COFFEE SECTOR

closed

The Coffee Sector Project, which will be implemented over a five year period, has as its principal objective the improvement of the earning ability of Burundi coffee, the country's principal export crop. To achieve this the project will : a) implement a package of institutional and financial reforms to improve the efficiency of the industry, while opening it up to private investors; and b) increase the coffee export value through investments in coffee washing stations, coffee research and training. Major actions will include : 1) creation of a regulatory authority ( Office du Cafe ) to replace the present OCIBU; 2) establishment of 5 autonomous companies ( SOGESTALs ) specialized in the management of coffee washing stations and 1 autonomous company ( SODECO ) to operate the existing two hulling factories; these companies as well as the washing stations, will be open to private ownership; 3) establishment of an Assets Management Facility to centralize the administration of Government owned physical assets in the industry; 4) establishment of an incentive based payment system for producers and intermediaries and, for the Government, establishment of a direct export tax; and 5) establishment of a parallel export marketing facility for private exporters to compete with the state owned BCC.