3 October 2007
Bujumbura — The 34 percent increase in salary for civil servants will go into effect starting with the month of January 2008, the finance ministry indicates.
The finance ministry also stresses that by that time the government will have collected enough funds so as to be able tot to increase the salaries of civil servants.
This increase does not affect workers of government-owned institutions which are managed autonomously. Only workers ruled by the statuses of civil servant will have their salaries increased.
Some workers of government owned institutions such as the University of Burundi have started to ask to receive this increase also, claiming that their salaries are very low.
The confederation of Burundian trade Unions (COSYBU) has already asked the President of the Republic to give a deadline for the payment of increase with retroactive effect.
Secondary school teachers have threatened to go on strike if the government fails to meet their demands which include the payment of the increase.
The Head of State promised the 34 percent increase in salary for civil servants on labour day, May 1st, 2007. This promise would have gone into effect starting July 2007. The Head of State made this promise on the assumption that donors would back Burundi financially.
Failure to implement the Priority Action Plan discouraged donors. The International Monetary Fund refused to back this increase on the ground that Burundi's finances were not sufficient to cover it. The IMF conditioned the backing with the increase of the prices of commodities of the first necessity.
The prices of sugar and beverages were increased, consequently raising the prices of other products on the domestic market.
In the meantime, imports have diminished by more than 23&percnt during this year compared to the tumultuous year of 2004 during which donors refused to back the transitional government whose management of the country's assets was chaotic.
This slump is not caused by any increase in exports, but rather by the current government's refusal to allow more than 2000 traders to get any loans from local banks.
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