December 21, 1981. This is the date of Burundi’s accession to COMESA. Two months before the celebration of 43 years of its membership in this missa solemnis of economic integration and regional development, Burundi is hosting its 23rd summit, from October 28 to 31, 2024. Beyond the scenery, smiles, stylish suits and diplomatic speeches, what track record does Burundi display in this great space of commerce and business? Analysis.
It is one of the most important events that the country of “milk and honey” is organizing on its soil this year. Let’s open this chapter with some background to the current event.
Yes 11pmth summit is indeed being held in Burundi, another of its kind has, in the past, been canceled at the last minute. This for “security” reasons Heads of State who should take part. It’s the 20the summit which was to take place from 1is to June 10, 2018. It was postponed 10 days before it was due to take place and relocated to Zambia for the following month. As Sindiso Ngwenya, then secretary general of Comesa, explained, “ the Burundian had not reassured » Heads of State on their security in Bujumbura. Only 4 Heads of State had confirmed their participation even though there should be at least 13.
Since then, Burundi has continued to demand reimbursement of expenses incurred in preparations for this summit. In 2019, the secretary general of this bloc, visiting Burundi, promised that her organization is ready to reimburse the expenses of preparations for this relocated summit. The question that remains pending is whether the reimbursement was made as promised by Chileshe Mpundu Kambwewe or not. But also the how.
A mixed strategic positioning
The Heads of Member States of the Common Market for Eastern and Southern Africa (COMESA) are expected in the economic capital Bujumbura on October 31. On the menu of side events, a business forum and a council of foreign ministers were held on October 28 and 29, respectively. “ This summit is a key event to strengthen economic integration and regional development among member states » ; we read on the specific website from the top.
One of the key opportunities offered by Comesa is the promotion of regional trade integration, particularly the free movement of capital and investments. The recent establishment of a free trade zone (ZLECAF) which guarantees the free movement of goods and services produced within Comesa is an important step taken.
It is clear that Burundi seems to be a sales market for other member countries of this business bloc. Burundi’s exports are far lower than its imports, according to statistics from the National Institute of Statistics of Burundi (INSBU).
The numbers say it better
The statistical yearbook of Burundi 2022 shows that the country imported goods worth 429.196 billion BIF from Comesa countries against 139.365 billion in exports; i.e. a difference of 289.831 billion BIF.
Uganda led the countries where Burundi imported more goods with a value of 153 billion followed by Kenya with 137 billion, then Zambia with 55 billion, Egypt with 32 billion, and finally the DRC with 24 billion . In terms of exports, the DRC is the main partner. Burundi mainly sells beers and soaps there. Parentheses; on the sidelines of this 23th summit, the Burundian Minister of Trade and Transport, Mrs. Marie Chantal Nijimbere, will officially launch the COMESA simplified trade regime (RECOS) between Burundi and the DRC, across the Gatumba border; this October 30.
Business environment: Burundi comes at the back of the pack
« The economic image that Burundi presents to other member countries of the community is not rosy » ; a commented the economist André Nikwigize.
In 2024, the rate of business freedom stood at 38% according to the Index of Economic Freedom. On this point, Burundi comes only before Sudan (34%). In 2022, only 11% of the population had access to the internet (at the bottom of the table compared to other countries). The rate of access to energy oscillates around 11% according to the World Bank (back of the line). In 2023, foreign direct investments were equivalent to $29 million according to the United Nations Conference on Trade and Development (bad student, just before Comoros and Eritrea).
Burundi joined this large community from its creation (ZEP) and benefited from the common external tariff of the community, i.e. 25% for finished products, 10% for intermediate goods and 0% for raw materials and capital goods.
During the business forum held this October 28 at Agateka Hall, it was revealed that effective integration into Comesa still faces certain challenges, among others the requirement of visas for the populations of member countries, the insufficiency of infrastructure transport or even the air transport charter. In addition to these common challenges, Burundi faces competition, as it imports more than it exports, as well as inefficient internal systems.
If Burundi is in the spotlight this year by hosting the #COMESASummit2024, it still remains deplorable that this territory of Rwagasore and Ndadaye ranks at the end of the table on the line of opportunities offered by this community to which it joined from the first hours.
Genesis of COMESA in brief:
Currently bringing together 21 countries and being one of the regional economic communities recognized by the African Union, Comesa was initially created in 1981 as a Preferential Trade Zone for the States of Eastern and Southern Africa (ZEP). This was within the framework of the Lagos Plan of Action and the Lagos Final Act adopted by the Organization of the African Union. The ZEP was subsequently transformed into COMESA in 1994.
Member States: Burundi, Djibouti, Egypt, Eritrea, Eswatini, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Uganda, Democratic Republic of Congo, Rwanda, Seychelles, Somalia, Sudan, Tunisia, Union of the Comoros, Zambia and Zimbabwe.
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2024-10-30 10:28:00
Title: A Closer Look at Burundi’s Economic Prospects with COMESA
Interviewer (Time.news Editor): Welcome to our special interview as we discuss Burundi’s participation in the Common Market for Eastern and Southern Africa (COMESA). We’re excited to have Dr. Jean-Pierre Nkurunziza, an economic expert and analyst, with us today. Thank you for joining us, Dr. Nkurunziza.
Dr. Jean-Pierre Nkurunziza: Thank you for having me. It’s a pleasure to be here to discuss such an important topic, especially at this pivotal moment for Burundi.
Editor: As we approach the 23rd summit of COMESA in Burundi, this event marks a significant occasion for the country. How do you perceive Burundi’s role in COMESA after 43 years of membership?
Dr. Nkurunziza: Burundi’s long-standing membership in COMESA is indeed significant, but it brings with it a mixed bag of outcomes. While the summit should be an opportunity to showcase Burundi as a hub for regional trade, the reality is that the country faces substantial challenges in terms of economic integration and trade performance.
Editor: That’s interesting. What specific challenges does Burundi face in attracting foreign investments and promoting trade within the COMESA framework?
Dr. Nkurunziza: One of the key challenges is the business environment itself. According to the Index of Economic Freedom, Burundi’s score of 38% is concerning, ranking just above Sudan. High levels of governmental regulations and limited access to essential services like electricity and the internet hinder economic activities. Additionally, with foreign direct investments being as low as $29 million in 2023, it suggests systemic issues that need urgent addressing.
Editor: Speaking of systemic issues, I heard the recent report indicating that Burundi’s imports vastly outpace its exports, with a staggering deficit of 289 billion BIF. How does this affect Burundi’s economic standing within COMESA?
Dr. Nkurunziza: Yes, that statistic reveals a crucial aspect of Burundi’s trade dynamics. While the country imports extensively—mostly from Uganda and Kenya—it struggles to position itself as a competitive exporter. This imbalance indicates a reliance on neighboring countries for essential goods while not fully leveraging its market for exports, apart from niche products like beer and soap to the DRC. This situation compromises Burundi’s bargaining power within COMESA.
Editor: With the summit set to kick off soon, what opportunities does this event present for Burundi to enhance its economic landscape?
Dr. Nkurunziza: The summit offers an important platform to promote the recently established COMESA simplified trade regime, which should theoretically ease cross-border trade with the DRC. Additionally, business forums can facilitate direct dialogues between local entrepreneurs and foreign investors. This could open doors for joint ventures and partnerships that Burundian businesses desperately need.
Editor: There had been issues regarding security that previously postponed a summit to Zambia. How do you believe Burundi’s security situation currently impacts its international relations and economic collaboration within COMESA?
Dr. Nkurunziza: Security remains a significant concern. The challenges in assuring neighboring states of safety can undermine trust and deter potential investment. If Burundi can demonstrate a stable and secure environment during the summit, it could positively influence perceptions and encourage more fruitful economic collaborations in the region.
Editor: as an expert observing these developments, what immediate steps do you think the Burundian government must take post-summit to improve its economic situation?
Dr. Nkurunziza: The government must prioritize improving the regulatory framework to create a more favorable business environment. They should invest in critical infrastructure, enhance access to energy, and increase internet connectivity. Additionally, fostering regional partnerships could open channels for knowledge transfer and economic growth. A focused effort on these areas post-summit can help elevate Burundi from being a mere consumer market to a competitive player in the COMESA space.
Editor: Thank you, Dr. Nkurunziza, for shedding light on Burundi’s current economic landscape and the potential for growth within COMESA. We appreciate your insights and look forward to seeing how the summit unfolds and the changes it could inspire for Burundi’s future.
Dr. Nkurunziza: Thank you for the opportunity. Let’s hope for a productive summit that paves the way for a promising future for Burundi and all COMESA member states.