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Socio-Economic Context and Role of Agriculture: September 2015

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SEPTEMBER 2015

COUNTRY FACT SHEET ON FOOD AND AGRICULTURE POLICY TRENDS

Socio-economic context and role of agriculture

Burundi
Burundi is a small, landlocked country in central Africa with GDP growth rate has improved considerably since 2006. If
the second densest population in the region. The country political stability is maintained, projections indicate that real
has gone through a decade of civil war (1993-2003) which GDP growth can reach an average of 4.7 percent per year
had severe effects on economic and social conditions of the in 2015-16, mostly driven by agriculture and construction.2
population, with 90 percent of the population still currently Burundi has the potential to be self-sufficient in food
living on less than US$ 2 per day. Since early 2000, Burundi production, counting on assets like abundant rainfall, a
has committed to revitalize its economy and national unity, large farming population, an extensive network of lakes and
however the very recent political crisis that followed a failed rivers, and the possible market expansion within the context
coup in May 2015 could undermine this process.1 of the East African Community (EAC).3 Nevertheless, food
Following a decade of economic stagnation, Burundi’s and nutrition security is alarmingly under threat and over 50

Selected indicators 2007 2009 2011 2013


GDP (current billion US$) * 1.3 1.7 2.3 2.7
GDP per capita (US$) * 162.8 194.9 246.9 267.1
SOCIO-ECONOMIC

Agricultural value added (% of GDP) * 37.3 40.5 40.3 39.8


Agricultural value added (annual % (average 2007-2013) 0.97
growth) * (2013) 1
Total population (thousand) 8 328 8 927 9 540 10 163
Rural population (% of total) 90.1 89.6 89 88.5
Agricultural labour force (% of total labour force) 89.6 89.3 89 88.7
Human Development Index ** (2013) 0.389 (rank 180)
Per capita cultivated land (ha) 0.15 NA NA 0.14 (2012)
Area equipped for irrigation (ha) 23 000 (2012)
AGRICULTURAL PRODUCTION & TRADE

Value of total agriculture production (constant gross value 2004-2006, 1 489 1 789 2 074 1491 (2012)
billion US$)

FAPDA - Food and Agriculture Policy Decision Analysis


Value of cereals production (constant gross value 2004-2006, billion US$) 93 121 138 98 (2012)
Yield for cereals (hg/ha) 13 454 12 959 13 091 11 759
Cereal import dependency ratio (%) (2009-2011) 21.7
Top 3 commodities Production quantity Cassava; Bananas; Sweet potatoes (2012)
Production value Bananas; Cassava; Beans, dry (2012)
Import quantity Malt; Maize; Sugar refined (2011)
Import value Malt; Sugar refined; Sugar raw centrifugal (2011)
Export quantity Coffee, green; Beer of barley; Tea (2011)
Export value Coffee, green; Tea; Beer of barley (2011)
Top 3 trade partners Import value ^^ Italy; Saudi Arabia; Belgium (2012)
Export value ^^ Unspecified; United Araba Emirates; France (2012)
Top 3 commodities available for consumption (2011) NA
Per capita food supply (kcal/capita/day) NA NA NA NA
FOOD SECURITY & NUTRITION

General (g) and Food (f) CPI (2000=100) 161 (g), 151.6 (f) 221.5 (g), 220 (f) 260.6 (g), 259.8 331.7 (g), 326.3
(f) (f)
People undernourished (million) (2008-2010) NA
(2011-2013) NA
Proportion of undernourished (%) (2008-2010) NA
(2011-2013) NA
Prevalence of underweight children under 5 years of age (%) NA NA 29.1 (2010) NA
Prevalence of stunting among children under 5 years of age (%) NA NA 57.5 (2010) NA
Prevalence of wasting among children under 5 years of age (%) NA NA 6.1 (2010) NA
Global Hunger Index ^ (2014) 35.6 (extremely alarming)
Access to improved water sources (% of population) * 74 74 75 75 (2012)

Source: FAOSTAT; *Source: WB; **Source: UNDP; ^ Source: IFPRI; ^^Source: WITS. (accessed on 21 July 2015)

1 As of the end of June 2015, nearly 144 000 people have fled Burundi to neighboring countries. According to humanitarian agencies, the Burundian refugee population could reach
250 000 by September 2015. FEWS NET, Burundi remote monitoring report, 2015, available at: http://goo.gl/u0UWvZ .
2 Economist Intelligence Unit, Burundi Country Report, 2015. Available at: http://country.eiu.com/burundi
3 The country was traditionally self-sufficient in food production. IFAD, Enabling poor rural people to overcome poverty in Burundi, 2012, available at: www.ifad.org/operations/
projects/regions/Pf/factsheets/burundi.pdf
percent of children are chronically malnourished. According to the produce only every two years. Other cash crops include tea,
Global Hunger Index, in 2014 the country had the highest level of cotton, and sugar.
hunger out of 76 countries worldwide.4 Compared to the pre-war period, average per capita agricultural
Burundi’s economy is dominated by subsistence agriculture (90 production has more than halved, being among the lowest in
percent of total population). The main staple crops grown are the EAC region. Land fragmentation, declining yields, falling
banana, cassava, sweet potato and beans. Coffee is the main soil fertility, and low level of input utilization and of technical
export, accounting for more than 60 percent of export revenues, knowledge are major issues contributing to this decline.
but national production is in decline since ageing coffee orchards

1.  Government objectives in agriculture, food and nutrition security


“Vision Burundi 2025”, approved in 2011, is the government On January 2009, the government launched the Programme
long-term framework for the country’s comprehensive economic National de Sécurité Alimentaire (PNSA 2009-2015) in
and social development. The Vision foresees the installation of order to address increasing food insecurity and promote better
good governance, the development of a strong and competitive coordination among different public actors (such as the Ministry of
economy, and the improvement of living conditions of Agriculture, the Ministry of Finance, the Ministry of Environment,
Burundian people. It is based on eight inter-connected pillars: etc.). The programme aims to restore food self-sufficiency and
good governance and capacity-building of the state; human reduce vulnerability in the country, with the target of reducing
capital; economic growth and the fight against poverty; regional hunger and malnutrition by at least 50 percent by 2015, especially
integration; demographics; social cohesion; regional planning and among rural and peri-urban households.7
urbanization; and partnership.5 In April 2011, the government adopted a National Policy
In 2012, the Government launched its second Growth and of Social Welfare (Politique Nationale de Protection Sociale)
Poverty Reduction Strategy Paper (Cadre Stratégique that seeks to gradually extend sufficient social welfare in health,
de Croissance et de Lutte Contre la Pauvreté - CSLP II), education, water and sanitation to the entire population. The
as a continuation of the first CSLP of 2006, which places main interventions foreseen in the plan are the strengthening of
the challenges of growth and job creation at the centre of non-contributory key programmes such as cash transfers and high
governmental programmes. With regards to the agriculture sector, labour intensive public works, and building capacity and systems
the objective is to reduce its vulnerability to shocks and to boost its for the effective implementation of all the programmes with better
profitability. Agriculture development priorities include improving coordination.
access to inputs, restoring forest cover, rebuilding livestock herds, The “Stratégie Agricole Nationale” 2008-2015 and the
introducing drought-tolerant crop varieties and supporting “Plan National d’Investissement Agricole” (PNIA) 2012-2017
agricultural research and extension activities. The document constitute the references for strategic prioritization and investment
also highlights the importance of improving roads, providing planning in the agricultural sector. Their end goal is to enable
market intelligence, creating strong national cooperatives, and the transformation from subsistence farming to commercial
diversifying production by growing new export crops such as fruits agriculture through structural changes and the promotion of high
and vegetables.6 technical qualifications among all farmers.

2.  Trends in key policy decisions (2007 to 2014)


2.1  Producer-oriented policy decisions rates of productivity persist. The main policy trends in the field of
agricultural production in the country are as follows.
With an economy dependent on agriculture, investment in
the sector is crucial. The government has made agriculture State involvement in domestic market decreasing recently
a priority, committing to increase spending on agriculture to Notwithstanding a process of liberalization partly implemented
at least 10 percent of the national budget as per the Maputo since the beginning of the 1990s, State involvement in the
Declaration.8 Spending in the sector has increased, however low market remains significant. Semi-public enterprises and entities

4 IFPRI, Global Hunger Index, 2014, available at: http://ebrary.ifpri.org/utils/getfile/collection/p15738coll2/id/128360/filename/128571.pdf


5 UNDP, Vision Burundi 2015, 2011, available at: www.undp.org/content/dam/burundi/docs/publications/UNDP-bi-vision-burundi-2025_complete_EN.pdf
6 Cadre Stratégique de Croissance et de Lutte Contre la Pauvreté (CSLP II), available at: www.burundiconference.gov.bi/IMG/pdf/CSLP2_fr_web.pdf
7 Programme National de Sécurité Alimentaire (PNSA 2009-2015), available at : http://coin.fao.org/coin-static/cms/media/10/13231815575630/pnsa-complet-_definitif.pdf
8 Plan National d’Investissment Agricole (PNIA) 2012-2017. Available at: www.gafspfund.org/sites/gafspfund.org/files/Documents/Annex%203-Investment%20Plan%20PNIA%20final%20
-%20French.pdf

2 FAPDA COUNTRY FACT SHEET ON FOOD AND AGRICULTURE POLICY TRENDS | BURUNDI
©FAO/Giulio Napolitano
are present in most branches of commercial agriculture with
a dominant position in processing and marketing activities,
particularly through the fixing of producer prices for coffee, tea,
and cotton, among others. The Office du Thé du Burundi (OTB),
Sociétés de Gestion des Stations de Lavage du Café (SOGESTAL)9,
and Compagnie de Gérance du Coton (COGERCO) are examples
of these semi-public entreprises. These interventions have led to
market inefficiencies, as the presence of numerous intermediaries
inflates post-production prices above international market prices,
while farmers still receive low prices for their products and are
excluded from the decision process.10 Timid reforms have been
implemented recently under guidance from the World Bank, Burundi cultivated land. The country has the potential to be self-sufficient in food production, count-
ing on assets like abundant rainfall and a large farming population, among others. Nevertheless,
allowing the partial entrance of private operators in value chains, land fragmentation, declining yields and falling soil fertility are among the major issues contributing
for coffee in particular.11 to agricultural productivity’s decline.

analyses, however, national budget dedicated to agriculture and


Introduction of input subsidy programme
livestock sector has been significantly lower: the World Bank
In 2012, the Government launched the National Fertilizer Subsidy
Public Expenditure review of 2013 attests a level of agricultural
Programme (Programme National de Subvention des Engrais au
expenditure averaging 4.5 percent from 2009 to 2013.14
Burundi -PNSEB), with the aim to increase agricultural productivity
through greater input utilization in the country. The programme 2.2  Consumer-oriented policy decisions
benefits from financial aid from the cooperation agencies from
The population is still suffering from the consequences of the long
Germany, the Netherlands, Belgium and Japan, as well as from the
period of conflict (1993-2003). The healthcare system was almost
World Bank.12 A total of US$ 5.7 million expenditure was foreseen
entirely destroyed during the war, while disability, death from
in the 2014 budget law for subsidizing the purchase of 18 500
malaria, HIV/AIDS and other diseases increased. Notwithstanding
tonnes of fertilizers for 300 000 farmers of all crops (farmers
timid improvements, the level of food vulnerability remains
paying about 10 percent of the fertilizer market price). The target
extremely high, with more than 60 percent of the population
is to benefit 600 000 households annually, with up to 60 000
being at risk of food insecurity, particularly in the eastern and
tons of fertilizers supplied. Before the institution of the PNSEB,
northern regions.15
input distributions were implemented in the country on an ad hoc
and non-systematic basis. However, it appears that more robust Attempts to launch a national school feeding programme
impact assessments are needed to evaluate the effectiveness of No governmental school feeding programme is in place in the
the programme. country, and only some donors or NGO’s projects are implemented
in specific areas (the most important being the WFP School
Budget increases in support to agriculture and livestock
Feeding Programme, which, as of 2013, covered 10 percent of
According to official data, Burundi is among the countries which
school-attending children in primary school)16, constituting a
reached the target set by the Maputo Declaration to allocate
major policy gap. The government recently showed interest in
at least 10 percent of national budget to agriculture. During
developing and implementing a home-grown school feeding
the review period, the level of budget support to agriculture
programme, and asked for technical and financial support from
and livestock was maintained high, from 11 percent in 2009
main donors and partners in early 2015.17
to 11.3 percent for fiscal year 2015. 13 According to other

9 After the reforms, SOGESTAL is now one player among several others in the Burundi coffee value chain, and the Office du Café du Burundi (OCIBU) has been dismantled in 2010. Information on
SOGESTAL available at: www.biodiv.be/burundi/implementation/programmes-thematiques/biodiversite-agricole-1/institutions-agricoles-au-burundi/institutions-etatiques/societe-de-gestion-
des-stations-de-lavage-sogestal
10 WTO, East African Community (EAC) Trade Policy Review: Burundi, 2012, available at: www.wto.org/english/tratop_e/tpr_e/tp371_e.htm
11 The government began to liberalize and privatize the coffee sector and sold 13 coffee washing stations to a reputable international investor; more recently, 28 additional coffee washing
stations (out of the 104 stations remaining to be privatized) were sold mostly to local investors. World Bank, Republic of Burundi Public Expenditure Review - Policy Note Series, 2012, available
at: http://goo.gl/Rxscjz
12 www.vicepresidence2.gov.bi/spip.php?article138
13 Data from national Budget Laws.
14 World Bank, Burundi Public Expenditure Review, 2013. Available at: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/12/23/000333037_2014122323134
3/Rendered/PDF/ACS53930REVISE0ISH0VERSION012032013.pdf
15 IFAD, 2012, Ibidem.
16 WFP, State of school feeding worldwide, 2013. Available at: http://documents.wfp.org/stellent/groups/public/documents/communications/wfp257481.pdf
17 www.vicepresidence2.gov.bi/spip.php?article386

FAPDA COUNTRY FACT SHEET ON FOOD AND AGRICULTURE POLICY TRENDS | BURUNDI 3
Commitment to scale up nutrition global economic integration foreseen in the CSLP II, with some
On February 2013, Burundi joined the Scaling Up Nutrition (SUN) exceptions as mentioned below.
Movement committing to tackle the alarming levels of malnutrition
Regional trade agreements are in place but bottlenecks
in the country.18 Subsequently, the Multi-sectoral Food and
persist
Nutritional Security Platform (PMSAN) was established with the
Being a landlocked country, regional trade and integration is
intent of promoting commitment and accountability among all
essential for ensuring access to affordable and timely-available
national stakeholders (including public and private sector and
food. Burundi is thus part of an articulated system of regional
the international community). Information on governmental
agreements aimed, among others, at fostering trade within
nutrition-specific programmes is lacking. Notwithstanding recent
members. The country acceded to the East African Community
political commitment, infant feeding practices are still poor in the
(EAC) in July 2007 and to EAC Customs Union in 2009. As a
country, undernutrition and health diseases continue to be high,
result, the government reduced tariffs on wheat flour imported
and access to nutrition remains limited.19
from the EAC from 60 to 35 percent in July 2010. Burundi also
Adjustment of taxes belongs to the Common Market for Eastern and Southern Africa
As a response to the food price crisis of 2007/08, the government (COMESA), to the Economic Community of Central African
temporarily removed taxes on fuel for transport of goods with States (ECCAS), and the Economic Community of the Great
the objective to contain soaring food prices and revitalize the Lakes Countries (ECGLC). Nevertheless, several non-tariff barriers
agricultural sector. In July 2009, such taxes were reinstated, along (NTBs) are still in place in the country. Burundi could position itself
with the creation of the Office Burundais des Recettes - OBR and 20
as a trans-shipment hub for the region, however NTBs remain a
subsequent introduction of VAT for a wide range of goods and serious obstacle, especially regarding customs and administrative
products including energy, water and food. VAT on food products procedures, the length of clearance formalities and the large
was then temporarily removed in May 2012 for a period of six number of institutions involved in control operations at the port
months, and taxes on fuel were reduced in October 2012. Lastly, of Bujumbura.21
in August 2014, the government issued an amended Budget Law
Tariffs temporarily lifted in order to curb prices
N° 1/23 which increased both income and indirect taxes, as well
From February to December 2008, the government lifted tariffs
as repealed tax exemptions and tax credits.
on selected staples (i.e. groundnuts, cassava flour, fruits and
2.3  Trade- and market-oriented policy decisions vegetables, fish, potatoes, fresh meat, maize, maize flour, beans
and peas, fresh or dried cassava, sweet potato, onion and banana)
Government has implemented a relatively open trade policy
in order to smooth soaring food prices. From May to December
during the reference period, in line with principles of trade
2012, staple food imported form EAC countries was temporarily
liberalization, greater private sector involvement, and regional and
zero-rated in order to curb high food prices as well.

3.  Emerging issues and challenges


As mentioned, the government has implemented a number of poor access to credit.22 Low credit dedicated to agriculture is a
reforms during the review period, with a view to open the market and mayor bottleneck for development: the government budget has
reduce the fiscal deficit. The sustainable and effective implementation not financed agricultural credit for several years while commercial
of such reforms remains a major challenge for Burundi, whose banks’ lending to agriculture is extremely low, only around
institutional and human resource capacities are still limited. If not 1 percent of total lending. In this regard, the government has
adequately addressed, these limitations could undermine the entire recently approved a fund for agricultural micro-credit with an initial
reform process. Burundian Franc (BIF) 2 billion, for providing loan guarantees.
Regarding agricultural research and extension services, although
Rural credit and extension services need to be improved
such activities are financed by the government (8.6 and 7.6
Major constraints to smallholder farm production in the country
percent of government agricultural budget in 2011 respectively),
include inadequate extension and research services, as well as
they are generally of poor quality.23 Furthermore, there are few

18 REACH, Commitment by Burundi to improve nutrition governance, 2013, available at: www.reachpartnership.org/documents/312104/4e332927-577b-410a-9fa3-83c568820a60
19 World Bank, Nutrition at a glance – Burundi, 2010. Available at: http://siteresources.worldbank.org/NUTRITION/Resources/281846-1271963823772/Burundi.pdf
20 OBR was created in July 2009 with the stated objective to overcome the weaknesses of the old tax administration, to provide the state with more revenue, and to harmonize the Burundian tax
administration with EAC tax structures. This new tax authority replaced the former Departments of Taxes, Customs and Administrative Revenue and Portfolio capped by the General Directorate
of Revenue into one single entity.
21 World Bank, 2012, Ibidem.
22 Africa-Adapt, Improving African agriculture spending, 2013, available at: www.africa-adapt.net/media/resources/872/improving-african-agriculture-spending.pdf
23 Ibidem

4 FAPDA COUNTRY FACT SHEET ON FOOD AND AGRICULTURE POLICY TRENDS | BURUNDI
linkages between research services and extension, preventing Efforts to improve regional infrastructure need to be
farmers from getting the latest outcomes of research. stepped up
Transport and marketing infrastructure is inadequate in the
Land management issues
country: roads are in poor condition and links to neighbouring
More than 300 000 displaced people have returned to their
countries and international markets are still underdeveloped.
original villages in Burundi since 2002. Issues of land ownership
Budget allocated by the government to public works between
and lack of land complicate their reinsertion into the economy. Soil
2009 and 2013 averaged 2.6 percent of total budget, further
fertility is declining because land is over-exploited, and marginal
decreasing in 2012 and 2013.26 Poor rural infrastructure is among
lands are being used without leaving fields fallow. In addition,
the main causes of low agricultural productivity in the country, and
farm sizes are shrinking, forcing people to clear forested land and
prevents improvements in agriculture-related-value chains, among
drain wetlands (forest cover declined from 8.2 percent cover in
others.27 Burundi has recently joined a multi-national railway
1992 to 6.3 percent in 2006).
project together with Rwanda and Tanzania, within EAC regional
In 2011 a new Code of Land Tenure24 replaced the previous
integration process. The new railway network will connect Isaka
one in place since 1986. The Government has reviewed the code
in Tanzania to Kigali in Rwanda, and Keza and Gitega in Tanzania
to facilitate its application and help revitalize the agricultural
to Musongati in Burundi. The three governments will collectively
sector through the consolidation of agricultural holdings and the
fund the development of the new regional railway line and its
establishment of a genuine land market through greater respect
link to the Central Corridor Railway network that connects to the
for tenure rights, in order to encourage rural lending. According
Port of Dar es Salaam.
to other sources, a vast land reform should be encouraged instead
of a simple revision of the Land Tenure Code, in order to grant a
more equal access to land which is still lacking in the country.25

©FAO/Giulio Napolitano

Daily life in the Villages Ruraux Integrées (VRI). The houses seen in the background were built by the government to house the internally displaced persons returning to Burundi.

24 Law n. 1/13 of 9 August 2011.


25 International Crisis Group, Les terres de la discorde: la réforme foncière au Burundi, 2014. Available at : www.crisisgroup.org/~/media/Files/africa/central-africa/burundi/213-les-terres-de-la-
discorde-i-la-reforme-fonciere-au-burundi.pdf
26 WB, 2013. Ibidem.
27 According to the World Bank, improved infrastructure across the continent could increase economic growth by 2 percent a year.

FAPDA COUNTRY FACT SHEET ON FOOD AND AGRICULTURE POLICY TRENDS | BURUNDI 5
MAIN RECENT STRATEGIES AND POLICIES RELATED TO AGRICULTURE AND FOOD SECURITY AND NUTRITION (FSN)

Multi-sectoral Food and Nutritional Security Platform (PMSAN) is created, 2013

Food and fuel taxes are intermittently repealed to contain soaring food prices , 2007-2012

New Code of Land Tenure, 2011

Burundi Revenue Authority (OBR) is created, 2009

National Fertilizer Subsidy Programme (PNSEB), since 2012

2005 2010 2015

Accession to the East African Community (EAC), 2007

Accession to EAC Customs Union, 2009

Food tariffs temporarily lifted in 2008 and 2012

Accession to Common Market for Eastern and Southern Africa (COMESA), 2004

“Vision Burundi 2025”, approved in 2011


Growth and Poverty Reduction Strategy Paper, (CSLP , 2006)
Growth and Poverty Reduction Strategy Paper II , (CSLP II, 2012)
National Food Security Programme, (PNSA 2009-2015)
National Policy of Social Welfare, (PNPS, 2011)
National Agricultural Strategy, (2008-2015)
National Agricultural Investment Plan (PNIA 2012-2017)

Consumer oriented Producer oriented Trade and market Strategic frameworks on agriculture and FNS

The FAPDA initiative promotes evidence-based decision making This brief was prepared by the Food and Agriculture Policy Decision Analysis
by collecting and disseminating information on policy decisions (FAPDA) team at FAO, with contributions from the Monitoring and Analysing
through a freely accessible web-based tool. For more information, Food and Agricultural Policies (MAFAP) team. Information reported in this brief
please visit: derives from the FAPDA Tool and the review of primary and secondary data
sources.
6www.fao.org/in-action/fapda FAPDA COUNTRY FACT SHEET ON FOOD AND AGRICULTURE POLICY TRENDS | BURUNDI
www.fao.org/in-action/fapda/tool © FAO, 2015
or contact us at: fapda@fao.org I4909E/1/09.15

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