IGITOROPASS and the Fuel Crisis in Burundi: A Solution or a Temporary Fix?
In our recent article discussing Burundi’s fuel shortage, we questioned whether SOPEBU (Société Pétrolière du Burundi) might be the solution to this long-standing issue.
This debate was addressed on Radio Bonesha on November 23, 2024, by Gabriel Rufyiri, president of OLUCOME, an Anti-Corruption and Economic Malpractice Observatory. Rufyiri argued that “SOPEBU is a crisis management strategy rather than a solution to the fuel shortage that has plagued Burundians for over four years.”
Established on February 24, 2024, SOPEBU began its operations on March 14, tasked with developing Burundi’s petroleum sector. Its key responsibilities include planning and coordinating orders for petroleum products, establishing a strategic stock for quarterly consumption, and ensuring fair distribution across localities. It also focuses on importing petroleum and gas products, managing storage and transportation, and maintaining product quality.
Additionally, the company seeks to identify re-export markets in case of excess stock and aims to build partnerships for sector development. It plays a crucial role in the importation, marketing, and management of petroleum products and their derivatives.
However, its creation has been met with scepticism. Economists and activists cite the failure of other public entities to provide dividends or remain solvent, raising doubts about the viability of SOPEBU as a sustainable solution.
Seven Months In – Challenges Persist
Seven months after its launch, SOPEBU has yet to resolve the crisis. Instead, it introduced “Igitoro Pass,” a digital fuel management tool, to curb hoarding and black-market sales. The app allocates weekly fuel allowances based on activity type. However, it has faced criticism for its inefficiency, particularly due to internet disruptions and power outages.
IGITOROPASS provides no benefits
Charles Ntirampera, executive director at ATRABU, notes that the app has not eased the crisis. He shared an example of a driver discovering an empty fuel tank despite not refueling for weeks. Ntirampera added that his transportation company, VOLCANO, has seen revenues plummet from FBU 6.67 billion in 2021 to just FBU 418 million in 2024.
Minister of Hydraulics, Energy, and Mines Ibrahim Uwizeye defends Igitoro Pass as a tool to prevent fuel hoarding but admits it’s a crisis management measure, not a permanent fix.
Broader Criticism
Critics like Anicet Niyonkuru, president of the CDP (Conseil des Patriotes) party, argue that the app adds to citizens’ burdens by requiring expensive smartphones and was rolled out without adequate trials.
Niyonkuru also accuses the government of misleading the public, claiming SOPEBU tanks are empty despite assurances of fuel availability.
Proposed Solutions
Gabriel Rufyiri suggests four key measures to address the crisis:
-Forming a multidisciplinary expert committee to provide actionable recommendations.
-Borrowing $500 million to meet monthly fuel needs of $30 million.
-Reducing foreign missions by government officials to conserve foreign currency.
-Leveraging mineral resources, particularly nickel, to generate revenue, albeit with transparency to prevent mismanagement.
Despite Rufyiri’s call to leverage mining as a solution to the foreign currency shortage, a recent good governance report has highlighted inconsistencies between the Bank of the Republic of Burundi and the Burundian Revenue Authority (OBR) concerning revenue from mineral resources. Although the government anticipated receiving BIF 26 billion for the financial year 2023-2024, only 6 billion was credited to its account. Meanwhile, the OBR reported that it had verified only 55 million of that amount.
A Call for Action
The fuel crisis has led to skyrocketing inflation, impacting essential goods and services. As prices rise, Burundians face worsening economic conditions.
Rufyiri, Ntirampera, and Niyonkuru emphasize that resolving the crisis requires decisive government action. The fuel crisis in Burundi has led to a host of challenges, significantly driving up inflation across various sectors, including food, construction materials, and other essential goods. Without substantial efforts, Burundi risks further economic destabilisation.
