Category: Uncategorized

In a press conference held yesterday in Bujumbura on the project “Promoting Agriculture, Climate and Trade Linkages in East African Community, Second Phase (PACT- EAC2)”, Severin Sindayikengera, director of the national food technology centre (CNTA) explained that Burundi is facing many challenges in relation to the promotion of the industrial agriculture. He mentioned here the lack of energy, insufficient raw materials and the absence of the private sector’s involvement as well.

This lecturer at the University of Burundi also mentioned the shortcomings in the quality control.
“We observed that many production units are re-using old packaging with very harmful consequences on consumers’ health.” He gives an example of different kinds of juice or drink industrially made in Burundi, that are sold in bottles of “ Heineken” brand.

Another challenge he pointed out is the reluctance of commercial banks to provide credit to farmers so as to increase their agricultural production.

Signs of hope

Severin Sindayikengera believes that Burundi has the main agro-industrial development potential for fruit, vegetables and palm oil compared to other EAC member states.

In the same sense, Jean Bizimana , the deputy director at the rural training centre (CFR) of Giheta in the central province of Gitega says that palm oil generates BIF 8 billion to producers and $ 2.5 million of tax revenue every year.

The director of CNTA also put his hope on hydroelectric dams being built. According to him, this shows that very soon, the energy issue will be solved.

As for the lack of raw materials, he believes that Burundi will import it as it is the case for Minolac company of Muramvya , which imports much of its raw materials.

“To get there, we must start with small agricultural plants. We should also encourage the private sector to participate more actively in agro- industrial development.”

Godefroid Manirankunda, the national coordinator of PACT- Project EAC2, classifies Burundi in the 4th position like Rwanda in comparison with other EAC member states. However, he highlighted that Rwanda was able to fill this gap by developing considerably the sector of goods and services such as tourism, hospitality, Internet, transportation, etc.

KAMPALA. Gathered in the Ugandan capital city until today, high-level officials, experts and agro-entrepreneurs from all corners of East Africa considered policy options for making agro-processing in the region more climate-aware, trade-driven and food security enhancing. The regional meeting, jointly organised by CUTS International and SEATINI, helped identify necessary policy actions to be pursued over the next three years under the regional project “Promoting Agriculture, Climate and Trade Linkages in the East African Community – Phase 2” (PACT EAC2).

“We meet today to learn how the PACT EAC2 project can help to achieve positive climate-food security- trade linkages in agro-processing sectors, and how to best leverage current trade and climate negotiations at the multilateral level,” said yesterday Hon. Werikhe Kafabusa, the Ugandan Minister of State for Trade.

According to him, “Climate change and its detrimental impacts are an undeniable reality we face in the EAC, affecting productivity and trade competitiveness across many sectors.” He was joined by Hon. Jesca Eriyo, Deputy Secretary-General for Productive and Social Sectors of the East African Community, who emphasised the need for creating capacities in agro-processing to create jobs, add value to East African products, and reduce post-harvest losses. Indeed, the Private Sector Foundation Uganda estimates that almost 65% of agricultural production is lost post-harvest.

“I am happy that CUTS and its partners have decided to take up my suggestion to address such policy coherence issues in the Agro-processing sectors,” she said.

The still infant agro-processing industry in East Africa has been earmarked as having huge potential for poverty reduction, growth and regional integration. The region’s success in realising this potential will partly depend on its ability to factor in the ever-increasing challenges posed by climate change, and work in synergy with its own trade agenda. “We all agree that climate change is real, and that agro-processing is the way forward. These issues are intertwined,” said Hon. Fred Mbidde Mukasa, Chair of East African Legislative Assembly’s Committee on Communication, Trade and Investment.

Under spotlight were some key promising sectors such as horticulture, fruits, palm oil, roots, tubers and bananas. Experts shared emerging policy research lessons on how these sectors – and agro-processing more generally – can become more climate-aware, trade-driven and food security enhancing. For instance, Ms. Elisabath Tamale, currently undertaking a research study on the matter for the PACT EAC2 project in Uganda, pointed to some climate change adaptation strategies for agro-processing such as adopting new technology and plant varieties. Adaptive production techniques such as terracing, use of manure, drainage, water channels, and soil management through mulching were also highlighted.

In an ideal scenario, trade policies should ensure the availability of inputs despite climate change, markets for the processed products and access to cleaner technologies; while climate change policies support this effort through targeted adaptation and mitigation initiatives. It was emphasised that the role of international trade and climate negotiations in framing the policy space for such policies should not be overlooked.

“Following last years’ Paris Climate Conference, East African agro-processing could benefit from enhanced international finance for tackling climate change,” said climate negotiator Michael Okumu of Kenya. In particular, he noted that “from 2020, at least USD100 Billion per year should be available under the Green Climate Fund.”

In a session moderated by the Head of UNCTAD’s Regional Office for Africa, Dr. Joy Kategekwa, East African negotiators to the World Trade Organisation (WTO) in Geneva reflected about the potential implications of last year’s Nairobi agreement and the outlook for multilateral trade talks. Besides foreseeing a potential intent to discipline domestic agricultural subsidies at the next ministerial conference, trade negotiators also stressed the need to start implementing some of the advances already secured for East African countries.

In his closing remarks today, H.E. Christopher Onyanga Aparr, Ambassador of Uganda to the UN and other IGOs in Geneva, recalled that “Besides the recent WTO Nairobi conference, other major recent conferences such as COP21 and the UN Agenda 2030 have embraced the subject matter we have discussed in this meeting.”

The project “Promoting Agriculture, Climate and Trade linkages in the EAC – phase 2” (PACT EAC2) builds capacities of East Africans for climate-aware, trade-driven and food securityenhancing agro-processing in their region. Until 2019, the project brings together, informs, trains and moves to advocacy action hundreds of stakeholders from the government, businesses, civil society, media, academia and farming communities. The project is supported by the Swedish International Development Cooperation Agency (Sida), represented at the event by Ms. Fantu Farris who appreciated “the modesty of CUTS’ approach, which puts stakeholders at the centre as agents of change.”

“There is a need to orient trade policies in ways that encourage and facilitate trade by SMEs, with flanking measures enabling them to drive innovation and integrate in value chains” said today the Secretary-General of CUTS International, Pradeep S Mehta, while opening a debate at this week’s WTO Public Forum in Geneva.

SMEs are one of the biggest contributors to employment and growth, representing over 70 per cent of all employment opportunities globally and as much as 90 per cent of all employment in low-income countries. Despite the growing importance of SMEs at the national level, their interests are not properly considered at the multilateral level and their participation in global value chains is yet to be fully developed.

As explained by Rajesh Aggarwal of the International Trade Centre (ITC), “While forward integration of African SMEs is high, as exemplified by their exports of raw materials to Europe, backward integration has remained low.”

A country’s trade policy can be an effective tool to enhance SMEs’ participation in global trade. Experiences such as Bangladesh’s garment export industry suggest that national governments are re-evaluating their trade policies to reduce barriers to trade for SMEs. “A key contributor to this success was our trade policy decision to drop duties on imports geared towards garment exports.” said Mostafa Abid Khan, Minister at the Permanent Mission of Bangladesh in Geneva. “Duty drawbacks are another popular tool in South Asia, although it is more cumbersome”, he added.

The success and growth of SMEs is particularly important for the reduction of poverty in the developing regions of Africa and South Asia, particularly women-owned SMEs which play an equal, if not more, important role. Women’s entrepreneurship is an under-utilised source of growth and poverty reduction. In Africa, while they are actively involved in agriculture, women’s ownership of business ranges from 4% in Eritrea to 60% in Côte d’Ivoire. According to gender and trade expert Mona Shrestha Adhikari, “one third of the world’s SMEs are women-owned businesses, but they are stuck at the bottom of the value chain because they lack access to education, skills and finance.”

Women entrepreneurs in developing countries also have poor access to marketing networks, capital, credit and technical expertise, in addition to cultural and structural barriers. “Every country should look at trade policy through the gender lens, and ensure women participate in the policy making process”, Ms. Adhikari said.

Flanking measures in related policy areas are also required, as SMEs are often restricted due to the unavailability of credit, stringent customs and compliance procedures, lack of awareness, as well as business and IT skills etc. Besides gender equality, “other areas to link with trade policy may include digital economy, access to finance, informality and competition policy,” suggested Marcus Bartley Johns, Senior Trade Specialist at the World Bank.

This session titled “Trade Policy: A tool to facilitate the participation of SMEs in global trade”, organised by CUTS International, aimed to facilitate the exchange of best practices, industry opinions, policy making hurdles, and the role that the WTO can play to help Member countries to orient their trade policies. Through over 100 events, the global trade community gathering this week in Geneva for the 2016 WTO Public Forum is reflecting on how to ensure that trade benefits everyone. In particular, women, innovative start-ups and SMEs should be able to leverage trade opportunities.