of imports in 2011 was Saudi Arabia (17.1% of the total), followed by Belgium, China, Uganda, Kenya, Zambia, the US, France and India. Attracting more FDI, including in energy and infrastructure projects to support industrial activities and trade, is crucial for Burundi in its drive to develop its economy.

Privileged access to regional markets Burundi is now a member of the ECGLC (Economic Community of the Great Lakes Countries), the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC), which means that companies operating in Burundi have privileged access to more than 20 countries with a total of more than 450 million consumers. Burundi also offers a huge domestic market which is growing at around 3% per year. Burundi’s location makes it a natural hub for trade coming from Rwanda and

Uganda through the port of Bujumbura to reach markets in southern Africa by way of Lake Tanganyika. Burundi is also well placed for trade between the Democratic Republic of Congo and East Africa. To make the most of this geographic advantage, Burundi is focussing on developing transport ties to regional markets, including cargo transport on Lake Tanganyika. The government also wants to diversify Burundi’s exports, which are currently dominated by tea and coffee. The Burundi Investment Promotion Authority (API) singles out a number of high-potential projects in the agriculture sector, including one to build plants to process locally grown passion fruit; Burundi now produces around 250 tonnes of passion fruit per year and exports around 80% of it. Joint ventures with local enterprises are welcome.

The government also wants to find investors for three proposed pineapple-processing plants and for a cassava-flour facility in the Kumoso area which will eventually produce more than 15,000 tonnes of cassava flour per year. Burundi’s cassava production now totals around 600,000 tonnes

Maison ElectroXérographique Boulevard de l’Indépendance B.P. 3677 Bujumbura Tel: +257 22 21 6117 direction@mexburundi.com www.mexburundi.com

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per year, and the country does not yet have a cassava-processing plant. Another project is to set up plants to process tomatoes and produce over 12,000 tonnes of tomato concentrate per year. Burundi does not yet have a tomatoprocessing plant and imports around 75,000 tonnes of tomato concentrate per year.

Diversifying industry and adding value Diversifying industrial activities and focussing more on adding value are top priorities for Burundi today. The country’s current industries are manufacturing light consumer goods such as blankets, shoes, soap, and beer; the assembly of imported components; public-works construction; and food-processing. The Investment Promotion Authority (API) notes particularly attractive opportunities in fertiliser production using phosphates available in northern Burundi, cement plants using materials found in north-eastern Burundi, tea and coffee processing, and textiles plants using locally grown cotton. A top priority for the government is to develop the mining sector. Burundi has varied mineral resources, including signiﬁcant deposits of nickel. The government has revised the mining code to make it more investor-friendly and opened the mining sector to foreign investors in 2007. Investors in Burundi today will have access to a virgin market with virtually untapped opportunities in many sectors.

Savonor dynamic Local Enterprise Boosting Exports Savonor, a family-owned business founded in 1970, has transformed itself from a small soap factory into a dynamic, rapidly growing enterprise with a diverse portfolio of products, three production facilities and several oil-palm plantations. Savonor produces soaps it exports to neighbouring markets, palm and sunﬂower cooking oil, margarine, Aquavie mineral water, Boom fruit juices and more. Matthias Kuntze, Chairman, adds, “We handle our own packaging and we have a ﬂeet of trucks for distribution. We will continue to expand our product lines.”

Matthias Kuntze, Chairman

Palmoleine, a healthier palm oil Savonor lives up to its motto, ‘German quality made in Burundi’. The company focusses on high-quality products that are beneficial to consumers and the local environment. One of its products is Palmoleine, a tasty, cholesterol-free refined palm oil. Savonor is also known for its Agri-2020 community-service initiative to benefit local farmers. Matthias Kuntze says that Savonor will expand its production facilities, invest in new state-of-the-art equipment and continue to increase its exports. He adds, “We are market leader in Burundi, but to stay number one we have to be innovative. We recently invested in new machinery to increase our efficiency, quality, capacity and energy-savings. In three to five years, we want to be one of the region’s leading soap, oil and consumer-products manufacturer and exporter, and we aim to form joint-venture partnerships in 2015.”

Chaussée d’Uvira - Bujumbura Tel: +257 22 22 3860 info@savonor.com - www.savonor.com

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• Agriculture is Driving Force Behind Economy • Making the Most of Vast Agriculture Potential

Agriculture & Food

“For investors in agriculture, Burundi has the right soil, climate, natural resources, skilled labour and strategic location.” Odette Kayitesi, Minister of Agriculture and Livestock

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Agriculture is driving Force Behind Economy Odette Kayitesi, Minister of Agriculture and Livestock, explains that agriculture is Burundi’s life blood and the driving force behind the country’s economy. She outlines her ministry’s policies and projects aimed at fostering the development of this key sector.

and individual countries, including Belgium, as well as other global funding partners. However, in our development plan for agriculture for the period 2012 to 2017, we need much more funding to reach our goals, and we are counting on private-sector support.

European Times: What are your ministry’s main goals for developing the agriculture sector? Odette Kayitesi: Burundi is predominantly an agricultural country and over 90% of the population is involved in farming. Our farmers breed cattle and grow food crops or other crops such as coffee, tea and cotton to generate revenues. Much of our agriculture is still at the subsistence level, however, our main goal is to make the most of Burundi’s significant advantages in the agriculture sector to move beyond subsistence farming. Our first priority is to produce enough food to achieve food security for Burundi’s growing population, and then we need to step up our production of agricultural products for export and to add value to our agricultural products. This means increasing production, implementing mechanisation and improving our infrastructure. We have obtained over half of the funding we need for our current national agricultural investment programme and we have received important commitments from the World Bank, the EU

European Times: What are the main challenges the agriculture sector faces? Odette Kayitesi: In addition to the poverty of our population and our need for funding to implement modern machinery and farming techniques, Burundi has faced periods of droughts and floods and struggles with crop diseases. We are working with local, regional and international partners to find solutions to these problems. Burundi also needs to increase the amount and variety of its agricultural exports. Our main exports today are coffee and tea, but we have the potential to produce many more crops for export. In addition, climate change has caused new problems in Burundi’s agriculture sector, as it has in other countries, and to deal with these new challenges means that we must all work together for the benefit of the world in general and for Burundians. European Times: Why should investors target Burundi’s agriculture sector? Odette Kayitesi: Burundi is now stable and at peace, and there are many opportunities for exporting agricultural products from Burundi to Central and East African markets

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and beyond. Burundi offers fertile soil, adequate water, a skilled workforce in agriculture, and varied conditions that allow to produce a wide range of crops, from rice and maize to bananas, oil palms, soybeans, sugarcane, peas, tea and coffee, among others. Burundi also has the potential to produce new kinds of crops, including cocoa. Most of Burundi’s crops are grown organically, which is a big advantage given the growing demand worldwide for organic food crops. In addition, our tea, coffee, potatoes and other crops are well known for their unique character. I recently signed a Memorandum of Understanding with international partners for a coffee project, Kahawatu, which aims to produce very high-quality coffee in Burundi. We would like to double or even triple Burundi’s coffee production over the next ﬁve years along with upgrading quality. Burundi’s ﬁsheries sector also has strong growth prospects; there are

many ﬁsh in Burundi which do not exist anywhere else. European Times: What about livestock production? Odette Kayitesi: Livestock production is another high-potential activity which suffered during the war years but is now being revived. We are in the process of providing farmers with new breeding stock to help get livestock operations off the ground. For example, we are distributing 230 milk cattle to farmers in the Isale and Mubimbi communities outside Bujumbura so that they can produce milk for local consumption and for markets in the capital. The manure from these cattle can be used as natural fertiliser. European Times: How can foreign investors enter the market? Odette Kayitesi: There are many public-private partnership opportu-

nities in Burundi’s agriculture sector, and we are in the process of privatising various enterprises which will also offer investment potential. Our ministry organises a meeting every month with representatives of the private sector to discuss future developments and investment opportunities in the agriculture and food-processing industries. We also welcome investment in research activities in the agriculture sector, which is crucial for the sector’s sustainable growth. We would like to see more projects like the International Rice Research Institute’s research centre here in Burundi. European Times: What is your personal message to investors? Odette Kayitesi: For investors in agriculture, Burundi has the right soil, climate, natural resources, skilled labour and strategic location. We welcome foreign investors to help us realise the great potential of our agriculture sector.

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Making the Most of Vast Agriculture Potential Burundi is a natural for agriculture thanks to its fertile soil which allows for crops to be grown organically, temperate climate, varied growing conditions supporting a wide range of crops, ample water and long farming tradition. Agriculture is the country’s main GDP contributor and source of export revenues as well as the top employer, providing work for over 90% of the population.

National Agriculture Investment Plan The Burundi government’s new National Agricultural Investment Plan (NAIP) for 2012 to 2017 aims to ensure that the agriculture sector will produce enough food for all the people of Burundi as well as generate more export revenues. The plan was launched with the support of the Comprehensive Africa Agriculture Development Programme (CAADP) and COMESA. Through this plan, the percentage of the state budget allocated to agriculture was raised to 10% last year. The NAIP’s four main goals are to provide food security for all, boost household incomes, increase revenues in the agriculture sector, and produce more raw materials for Burundi’s industrial sector while creating jobs in agricultural processing and services. © Base International

The plan’s priorities are to increase and improve crop and livestock production and to strengthen the humanresources capacities of national institutions and farmers’ organisations, with an emphasis on promoting a greater role for women in agricultural development. Spearheaded by the revamped Ministry of Agriculture and Livestock, the NAIP will be overseen in partnership with other ministries to address such issues as land tenure and environmental problems, infrastructure, and factors linked to marketing and the development of agribusiness. The NAIP has four main areas of concentration: sustainable growth in production and food security; professional training of farmers and promotion of innovation; development of value chains and agribusiness; and institutionbuilding for public-sector organisations.

With the help of the World Bank, the government has adopted a results-based strategic-planning system and budget plan to make sure the NAIP moves forward. To achieve the NAIP’s goals, Burundi has many needs, including betterquality seed stock and livestock, modern equipment, more value-added production, modern treatments for plant and animal diseases and pests, technical support for farmers, new ways of responding to climate-change problems, renewableenergy sources for agriculture and agri-business, better infrastructure, and more ﬁnancing options. Private-sector support is essential if the government’s agriculture development programmes are to succeed, and the NAIP calls for new investment incentives as well as public-private partnerships in the agriculture sector.

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Eastern African coffees. This quality is often lost, however, through poor processing methods. The USAIDfunded Burundi Agribusiness Project, which aims to upgrade the production of coffee, tea and other crops, has brought more modern coffee-washing stations to Burundi, a step towards ensuring ﬁne coffee not only grown but also processed in the country.

Bringing added value to Burundi’s coffee Some progress is already being made, particularly in the high-proﬁle coffee sector, which is the source of more than 86% of Burundi’s export earnings and 11% of its GDP along with providing employment to around 590,000 small farmers. In February 2014, Burundi will host the African Fine Coffee Conference and Exhibition, Africa’s biggest coffee-oriented

trade show, which will bring over 2,000 regional and international coffee roasters, traders, producers, professionals and connoisseurs under one roof. The choice to hold this major event in Bujumbura for the first time reflects growing recognition of the quality of Burundi’s coffee. Coffee from Burundi is typically full bodied, balanced and brightly acidic, with a sweet flavour and an interesting wild note often associated with

Improving Burundi’s coffee is the impetus behind the Kahawatu project, a joint effort between the government and the Geneva-based Kahawatu Foundation, with support from the International Fund for Agricultural Development (IFAD). When Minister of Agriculture and Livestock Odette Kayitesi inaugurated the project in November 2012, Hamed Haidara, Country Director IFAD in Burundi, commented, “The cooperation between the Ministry of Agriculture and Livestock and Kahawatu represents the ﬁrst concrete step in the implementation of the action plan of the NAIP regarding the development of public-private partnerships in agriculture.” Joseph Nitrabampa, President of the non-profit Burundi Coffee Growers Confederation, says, “This project demonstrates the government’s commitment to developing this key sector. With this initiative and the support of IFAD, Burundi’s coffee production will double or even triple.” With more efforts like this one, Burundi will be able to feed its people and live up to its exceptional agricultural potential.

B.p. 192 Bujumbura tel: +257 79 33 1406 nbutoyi@yahoo.fr © Base International

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Well-Established Tea Enterprise Offers High-Potential Opportunity The Office du Thé du Burundi (OTB) has been promoting the production of high-quality tea in Burundi since 1965. This state-owned organisation, now set for privatisation, has 900 hectares of tea plantations throughout Burundi and works with tea farmers on an additional 2,000 hectares. OTB also operates five tea-production plants around the country to process tea from neighbouring plantations. General Manager Anicet Tuyaga explains that OTB currently produces around 9,000 tonnes of several grades of black tea per year and achieves an annual turnover of around €20.7 million. “We want to double our production over the coming 10 years, and we can do this through improving the operations in our plantations,” he adds. OTB has other ambitious goals, including obtaining ISO 9001 certification for all its plants. Anicet Tuyaga points out, “We want to increase capacity among our tea-growers and we would like to add value to our teas. There is enormous potential because Burundian tea is of very high quality thanks to our acidic soil and excellent growing condi-

tions. Burundian tea has a ﬂavour you will not ﬁnd anywhere else in the world.”

Great potential for ‘made in Burundi’ tea Because of its exceptional quality, Burundi tea has what it takes to make a name for itself in global markets. Currently around 3% of OTB’s tea is sold in the domestic market with the rest sold by auction in Mombasa, Kenya, and blended with other teas. Anicet Tuyaga says, “Our tea is added to teas from other countries to boost the quality of the blend. We would like to see our tea marketed abroad on its own as a true Burundian tea and recognised for its unique ﬂavour.” Forward-thinking investors will ﬁnd an outstanding opportunity in OTB’s privatisation, since in addition to its excellent tea, the company has a very experienced management team as well as established plantations and plants. Anicet Tuyaga says,

“I would like to see a proper, sustainable privatisation of OTB that will protect the rights of local farmers, upgrade our plants, increase our production and produce high-quality tea with a ‘made in Burundi’ label. We welcome foreign investors and can even adjust our processes to produce a tea that suits a company’s speciﬁc needs.” As the international tea industry continues to grow, OTB is a reliable source for a unique high-quality tea with a true taste of Burundi.

Burundi Tea Authority B.P. 2680 Bujumbura Tel: +257 22 22 4288 otb@cbinf.com

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â&#x20AC;˘ Vast Potential in Untapped Energy, Mining Resources

Energy & Mining

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Vast Potential in untapped Energy and Mining resources Energy and mining are set to become key economic drivers for Burundi. The country’s energy sector is signiﬁcantly underdeveloped, which has in turn stalled growth in the mining sector. The Burundi government liberalised the power and water industries in 2000, opened the mining sector to foreign investors in 2007, and continues to implement new regulations designed to attract local and foreign investment in energy and mining projects. Burundi’s main energy provider is REGIDESO, the national water and electricity utility. REGIDESO has installed energy capacity of 35.8 MW, of which 30.8 MW comes from hydropower plants and 5.5 MW from thermal plants. REGIDESO also imports power from the Democratic Republic of Congo’s SNEL. Around 13.3 MW of Burundi’s available electricity is produced by the Ruzuzi II hydropower plant, which is managed by SINELAC. The Burundian Agency for Rural Electriﬁcation (ABER) manages several small hydro plants. This available energy falls far short of meeting domestic demand and blackouts are common. In 2011, Burundi consumed around 200 GWh of electricity, of which 70 GWh was for industrial and commercial activities, 84 GWh for households and 46 GWh for other uses. Burundi is expected to require 280 MW up to 1000 MW of energy by 2020, depending on the needs of the mining industry and other industrial operations.

Hydropower will continue to be Burundi’s main power source. Burundi has an estimated 1700 MW of hydropower potential of which only 32 MW has been exploited. Developing Ruzuzi III (with an estimated capacity of 147 MW) and Ruzuzi IV (287 MW) are two of the most attractive energy-investment opportunities in the region.

Connecting to regional power systems Burundi is a member of the Eastern Africa Power Pool (EAPP), which aims to connect all East African countries from Tanzania to Egypt. Burundi also supports efforts to create a common EAC electricity market. To integrate

Burundi’s power grid with those of its neighbours requires major energyinfrastructure development. Burundi’s current domestic electrical-transmission system is made up of high-voltage and medium-voltage lines overseen by REGIDESO, but a new law allows for private operators to set up power-distribution systems. Electricity costs in Burundi are low but REGIDESO raised prices in 2011 and 2012 in line with World Bank recommendations to increase power prices to attract more investment in energy projects. The World Bank also helped Burundi create a pre-payment system for energy bills which will strengthen REGIDESO and help make it more attractive for joint ventures.

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Solar and other renewables Hydropower is not Burundi’s only renewable-energy source. With around 2000 kWh/m2 of annual sunshine, the country has good capacity to develop solar energy, and a recent EU-funded project installed solar power in 25 health centres around the country. The University Hospital of Kamenge has been equipped with solar power through a plant ﬁnanced by Japan’s JICA, while administrative centres, street lighting and small businesses around the country have also beneﬁted from new solar-energy systems.

platinum, limestone, vanadium, tantalum, niobium, kaolin, cobalt and peat. Burundi may also have oil reserves. UK’s Kermas Group has obtained licenses to mine three nickel-cobaltcopper deposits in Waga, Musongati and Nyabikere, while COMEBU mines columbite-tantalite in Kayanza province. ONATOUR mines peat in various sites. In 2011, the government reformed Burundi’s mining code to ease the procedures for obtaining a mining license.

Burundi Mining and Metallurgy is ready to develop the country’s mining resources with the help of energy partners. Managing Director Kreso Raguz says, “We have made some very promising discoveries in Burundi’s mining sector. Our production will require considerable quantities of energy that Burundi does not currently have. We are ready to engage in cooperation with private investors that wish to develop renewable energy in Burundi.”

Burundi can also develop wind, geothermal and biomass energy. A current study is looking into using household waste as an energy source in Bujumbura, and the Moso Sugar Company has installed a biomass power plant fuelled with sugarcane waste products. The EU recently announced a €50 million energy project in Burundi which will include rural electriﬁcation, small and medium-sized hydro plants, and energy-infrastructure improvements, all focussing on renewable-energy sources. Meanwhile, the Heineken group, operator of the Brarudi Brewery, aims to continue to expand in Burundi and wants to prepare for its growing energy needs by getting involved in renewableenergy initiatives. Maarten Schuurman, Managing Director, explains, “Heineken has vowed to become the world’s greenest brewer and thus favours the development of clean, renewable energy. We welcome all investors that wish to engage in the development of renewable energy in Burundi, and we are open to discuss proposals for how more of Brarudi’s energy consumption can come from renewables.”

Streamlined mining licenses Energy development is needed to help Burundi’s mining sector realise its potential. Burundi’s mining resources include nickel, gold, copper, uranium, tungsten, tin,

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Burundi

• ICT Sector on the Move

IT & Telecom

“Burundi is now targeting EU markets and welcomes all investors who are interested in Burundi’s ICT and broadcasting market.” Léocadie Nihazi, Minister of Telecommunications, ICT and Parliament Relations

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IT & Telecom

Major Projects Spurring on Telecom Growth Léocadie Nihazi, Minister of Telecommunications, ICT and Parliament Relations, discusses recent developments in the telecom sector. European Times: What are the main responsibilities of the Ministry of Telecommunications, ICT and Parliament Relations? Léocadie Nihazi: This ministry has many responsibilities in ICT, media and relations with parliament sectors. The ministry is responsible for establishing and implementing ICT and media policies and for enhancing relations between government and parliament. In order to achieve these responsibilities, the ministry’s ofﬁce has two main general departments, one overseeing communication issues and the other one handling ICT issues. There are also under the ministry other departments such as Burundi’s National Radio and Television (RTNB), National Telecommunications Ofﬁce (ONATEL), ICT Executive Secretariat (SETIC) and print medias operators (ABP, PPB, CIEP).

states are traditional partners of Burundi in many areas. European investors are very important in the ICT and broadcasting sectors. Burundi is now targeting EU markets and welcomes all investors who are interested in Burundi’s ICT and broadcasting market in the context of migration from analogue to digital broadcasting. European Times: What is your personal message to potential investors? Léocadie Nihazi: I would like to let all international investors know that Burundi is now peaceful, and the government is committed to go on with policy and legal reforms in order to greatly improve the business environment. For example, a new national ICT development policy has been adopted in 2011. There are also many successful foreign investors already working here in Burundi, and new investors should not be afraid to bring their capital in Burundi. We particularly welcome their investments in Burundi’s ICT and broadcasting sectors.

European Times: What are some of your recent projects? Léocadie Nihazi: We are now focussing on important projects such as national fibre-optic cable project, Bujumbura broadband network project, migration from analogue to digital broadcasting project. The purpose of those two first projects is to increase internet access throughout the whole country, which is, of course, the key to support business and investment growth. For the implementation the government is financing around 65% of the fibre-optic cable project. The fibre-optic project is around 55% completed at present. Concerning the migration from analogue to digital, we are finishing a technical feasibility study and the implementation of a digital broadcasting network is planned to be finished by March 31st 2014. European Times: How important is FDI from Europe to the development of the telecom sector? Léocadie Nihazi: As you know, the EU and its member

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Burundi

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iCT Sector on the Move Thanks to its stable GDP growth of around 5% per year, along with its high population density and low mobile-market penetration rate of around 36%, Burundi is now ranked one of Africa’s most attractive markets for telecom and ICT investors. With a ﬁxed-line penetration rate of only 0.4% and an Internet penetration rate of only 3.5% as of mid-2012, Burundi offers exceptional growth potential in all ICT segments. Burundi’s mobile operators are all rolling out new services, including mobile broadband and 3G. The country’s licensed mobile-services providers are state-owned Onatel, set for privatisation; U-Com Burundi, a wholly owned subsidiary of Orascom Telecom (part of the Vimpelcom group); Econet Wireless Burundi (EWB); Africa Cellulaire (TEMPO); Lacell SU (Smile Mobile); and HiTs Telecom (Burundi).

Burundi Backbone System A giant step forward for the telecom sector was the arrival last year of a national ﬁbre-optic network, the Burundi Backbone System, through a public-private partnership involving the government and Africel, Onatel, Ucom, Econet and Cbinet. In return for investing in the new infrastructure and guaranteeing services to users, the operators have the right to sell access to the network. The Burundi Backbone is being installed along 1,250 km and will connect Bujumbura to provincial urban areas as well as to regional and global markets through regional links. The new network will reduce connection costs from an average €2,301 per Mb via satellite to around €153 per Mb as demand rises. In addition to lowering costs, the Burundi Backbone system will significantly increase connection speeds as well as the diversity and quality of ICT services. Burundi’s telecom regulatory body, the Telecom Regulation and Control Agency (ARCT), will play a watchdog role concerning connection fees, and the state will support advantageous rates for certain groups, including students. The new network will create many new investment opportunities in Burundi’s ICT sector,

including in call centres, Internet cafés, e-services and ICT support. One popular new service is U-Com’s mobile-banking offering under its leo brand name. The operator, which has a 63% share of Burundi’s mobile market, is partnering with Interbank Burundi to allow its mobile users to deposit money into savings accounts and make withdrawals using their mobile phones. US-based firm Obopay will provide a secure Internet system for processing transactions. U-Com aims to have 200,000 customers for its leo Manoti mobile-phone payment service by the end of 2013, just one illustration of Burundi’s ICT growth potential.

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• Building Tomorrow’s Burundi • Upping Transport-Infrastructure Quality and Reducing Costs

Transport & Logistics

“We also strongly support publicprivate infrastructure and transport projects and we welcome foreign investors.” Déogratias Rurimunzu, Minister of Transport, Public Works and Equipment

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Building Tomorrow’s Burundi Déogratias Rurimunzu, Minister of Transport, Public Works and Equipment, discusses Burundi’s ongoing infrastructure development. European Times: What are the responsibilities of the Ministry of Transport, Public Works and Equipment? Déogratias Rurimunzu: While we are involved in building construction, our main task is to ensure modern infrastructure for Burundi, particularly good roads since many of our roads were destroyed during the war. Within the ministry is the Office of Roads, which works with organisations like the National Road Fund. We have launched a €329.3 million (BIF665 billion) project for road improvement and we are receiving support for it from various international funding organisations. Other priorities are to develop transport services on Lake Tanganyika and to expand our port services, for example the port of Bujumbura Rumonge. On the regional level, we are working with Zambia on a project concerning Burungu port and we are launching projects to create railway links with Tanzania and Rwanda. We have completed the feasibility study for a new rail link connecting Keza, Kigali, Gitega and Musangati, and we are working on a memorandum of understanding with Tanzania on a rail line which will particularly beneﬁt our mining industry. Our building projects include a new presidential palace, a new parliament building, rehabilitation of University Hospital, and new housing in the Buyenzi area. We are also involved in various pub-

lic-works projects. Over the long term, the government plans to develop Ougendana airport as an alternative to our main airport in Bujumbura, particularly for the mining sector.

Bank, the EU, the World Bank and others. We also strongly support public-private infrastructure and transport projects and we welcome foreign investors.

“Burundi’s infrastructure development is creating signiﬁcant opportunities for foreign investors, particularly in our railway projects, new airport construction and transport services on Lake Tanganyika.”

European Times: What progress has been made recently in upgrading Burundi’s infrastructure?

European Times: How will these projects be ﬁnanced? Déogratias Rurimunzu: In addition to state funds, we are receiving support from many international institutions, including the African Development

Déogratias Rurimunzu: Burundi’s infrastructure has greatly improved over the past five years. Roads are being rehabilitated and more and more hotels are opening up. We are also privatising various operations in the transport sector, and the country as a whole has made significant progress in improving the business climate and making processes more efficient and transparent, as our improved ranking in the global ‘Doing Business’ report shows. Burundi’s infrastructure development is creating significant opportunities for foreign investors, particularly in our railway projects, new airport construction and transport services on Lake Tanganyika.

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Burundi has adopted an ambitious infrastructure-development strategy to build the systems it needs to get its private-sector activities up and running. Signiﬁcant progress has already been made in upgrading the country’s transport infrastructure. In February this year, Burundi’s Minister of Transport, Déogratias Rurimunzu, formally thanked the United Nations Development Programme (UNDP) and the government of Belgium for their support in upgrading Burundi’s international airport in Bujumbura. He said, “This project has enormous importance for Burundi and for our international airport, the window onto our country.”

Following massive investment, the airport now has new electrical equipment, new runway lighting and other systems that meet international standards. Xavier Michon, the UNDP’s country director for Burundi, comments, “When the current project began in 2010, Burundi risked being abandoned by international airlines because of poor conditions. Today, Bujumbura airport meets global standards and is capable of serving the world’s biggest airlines.” Belgian Ambassador to Burundi Marc Gedopt added, “Burundi has made progress in ensuring the security of passengers and planes, which will create new international contacts and relations with the global community.”

Massive infrastructure-development plan The airport project is just one step along the way for Burundi’s massive infrastructure-development programme. The “Burundi Infrastructure Action

Plan” drawn up by the African Development Bank (ADB) estimates that Burundi needs investments of around €3.6 billion over the coming 15 years to complete necessary infrastructure projects, with an additional €919 million to be invested in maintenance costs. Key objectives are to improve access to local and international markets and to lower transport costs. The ADB plan calls for upgrading Burundi’s roads and civil-aviation services as a ﬁrst priority and then looking into opportunities to develop rail links to neighbouring countries.

Upgrading road network One urgent goal is to expand and modernise Burundi’s road network, including paving all 1,950 km of the country’s main roads by 2020 as well as broadening major roads to accommodate more trafﬁc. The ADB plan also calls for expanding Burundi’s urban road network from around 650 km to around

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Burundi

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1,650 km by 2030, and improving rural roads to help farmers get their products to market. Concerning rail development, creating a modern rail link from Burundi’s mines to Tanzania is crucial for the mining industry. After many years of war, Burundi lags behind most other countries, including other countries in the region, in road density, telephone density, power-generation capacity and service coverage as well as in transport systems. About 90% of the country’s population lives in rural areas but very few have access to all-season roads, and road density in agricultural areas is signiﬁcantly lower in Burundi than elsewhere in Africa. In addition, only 2% of Burundi’s population has access to electricity compared to an average of around 16% in SubSaharan Africa.

Reducing transport costs Not only is access to infrastructure services limited, but the poor state of Burundi’s infrastructure leads to substantially higher costs, which diminishes the competitiveness of the national economy. The ADB reports that transport costs for Burundi’s agricultural sector represent an average of 35% of agricultural products’ import

prices and 40% of export prices. While transport costs are high throughout the region, they are generally higher in Burundi than in neighbouring countries, according to the ADB. Developing modern transport systems in Burundi will help the country make the most of its role as a regional transport hub. Burundi lies on two key East African transport routes: the Northern Corridor, anchored by the port of Mombasa in Kenya, and the Central Corridor, anchored by the port of Dar es Salaam in Tanzania. Both are the main trade routes for the ﬁve East African Community (EAC) countries.

Streamlining regional transport corridors Because of inadequate investment in infrastructure as well as inefﬁcient management, these two key routes are plagued by long transit times and high costs. In fact, transport along these routes costs around 50% more than average freight costs in the US and Europe and can add up to as much as 75% of the value of imports. Modernising this infrastructure and removing nontariff barriers are obviously essential for developing regional and international trade in all EAC countries, including Burundi. Transport-infrastructure development in Burundi is overseen by the Ministry of Transport, which has several ambitious projects planned or underway. These include a €329.3 million road-improvement effort, plans to develop transport services on Lake Tanganyika and to expand Bujumbura’s port, and a programme in partnership with Zambia to develop Burungu port. The ministry is moving forward on a project to build a new rail link connecting Keza, Kigali, Gitega and Musangati and is partnering with Tanzania to come up with a plan for a rail connection serving Burundi’s mining industry. Continuing to improve the international airport and developing Ougendana airport are other goals. Burundi welcomes international investors to participate in its many transport projects.

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• Progress Being Made in Improving Healthcare Services • Impressive Progress in Meeting Healthcare Challenges

Health

“We want to improve the quality of our hospitals and healthcare centres by investing in new equipment and technologies.” Dr. Sabine Ntakarutimana, Minister of Public Health and the Fight Against HIV/AIDS

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Progress Being Made in improving Healthcare Services Dr. Sabine Ntakarutimana, Minister of Public Health and the Fight Against HIV/ AIDS, discusses challenges and recent progress in Burundi’s healthcare sector. European Times: Can you describe the organisation of Burundi’s healthcare system? Dr. Sabine Ntakarutimana: The Ministry of Public Health and the Fight Against AIDS oversees the entire public healthcare system, which includes 63 hospitals, including four national referral hospitals in Bujumbura, and 45 healthcare districts throughout the country. We have a department in charge of resources, one in charge of planning, a branch in charge of public health and the fight against AIDS, and various autonomous institutions, including the central organisation for purchasing pharmaceuticals. In the provinces, each healthcare district has one district hospital. Burundi now has a total of 827 healthcare centres compared to 200 a few years ago. European Times: What are the top priorities of the Ministry of Health? Dr. Sabine Ntakarutimana: The main mission of our ministry is to fight against diseases with high mortality rates, such as malaria, respiratory infections, diarrheal diseases and HIV/AIDS, as well as chronic, non-infectious health problems which are becoming increasingly common in Burundi

Dr. Sabine Ntakarutimana, Minister of Public Health and the Fight Against HIV/AIDS

as the country’s economy develops, including high blood pressure, diabetes and heart disease. We also support continuing immunisation efforts; Burundi has already achieved a 90% immunisation rate for children. European Times: What are some of your current projects? Dr. Sabine Ntakarutimana: As part of our efforts to combat malaria, we distribute mosquito nets impregnated with insecticide. We are also developing a research centre in the province of Bubanza to focus on mosquitoes and new ways of cutting the chain of transmission of mosquitoborne illnesses. We are building a new hospital in Karusi province which will serve patients referred to

it from all over the country, and we have many programmes to combat AIDS and make treatment available to more HIV patients. European Times: What are some major recent steps forward in the healthcare sector? Dr. Sabine Ntakarutimana: In addition to our great progress in immunisation, we have provided free healthcare for children under five and for pregnant women since 2006. As a result, the maternal mortality rate has decreased from 614 deaths per 100,000 births to 499 deaths per 100,000 births, and now 70% of mothers give birth in hospitals compared to 34% in 2005. If we continue to improve at this rate, we

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Health

work in France or other places where they can gain higher revenues and work in better conditions. We are developing programmes in capacitybuilding to improve the working environment for healthcare professionals and we are also promoting higher wages for them. Another specific challenge is that around 58% of the children under five in this country are malnourished, and we are developing programmes to cope with this. European Times: What are your goals for the future?

will reach the Millennium Development Goals by 2015. We have also made progress in the availability of pharmaceuticals, and the private pharmaceuticals sector is growing. We are gradually bringing healthcare services which meet World Health Organisation standards to people throughout the country. European Times: What are the main challenges your ministry faces? Dr. Sabine Ntakarutimana: A major challenge is Burundiâ&#x20AC;&#x2122;s high population growth rate, which has reached around 6.4 children per mother. We have initiated a project

which aims to reduce this to three children per mother by 2025. We are working to increase the use of contraceptives and to promote smaller families, but birth control is culturally complex in an African country since having large numbers of children is considered an asset. Another huge challenge is to provide healthcare to people living in poverty. To cope with this, the ministry is developing a health card aimed at broadening access to healthcare among disadvantaged members of the population. We want to move towards universal healthcare coverage. Upgrading the quality and number of our healthcare professionals is another top priority. Many doctors and other healthcare professionals have left the country to

Dr. Sabine Ntakarutimana: In addition to working to meet the challenges I have mentioned, we are currently assessing the progress that has been made in our National Health Development Plan for 2011 to 2015, which is budgeted at â&#x201A;Ź22.9 million. We are receiving support for our healthcare programmes from the World Bank, the EU and other funding sources, and the government of Burundi has increased its support for healthcare from 4% of the annual state budget in 2005 to 11% today. We want to improve the quality of our hospitals and healthcare centres by investing in new equipment and technologies, and we also aim to further decentralise the healthcare system to increase and improve services for rural residents. Another priority is to boost our support for preventative healthcare. Burundiâ&#x20AC;&#x2122;s healthcare system has been greatly improved in the past few years but it still needs significant investment and support from the public and private sectors.

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impressive Progress in Meeting Healthcare Challenges Burundi has inaugurated an ambitious new healthcare development plan for the period 2011 to 2015 that has already resulted in significant improvements in healthcare services. The plan’s mission is to guarantee increased access to basic healthcare for all citizens of Burundi. Priorities include improving maternal, newborn and child health; promoting reproductive health and family planning; combating malaria, malnutrition and HIV/AIDS; improving healthcare services in general; and making healthcare more affordable through new financing mechanisms. Burundi remains one of the poorest countries in Africa and is ranked 166 out of 169 countries on the 2010 UN Human Development Index. Healthcare challenges are great. The country’s population, which totalled eight million in 2008, is growing by around 2.4% per year and half of Burundians are under 20. Life expectancy is 46 years for men and 52 years for women. Infectious and communicable diseases, primarily HIV/AIDS, malaria and diaria, are responsible for most disease-related deaths, while respiratory-tract infections, malaria, and waterborne diseases, particularly diaria, remain the main causes of death in children under five.

grammes and praised the progress the country has made, including in healthcare. The development partners particularly cited improvements in healthcare and education for children as well as Burundi’s decision in 2006 to provide free maternal healthcare and free paediatric care for children under ﬁve.

Priorities for healthcare development Priorities in Burundi’s current healthcare development plan include further reducing maternal, neonatal, infant and child mortality; further reducing mortality from communicable diseases; and strengthening the health system in order to make progress towards meeting Millennium Development Goals.

Reforms on track Widespread poverty, undeveloped infrastructure, poorly paid healthcare professionals and ineffective healthcare management are problems which have held Burundi’s healthcare sector back. The new healthcare programme, which builds on a previous one, aims to change that. Preliminary indicators show that Burundi’s healthcare reforms are on the right track. Around 99% of women now have at least one antenatal-care check-up at a clinic, while assisted births in health facilities have risen to 60% from only 22.9% in 2005. Burundi has also upped its public expenditure on healthcare to 11% of the annual budget. At the Burundi Conﬁguration of the UN Peace Building Commission in New York in November 2012, the African Development Bank, the EU, the IMF, the UN Development Programme and the World Bank all pledged their continued support for Burundi’s development pro-

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• Tourism Singled Out as Key Economic Driver • Unique Sites with Exceptional Tourism Potential

Tourism

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Burundi LAnd

Burundi, the Beating Heart of Africa Burundi certainly has what it takes to become a popular tourism destination: beautiful unspoiled natural areas, a colourful culture, a welcoming population, membership in the East African Community, an international airport, and a government strongly committed to promoting tourism development.

Tourism to help create jobs, fight poverty In Burundi’s national development plan for 2025, tourism is singled out as a priority sector, and in February 2012, Second Vice President Gervais Rufyikiri cited tourism as one of three industries which will help Burundi achieve 8.2% economic growth in 2015. The government aims for tourism to play a leading role in providing employment (particularly for women and young people), improving living standards and reducing poverty in rural areas, generating revenues and helping to preserve the country’s natural and cultural heritage. Burundi created a National Tourism Office in 1972, but tourism development was held back by long years of war and insufficient investment. The government’s National Strategy for the Sustainable Development of the Tourism Sector for the period 2010 to 2020 aims to jump-start Burundi’s tourism industry now that the country is at peace. The plan cites several attractions with particularly strong tourism potential, especially for ecotourism. These include Lake Tanganyika, Kibira National Park, Ruvubu National

Source of the Nile

Park, Rwihinda Lake Natural Reserve, the most southern source of the Nile, natural springs suitable for spas, several picturesque waterfalls, and diverse cultural attractions like the drums sanctuary of Gishora, which preserves Burundi’s historic drum traditions.

Boosting hotel capacity a top priority Increasing hotel capacity is a top priority. As of early 2012, Bujumbura had only 68 hotels, with a total of 1,387 rooms, and lodging options for travellers outside the capital are limited. The success of the international-standard Hotel Club du Lac on Lake Tanganyika illustrates the potential for investments in high-quality hotels and resorts in Burundi. Burundi is still a virgin market for tourism investors. In addition to hotels and other tourism infrastructure, the country needs training centres for potential workers in the hospitality and travel industries, modern facilities for international conferences, better access to tourism sites, and more effective marketing programmes. In spite of these challenges, Burundi has seen its total visitor arrivals rising; the country attracted 198,186 international tourism visitors in 2007 compared to around 27,000 in 1996. However, the 2007 total was still far below the tourism arrivals reported by neighbouring Kenya and Tanzania that

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Lake Tanganyika

same year. The proposed East African Community visa should help bring more regional visitors to Burundi, but the government also wants to draw more visitors from around the world.

Better conditions for investors in tourism To bring in more tourism investors and visitors, the government is upgrading conditions for investment, creating new incentives and actively promoting public-private partnerships. A new regulation on tourism projects which came into effect in July 2012 includes a classiﬁcation system for hotels and other tourism infrastructure and aims to guarantee a better climate for investors in the tourism sector. According to the Burundi Investment Promotion Authority (API), FDI in Burundi has grown signiﬁcantly as a result of the government’s recent reforms. The API reports that South

Africa alone had funnelled €150 million in FDI into Burundi by late 2010, mainly in tourism and agro-business projects. Generating public support for tourism development is another priority of the government. The National Institute for the Environment and Nature Conservation has launched environmental-awareness programmes in secondary schools in Gitega and Bujumbura to make sure the next generation is aware of the need to protect Burundi’s natural heritage and understands that environmentally-friendly tourism is an important way to achieve this. To make tourism professionals and travellers more aware of Burundi’s tourism appeal, the country’s tourism representatives are stepping up Burundi’s presence in international conferences, including the inﬂuential ITB tourism fair in Berlin, where for the past three years Burundi’s stand has won the prize for the best exhibit by an African country. Burundi has also participated in the Intourmarket tourism fair in Moscow, the Yiwu International Tourism Fair in China, the World Travel Market in London and the China Outbound Travel and Tourism Market (COTTM 2013), among other global tourism meetings.

Hilton entering the Bujumbura market

Progress is deﬁnitely being made. In 2012, the global Hilton group announced that it would convert a former Novotel property in Bujumbura into a DoubleTree by Hilton hotel, which will be Burundi’s ﬁrst international-brand luxury hotel when it opens in early 2014. Patrick Fitzgibbon, Senior Vice President of Development for Hilton Worldwide Europe and Africa, comments, “Burundi is a great example of how the East Africa region is attracting increasing numbers of local and international travellers, which is fuelling demand for quality hotel accommodation, particularly in gateway cities like Bujumbura. Our new hotel will help meet that growing demand.”

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Burundi

City Hill Hotel

new Hotel ideal Choice for Executive Travellers The new City Hill Hotel, which opened in July 2012, offers world-class facilities and services in a hilltop location with picturesque views of Bujumbura and Lake Tanganyika. Pascal Ledoux, Hotel Manager, explains, “There are numerous choices out there for overnight lodging in Bujumbura, including hotels, apartments and guesthouses, but the city lacked a true international-standard business hotel, and the City Hill Hotel was created to ﬁll that gap.” Around 80% of the hotel’s guests are international travellers, most of them in Burundi on business. The City Hill Hotel sets itself apart from other hotels in the city with its exceptional Princess Restaurant, which specialises in gourmet international and African cuisine using top local ingredients. Guests can relax with a drink and snacks in the Ballerina Bar or enjoy the hotel’s homemade ice cream. The Executive Lounge, designed for business travellers, offers a quiet atmosphere over-

Pascal Ledoux, Hotel Manager

looking the city. Pascal Ledoux says, “The Executive Lounge is very popular among our executive guests as a place to unwind at the end of the day with a nice cocktail.”

Wide choice of rooms and services The City Hill Hotel has 45 rooms consisting of 18 standard rooms, 13 superior rooms overlooking the pool, 12 superior rooms with expansive city and lake views, and two executive suite rooms. For business travellers, the hotel offers a fully equipped business centre with fax machines, scanners and printers. The City Hill Hotel also has three meeting rooms,

from a board room seating 15 people to a conference facility with the capacity to host up to 120 guests. Other amenities at the hotel include foreign-currency exchange services, an airport shuttle, free high-speed Internet connections, private parking, a gym and a swimming pool. Pascal Ledoux aims for the City Hill Hotel to be the hotel of choice for international visitors to Burundi. He says, “We have a very comfortable, brand-new hotel facility that meets international standards, and we provide very professional and personalised services by our dedicated, well-trained, multilingual staff. Our location is also ideal with easy access to the international airport and to the city centre. We want the City Hill Hotel to be known as one of the top three hotels in Burundi.”

Boulevard du 28 novembre Bujumbura Tel: +257 22 27 7784 info@cityhillhotel.com www.cityhillhotel.com

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Tourism

unique Sites with Exceptional Tourism Potential most southern source of the Nile river and is one of Burundi’s unique tourism sites. Nearby Muhweza hot springs could be developed as an added attraction.

Kibira National Park Located around 59 km north of Bujumbura, Kibira National Park covers around 47,600 hectares and is one of the last remaining intact stretches of Afro-montane forests in the region. The park is home to around 644 plant species, over 100 animal species and 200 species of birds. Easily reached from Bujumbura, the park has great potential to be developed as an ecotourism destination. Nyakazu Fault

Lake Tanganyika

Natural hot springs

Burundi’s top tourism attraction is certainly magical Lake Tanganyika, the second-largest by volume and seconddeepest lake in the world after Siberian Lake Baikal and one of the richest freshwater ecosystems on the planet. Over 1,500 species of flora and fauna have been identified in and around the lake, including more than 600 endemic species and over 260 species of fish. The lake has beautiful sandy beaches, clear turquoise water and vast tourism potential, for example in the creation of water-sports facilities and cruises.

Burundi has many natural hot springs ideal for spa tourism. They include Munini hot springs, set around 145 km from Bujumbura; Mugara hot springs, located around 20 km from Bujumbura but whose infrastructure was destroyed during the war; and Cibitoke hot springs toward the Rwanda border.

Bujumbura On the shores of Lake Tanganyika, capital city Bujumbura has a 1,200 m lake front which is home to many restaurants and entertainment venues as well as a beach. The Bujumbura Living History Museum, set in a garden in the heart of the city, showcases Burundi’s long history and includes a small zoo, a shop selling Burundian crafts, a replica of a typical rural Burundian home and an open-air theatre.

Source of the Nile A spring on mount Gikizi in the Kibimbi mountain range around 115 km from Bujumbura has been identiﬁed as the

Northern Aquatic Region Around 200 km north of Bujumbura are three vast lakes which cover a total of 80 sq km. Yaranda on Lake Cohoha has a popular beach, while Rweru is a paradise for birdwatchers. Kanzigiri also has a lovely beach, and all three lakes are good choices for tourism projects. The lake region is an important bird habitat for migrating species.

Ruvubu National Park Located around 235 km from Bujumbura, Ruvubu is the biggest of Burundi’s national parks, covering almost 51,000 hectares of woodlands and savannah. It is crossed by the Ruvubu River, the longest river in Burundi at around 280 km. The park is home to around 300 plant species, including many types of orchids, as well as a wide variety of animals and birds.

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Rusizi Reserve

Nyakazu-Nkoma Natural Monument

Gitega National Ethnographic Museum

In southern Burundi around 150 km from Bujumbura, Nyakazu-Nkoma is known for its waterfalls, including the 1,600-m Karera Falls, for its caves, dense forest, many species of birds and rich animal life, and unique geological wonders. The Nyakazu Fault, or Faille des Allemands, is a spectacular ridge separating two plateaus.

This landmark museum, built at the beginning of the 20th century and renovated in 2009 with support from Germany and the US, houses Burundi’s most complete and varied collection of cultural objects, including pottery, tools, musical instruments and ceremonial costumes. Near the museum is Fort Bomani, the residence of the German governor of Burundi at the beginning of the 20th century, which the government would like to develop as a centre for Burundian crafts.

Historic sites: Rubumba, Kiganda Located in Muramvya province, Rubumba was where Burundi’s kings were crowned. The site now has a museum displaying a typical dwelling of Burundi royalty, complete with traditional utensils. Kiganda, also in Muramvya province, is where King Mwezi IV Gisabo signed a treaty with Germany in 1908; it is surrounded by sacred trees.

Gishora drum sanctuary Burundi’s drums and intricate drumming practices are showcased at Gishora in a picturesque location with panoramic views of the countryside. The site was developed by the Burundi drum clan, which holds traditional drum performances there.

Nature preserves: Kigwena, Rumonge, Bururi, and Rusizi Kigwena, one of Burundi’s oldest forest preserves, covers around 500 hectares and contains many rare plant and animal species. Rumonge forest preserve, covering around 600 hectares, is known for its termite mounds, some 4 m tall, and for its varied bird and animal life. Mountainous Bururi forest preserve, with around 1,000 hectares of forest, has around 250 native plant species and many types of monkeys as well as a variety of birds and carnivores. Rusizi nature preserve, covering almost 5,500 hectares, is located just outside Bujumbura and has many water plants and palm trees as well as around 1,000 rare plant species, many birds and a variety of animal life, including crocodiles and hippos.

Gitega National Museum

These sites need investment in hotels and other tourism infrastructure, but all offer outstanding potential for development.

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Tourism

Sun Safari Club Hotel

Locally-Owned Hotel with Highest international Standards The Sun Safari Club Hotel brings innovation, experience and the highest international standards to Burundi’s rapidly developing tourism industry. Launched in 2005, the family-owned property has grown over the years and now contains 60 guestrooms in ﬁve categories, from singles to a sumptuous Presidential Suite. Owner Audrey Mugisha says, “When my husband and I opened the hotel, it was one of the ﬁrst privately-owned hotels in Bujumbura. Now the local tourism industry is starting to pick up, and we have a huge advantage because of our years in the market.” The hotel offers a range of amenities for both business and leisure travellers, including two restaurants specialising in African and international dishes, a convivial bar, an outdoor swimming pool, wireless Internet connections and facilities for children. The Sun Safari Club Hotel’s wide choice of meeting rooms range from well-equipped boardrooms to a main hall which can accommodate up to 250 guests. Audrey Mugisha points out, “We are a top choice among business visitors and we offer great conference packages.

Our location in Bujumbura is ideal since it is quiet but close to the centre of town, in a picturesque setting overlooking the city and Lake Tanganyika. We welcome many guests from the East African Community and we are the hotel of choice for embassies as well as other institutions and associations.” In addition to catering to business guests, the Sun Safari Club Hotel is expanding its services for families and other leisure travellers.

Focus on services To ensure the level of service that international travellers demand, the owners have placed a high priority on training their 120 staff members. Faced with increasing competition, including price wars in the local hotel sector, the Sun Safari Club Hotel will continue to differentiate itself through its quality. Audrey Mugisha says, “We prefer to set ourselves apart by living up to interna-

tional standards. The guest is our main concern.” The hotel offers a number of attractive packages and is stepping up its international marketing efforts, including through its own web site. The Sun Safari Club Hotel will soon have 100 more rooms, which will add to its appeal as a choice for conferences. Audrey Mugisha says, “My husband and I came back to Burundi and we wish to help develop it. I am proud of what is going on in this country today and I welcome all your readers to experience beautiful Burundi and to stay at the Sun Safari Club Hotel.”

Avenue de Mao Tse Tung Bujumbura Tel: +257 22 21 0007 info@sunsafariclubhotel.com www.sunsafariclubhotel.com

Burundi

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Hotel Club du Lac Tanganyika

Luxury resort Perfect Base on Beautiful Lake Tanganyika The four-star Hotel Club du Lac Tanganyika offers guests cutting-edge amenities and world-class customer service along with unforgettable views of Lake Tanganyika, one of the most spectacularly beautiful natural wonders in the world. Located only minutes from Bujumbura’s city centre and the international airport, the Hotel Club du Lac Tanganyika seems worlds away thanks to its tranquil lakeshore setting. The hotel is surrounded by beautiful gardens and overlooks a vast white-sand beach, with the Congo mountains and the Burundi hills rising in the background. The hotel’s unique ‘W’ design gives all guestrooms a view of the beach, lake and gardens, which are home to over 100 species of flora and fauna.

Owner Alfredo Frojo, who is passionate about Burundi, says, “It is a labour of love. We opened the hotel in 2002 with only 20 rooms and we have continued to expand and improve it. Our dedicated employees are the key to our hotel’s success.” Managing Director Danny Richard Rugonimana adds, “The Hotel Club du Lac Tanganyika is ranked the most beautiful resort on the lake. The climate here is ideal, with steady breezes and low humidity. The location is perfect for all kinds of water sports, including windsurﬁng.”

Community service and environmental protection The Hotel Club du Lac Tanganyika was built using local materials and local labour, and the interior decoration features the work of Burundi’s craftspeople, including pottery made by the members of the Batwa Pigmy tribe and baskets woven by women in Ruyigi province. Alfredo Frojo says, “We wanted to use furnishings and art that

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represent the knowledge and skills of Burundian people. In addition, all our staff members, including management, are local.” The hotel also supports a number of local schools, universities, cultural programmes and other community-service projects. In one of these initiatives, the hotel helps residents of Kinyinya village in exchange for top-quality fruits and vegetables grown at the village for the hotel’s kitchen. Now with 110 rooms, the Hotel Club du Lac Tanganyika has been renovated using the latest environmental technologies with the help of Italy’s Frojo Engineering. Wastewater is filtered using tree roots, hot water is produced with solar panels, leftover vegetables and fruits are composted and other waste materials are recycled, and the building is designed to be naturally cooled by the fresh breezes off the lake.

Upscale amenities The hotel’s amenities include airport and city shuttle services, tennis courts, private parking, a gym, a sauna, a huge swimming pool, high-speed Internet connections, a well-maintained beach at the lake, a beach-volleyball court, massage services, a beauty salon, a nightclub, a choice of dining and beverage options with both indoor and outdoor seating, a boutique, a special children’s play area with a children’s pool, and several live concerts every week. A golf course and equestrian centre are located nearby, and the hotel can arrange car and boat rentals as well as sailing and surfing. The Hotel Club du Lac Tanganyika also offers upscale guided excursions of several days to introduce travellers to Burundi. Danny Richard Rugonimana says, “Burundi is a wonderful country with very welcoming people, a rich cultural heritage, and amazing natural wonders as well as an ideal temperate climate year-round. Burundi has great natural variety, from pristine rivers and lakes to beaches, mountains, a source of the Nile, and game reserves which are home to crocodiles, hippos, chimpanzees, antelopes, mountain gorillas and all kinds of birds. Most spectacular of all is Lake Tanganyika, which is the longest lake in the world at more than 600 km and also

one of the deepest, with a depth of 1,400 m. This lake has one-sixth of all the fresh water on the planet.”

Popular choice for prestigious events The Hotel Club du Lac Tanganyika is a popular choice for prestigious events and business meetings for both local and international groups. The hotel has two conference areas equipped with the latest technologies, one accommodating 100 guests and the other 150 guests; they can be combined for larger meetings. The hotel can host and cater large dinners and receptions and has its own events staff ready to organise the ideal wedding or other special occasions. For executive travellers, the hotel also has two smaller meeting rooms for up to 20 guests each. As one of Burundi’s top hotels, the Hotel Club du Lac Tanganyika plays a key role in spurring on the growth of the country’s tourism industry. Danny Richard Rugonimana explains, “The Hotel Club du Lac Tanganyika is proud that a key strength of our hotel is the quality of our staff, who offer very professional service as well as authentic local hospitality. We continuously train our staff in English and in hospitality services to guarantee the best possible welcome for our guests.” The Hotel Club du Lac Tanganyika is the ideal base for exploring Burundi’s exceptional tourism attractions.

Chaussée d’Uvira Bujumbura BP 6573 (BU) phone +257 22250220 / 221 fax +257 22250219

info@hotelclubdulac.com www.hotelclubdulac.com www.facebook.com/hotelclubdulac www.youtube.com/hotelclubdulac

Chaussée d’Uvira Bujumbura Tel: +257 22 25 0220 info@hotelclubdulac.com www.hotelclubdulac.com

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