By Triphomus Muyagu
Following the recent decision made by Burundi to sever trade ties with Rwanda, Rwanda will trade with other regional countries. The remarks have been made by trade minister, Francois Kanimba.
“The Burundian government decided to ban exports to our country but this has little impact on our economy; the products that have been imported from there can be got from Uganda and Tanzania,” Kanimba said.
Kanimba affirmed that Burundi’s decision is a violation of the EAC treaty on common market protocol among member states.
The EAC Common Market protocol was effected on July 1, 2010 following ratification by all the six partner countries.
Rwanda has been exporting manufactured products, maize, cassava flour, milk, potatoes, unprocessed maize flour and wheat flour to Burundi. In turn, it was mainly importing fruits from Burundi such as mangoes and oranges, dried silver fish and palm oil.
Daniel Fred Kidega, the East African Legislative Assembly (EALA) Speaker, said the Communications Trade and Investment Committee shall ascertain facts of Burundi’s decision.
“It is important to add that the region is implementing the customs union and the common market. It would be counterproductive for partner states to deprive citizens of the associated benefits,” Kidega said.
Burundi’s economy
Burundi is one of the poorest, smallest, and most densely populated nations in Africa. Its poor transportation system and its distance from the sea have tended to limit its economic growth.
The economy is almost entirely agricultural, especially subsistence farming. Major crops include corn, sorghum, sweet potatoes, bananas and manioc.
Coffee, the country’s chief export, accounts for 80% of its foreign exchange income. Cotton, tea, sugar, and hides are also exported. Cattle, goats, and sheep are raised.
The country’s industries include food processing, manufacturing of basic consumer goods such as blankets and footwear, assembly of imported components and public works construction. Bigger industries are government-owned.
Burundi relies on international aid for economic development and has incurred a large foreign debt. Nickel, uranium, and other minerals are mined in small quantities; platinum reserves have yet to be exploited.
Burundi’s imports (capital goods, petroleum products, and foodstuffs) considerably exceed the value of its exports.
Germany, Belgium, Kenya, and Tanzania make up its chief trading partners. Most exports are sent by ship to Kigoma in Tanzania and then by rail to Dar-es-Salaam on the Indian Ocean.