BUJUMBURA August 14th (ABP) – The Cabinet Members met on Wednesday August 9, 2023 in Gitega, under the chairmanship of the Head of State, Evariste Ndayishimiye.
According to the press release issued by the General Secretariat of the Government, among the items analyzed are the note relating to the purchase of shares and the legal compliance of SOCABU, presented by the Minister of Finance, Budget and Economic Planning, Audace Niyonzima, and a technical note on the need to enhance old State woodlots including that of Gakara-Gahuni, presented by the Minister of Environment, Agriculture and Livestock, Sanctus Niragira.
Regarding the purchase of shares, two shareholders have announced the desire to sell all of their shares held in the company SOCABU. These are the Belgian shareholder BOELS and BEGAULT and the shareholder Interbank-Burundi. Before the purchase of those shares, the State of Burundi will increase its investment in SOCABU, by 10.54%, to have a total of 46.65% in the share capital of SOCABU, which will result in the increase in dividends received per year. It is proposed that the government accept the purchase of those shares. This acceptance would also cover other cases of sale similar to SOCABU that may be of interest to the State of Burundi.
Concerning the legal compliance of SOCABU, it is the implementation of Law No. 1/02 of January 7, 2014 on the insurance code in Burundi which, in its article 327, stipulates that “no company may carry out the operations of the life and capitalization branches and those of the non-life branches at the same time”. SOCABU is legally obliged to manage its activities in two separate branches. Given the imperative nature of the provisions of the law cited above, SOCABU wants to comply with this law by splitting the company into two entities, administratively and financially distinct and independent, as required by law.
The Cabinet Members accepted the proposals of the note with the recommendation that all the capital contributions of public companies in the various public companies be registered in the name of the Burundian State.
Concerning the technical note on the need to enhance the old State woodlots including that of Gakara-Gahuni, the forest massif of Gakara currently covering an area of 1150 hectares. It was installed during the period from 1980 to 1983.
The note has been prepared to enlighten the government of Burundi so that it can appreciate the need for the recovery of those old woodlots, especially since non-recovery leads to enormous losses due to overturning or breaking of trees by the wind as well as the actions to be considered in the context of replanting in those spaces. That development is preceded by the determination of the estimated volume of standing timber, and in the event of sale, the value is estimated at sixty-five billion, eight hundred thirty-four million, two hundred and fifty-seven thousand, three hundred and twenty Burundi francs (65,834,257,320 BIF).
The replacement will take place over 12 years at a cost of one billion three hundred and sixty-three million five hundred thousand Burundi francs (1,363,500,000 BIF). After discussion and debate, the Cabinet Members issued observations and certain recommendations. The recovery of old woods that are in the process of degrading, is necessary.
Accompanying measures for that recovery must be taken in order to deal with the consequences that may arise such as erosion, flooding in the lowlands, drought and others.
The Cabinet Members saw the need for a commission which will be responsible for studying in depth the economic and environmental aspect of the development of all the old afforestation in the country. It will have, among other things, a mission to study the entire value chain of those trees and to make appropriate proposals so that the public treasury benefits from them.
Its contribution will make it possible to decide on the valuation of the woodlots found in the other provinces. The minister in charge of the environment and the minister in charge of finance will identify the members who can constitute that commission.