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An Infrastructure Action Plan for Burundi Accelerating Regional Integration

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An Infrastructure Action Plan for Burundi Accelerating Regional Integration An Infrastructure Action Plan for Burundi Accelerating Regional Integration September 2009 African Development Bank An Infrastructure Action Plan for Burundi Accelerating Regional Integration September 2009 An Infrastructure Action Plan for Burundi – Accelerating Regional Integration ??? 2 An Infrastructure Action Plan for Burundi – Accelerating Regional Integration Foreword he 53 countries that make up the African region The Report is important for several reasons. Thave a combined gross domestic product of First, it provides the Government, the donor $1.1 trillion - a not insignificant market. The striking community and the private sector with a detailed characteristics of the region are the low-level of assessment of infrastructure investment intra-Africa trade, despite the size of the continental opportunities in Burundi and the wider region. It economy, the array of impediments to market proposes an Action Plan to develop these integration, and the poorly develop ed network of opportunities, and in so doing, helps fill the gap con tin ental infrastructure, es pecially in the areas created by the absence of master plans for the of electric power, transport and communications. development of the electric power, transport and There is a compelling case for much greater communications sectors. It can therefore be used emphasis on measures that will accelerate to inform and support the Government's ongoing economic integration within the continent. African dialogue with donors and the business community countries are increasingly realizing the advantages about the further development of these sectors. of regional co-operation and integration as a Increased coordination within this partnership can strategy to achieve economic growth and improve the alignment of investments with the collectively to play a more important role in the national objectives, as set out in Burundi's Poverty global economy. To this end, African countries and Reduction Strategy Paper (PRSP) of 2006, and governments, through regional economic regional priorities for infrastructure development communities and the African Union, are pursuing within the EAC. In this way, the Report can an agenda of continental integration along a road contribute to the overall efficiency of the map of establishing free trade areas, customs development process in Burundi. unions and common markets. The African Development Bank (AfDB) recognizes that policy Second, the Report has wider application within actions and investment in infrastructure have Africa. It provides an integrated framework within important roles to play in the development of which to assess the infrastructure requirements of continental trade and in promoting economic a country, the investment and maintenance costs linkages within Africa. In recognition of this fact, associated with these requirements, and the the development of Africa's infrastructure and human and institutional capacity building required economic integration are key components of the for successful design and implementation of such strategic direction being pursued by the Bank. a program. The Report also examines the links between infrastructure and key production sectors The focus of this Report is on the services of the economy that have high growth potential, associated with electric power, transport and including mining, commercial agriculture, and communications infrastructure in Burundi. The specific opportunities within the industrial sector. Report includes a detailed examination of the This type of analysis can be used in other countries current status of the infrastructure and services in to translate broad objectives for infrastructure these three sectors in Burundi and the extent of development, as set out in PRSPs or national links to the infrastructure networks of the other development programs, into tangible programs members of the East African Community (EAC). for action that can accelerate growth and Even more than in other countries of Sub-Saharan economic integration. Governments are then better Africa, access to these services is limited to a placed to mobilize financial and technical support relatively small part of the population, the cost of within the donor community and among the services is high and, in the particular case of international investors. electric power, the available services are unreliable. Successful implementation of the proposed The Report is the first of a series of country and program over the next two decades will close the regional studies that the African Development Bank substantial infrastructure gap between Burundi (AfDB) will prepare to assist member governments and other developing countries and lay the in identifying measures that they can take, foundation for an extended period of strong individually and collectively, to close the economic growth within the country. infrastructure gap and accelerate integration of 3 An Infrastructure Action Plan for Burundi – Accelerating Regional Integration their economies. Wider application of the the Burundi report, these action programs can framework used in this Report will make an then be used to formulate activities to be important contribution to this program. The supported by the governments concerned, by initiative reflects the intention of the AfDB to donors, and by private investors. strengthen its capacity for analyses of individual country conditions, as well as regions within Africa and the continent as a whole. In this way, the AfDB will enhance its role as a Knowledge Bank for Africa - a service of benefit to all members. To achieve this important objective, the Bank intends to build internal staff capacities and support efforts of member governments to build their own internal Aloysius Uche Ordu capacities for analysis that can underpin effective Vice President for Operations I, Country policy-making and translate national development and Regional Programs and Policy strategies into tangible programs of action. As with African Development Bank Group 4 An Infrastructure Action Plan for Burundi – Accelerating Regional Integration 5 An Infrastructure Action Plan for Burundi – Accelerating Regional Integration Preface he main report is divided into two distinct parts. The African Development Bank and the World Bank T The four chapters of Part A provide an overview are collaborating on the preparation of a Country of the proposed Action Plan, along with its costs Economic Memorandum (CEM) for Burundi. The and expected benefits. Part B, which consists of relevant findings of this Report on infrastructure will three chapters, gives the details of the programs be integrated into the forthcoming CEM. Because proposed for the electric power, transport and of these links to the ongoing work by AfDB and communications sectors. Nine annexes to the World Bank staff on the CEM, and the need to avoid Report with detailed background information are duplication of effort, this Report does not address available separately in an electronic format. These a range of more general issues about the economy; annexes, along with the maps included in the main for example, it does not attempt to put the proposed report, are available on the website of the African infrastructure investment program into a broader Development Bank. context about future priorities for development spending in the national budget and by the donor They can be accessed at: community. These aspects of development policy http://www.afdb.org/en/countries/ and resource allocation will be addressed in the east-africa/burundi/ CEM. 7 An Infrastructure Action Plan for Burundi – Accelerating Regional Integration Acknowledgements he Report has been prepared under the guidance The team benefited greatly from the support and Tof Christian Lim, Economist in the East Africa assistance of many officials within the Regional Department ‘A’ of the AfDB (OREA), who is Government of Burundi, including the following: responsible for Bank activities in Burundi and Task Nestor Barasokoroza, Alexis Bizimungu, Didace Manager for the activity. The primary author of the Birabisha, John Dikumwami, Vital Narakwiye, report was Russell Cheetham, President of the Asia- Pierre Ndamama, Jean Ngendakuriyo, Nestor Pacific Investment Services Corporation, and Lead Niyuongeko, Richard Nkurunziza, Joseph Consultant to the Department for this assignment. Mr. Ntirandekura, Idi Pressadi, Jean Rigi, Damien Lim also made major contributions to the Report itself Riragonya, Emile Sinzumusi, and Ministers by conducting consultations with the Government, the Anatole Kanyenkiko, Samuel Ndayiragije and donor community and other stakeholders in July and Philippe Njoni. Dorsati Madani and Hannah August, 2009, and undertaking a detailed analysis of Nielsen, Managers of the Burundi CEM project the prospects for the nickel mining industry in Burundi. for the World Bank, have made significant Other members of the team were Prime Nyamoya and contributions to this work by fostering close Jérôme Ngambiri, Consultants located in Bujumbura, collaboration and providing insightful comments. Burundi. Messrs Nyamoya and Ngambiri played major The Report also benefited from peer reviews by roles in collecting and verifying a large amount of the the following staff from the World Bank: Eric data used in the Report from a wide variety of sources Mabushi, Daniel Benitez, Déo-Marcel Niyungeko, within Burundi. Jean-Pascal Nganou, as well as Eric Donni from the European Union. Other contributors include: The work undertaken for this Report was initiated
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