Report No: ACS14147 . Public Disclosure Authorized Republic of Burundi Strategies for Urbanization and Public Disclosure Authorized Economic Competitiveness in Burundi . June 19, 2015 . GSURR Public Disclosure Authorized AFRICA . Public Disclosure Authorized Strategies for Urbanization and Economic Competitiveness in Burundi Standard Disclaimer: . This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. ii Strategies for Urbanization and Economic Competitiveness in Burundi Strategies for Urbanization and Economic Competitiveness in Burundi iii © 2014 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org 1 2 3 4 15 14 13 12 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Cover photos: Top: ©SuSanA Secretariat, “Newly constructed houses in Gitega” https://www.flickr.com/photos/gtzecosan/6908561067 Bottom: ©Stefan Krasowski, “Burundi Bujumbura” https://www.flickr.com/photos/rapidtravelchai/15948418259 http://creativecommons.org/licenses/by/4.0/ Some rights reserved. Strategies for Urbanization and Economic Competitiveness in Burundi Contents Acknowledgements .................................................................................................................... 8 Acronyms and Abbreviations ................................................................................................... 9 Executive Summary .................................................................................................................. 11 1. Setting the Stage .................................................................................................................... 18 2. Urbanization in Burundi: Trends and Perspectives ....................................................... 23 Urbanization does not seem to be accompanied by any structural changes in the economy ... 25 Weak land property rights in areas out of the core of main cities ................................................ 27 Urbanization is contributing to improvements in living conditions ............................................ 29 Summary ............................................................................................................................................... 40 3. Prioritization for Urban Economic Growth and Job Creation ..................................... 42 Agribusiness Sector Assessment ........................................................................................................ 47 Analysis of the generalized structure of value chains in agriculture in Burundi .............................. 51 Constraints affecting production ........................................................................................................ 54 Constraints affecting processing ......................................................................................................... 55 Tourism Sector Assessment ................................................................................................................ 56 A. Governance and Enabling Environment ....................................................................................... 57 B. Infrastructure and Service Inputs .................................................................................................. 60 C. Tourism Products and Services...................................................................................................... 60 D. Capacity and Skills Development .................................................................................................. 63 Supporting Drivers: Logistics and Construction ............................................................................. 65 Logistics .............................................................................................................................................. 65 Construction ....................................................................................................................................... 67 4. Implementation Strategies .................................................................................................. 70 Horizontal Interventions ..................................................................................................................... 70 Institutional Policies and Reforms ...................................................................................................... 70 Investments in Infrastructure ............................................................................................................. 75 Vertical Interventions .......................................................................................................................... 80 Catalyzing the development potential of the tourism sector ............................................................... 80 Catalyzing the development potential of the agro-business sector...................................................... 91 5. Conclusions ............................................................................................................................ 98 Getting it done and generating impact ............................................................................................. 98 Annexes ..................................................................................................................................... 109 ANNEX 1: The rate of Urban Population Growth in Burundi .................................................... 109 v Strategies for Urbanization and Economic Competitiveness in Burundi ANNEX 2: Crops Production - distributions ................................................................................. 110 ANNEX 3: Preliminary assessment of opportunities for sub-sectors with agribusiness in Burundi ................................................................................................................................................ 114 ANNEX 4: Tourism Indicators of EAC Member Countries ......................................................... 132 ANNEX 5: Bujumbura Lakeshore Development Plan ............................................................... 134 ANNEX 6: Bujumbura Urban Core Waterfront Development Plan ........................................ 135 ANNEX 7: Sector Selection Note .................................................................................................... 136 References ................................................................................................................................. 144 Notes .......................................................................................................................................... 147 Boxes Box 1. Enabling urban development ..................................................................................................... 34 Box 2. Post-Conflict Tourism Development: When is it time to develop the sector? ..........................................................................................................................................