Regional Trade Facilitation Project - Burundi

closed

The Regional Trade Facilitation Project will contribute to poverty alleviation, through private sector led growth in the participating countries, by improving access to financing for productive transactions, and cross-border trade. The two components will: 1) Support the establishment of a regional political insurance facility, to be implemented, and managed by a multilateral agency, i.e., the African Trade Insurance Agency (ATI). The facility will cover productive activity involving cross-border trade, and, political/non-commercial risks, which include inter alia, inability to convert, or transfer currency; imposition of exchange controls; cancellation of licenses/restrictions on import/export; and, seizure of goods, prevention of sale, or of export. 2) ATI's operating, and capital costs will be shared by the participating countries, and a credit from the International Development Association (IDA) will cover the start-up period of ATI's operation. Each country's share will be proportional to the level of ATI's activity, related to transaction, covering imports into, and exports out of each country. A fund will be created for capital expenses to be incurred during the life of the project.