In the third instalment of Society Talks, the conversation centred on the impact that COVID-19 has had on the small-scale cross border trade. Informal cross border trade (ICBT) – trade activities which are unrecorded in official trade statistics – is pervasive in Africa. Mr Olusegun Awolowo, NEPC Chief Executive Officer, said this on Tuesday in Lagos at a Stakeholders Sensitization Programme on the ICBT activities along the Seme and Okerete trade corridors. Therefore, informal cross border trade is an important component of a country’s informal sector as it has spill-over effects on trading countries, in particular the border towns. Uganda enjoyed a booming cross border informal trade, 80% of which was being done by women as their sole source of income. Informal cross-border trade is an important component of a country’s informal sector as it has spill-over effects on trading countries, in particular the border towns. Uganda enjoyed a booming cross-border informal trade, 80% of which was being done by women as their sole source of income. • The map below shows sites and towns along Uganda borders, those monitored are underlined. Typically, it is proximity trade involving the move of produce between markets close to the border. The women were mainly middle-aged single parents who engaged in ICBT for survival. Despite its obvious presence at every border post throughout the SADC region, ICBT remains largely invisible to policy-makers. Title: Informal Cross Border Trade In East Africa 1 Informal Cross Border Trade In East Africa . FEWS NET Southern Africa has prepared this report based on data collected by a network of cross border monitors based at selected border points in Malawi, Mozambique, Zimbabwe and Zambia. MTID Project Note . While in developed countries, the phenomenon is confined and touches only a few products, e.g., tobacco and wine, it is dominating in most developing countries and concerns a variety of goods. Despite being a source of income to about 43 percent of Africa’s population, informal cross border trade (ICBT) is generally regarded as illegal commercialization of cross border activities. Moreover, informal cross border trade is also crucial to understand wh,y the level of intra-Africa trade is low by world standards. A significant proportion of cross-EAC border trade is in the form of ICBT. !e sheer numbers of traders at the country’s major border crossings (especially at Lebombo with South Africa) is evidence of their contribution to the local as well as regional economy. Regarding the funding sources of informal cross border traders in general, although the credit was cited as a major constraint in the acquisition and storage of products sold, 98% of retailers surveyed were unable to obtain a finance support from formal institutions and had to rely on their own savings (27%), informal lenders (27%), friends and relatives (24%). Map of Uganda showing Cross-Border Monitoring Sites (underlined) THE MAJOR BORDER STATIONS. term "informal cross‐border trade" is used to refer to imports and exports of legitimately produced goods and services (i.e., legal goods and services), which directly or indirectly escape from the regulatory framework for taxation and other procedures set by the government, and often go unrecorded or incorrectly recorded into official national statistics of the trading countries. Awolowo, represented by Andy Ambikputen, […] This Trade Brief presents a discussion of the importance of Informal Cross-Border Trading (ICBT) for socio-economic development in the east and southern Africa region. Although levels of intra-regional trade in SSA are very low, informal cross-border trade (ICBT) is thriving almost everywhere in Africa. Informal cross-border trade. Informal cross-border trade in Africa . Economic theory suggests that the presence of informal trade depends on the relative costs of trading informally and formally (Golub, 2015; Eberhard-Ruiz & Moradi, 2018). informal cross border trade takes place around these stations by the technical team. Informal Cross Border Trade in the East African Community, the Democratic Republic of Congo, and South Sudan This research paper was supported by TradeMark East Africa by Niti Bhan emerging futures lab www.nitibhan.com. Informal cross-border trade is a notoriously difficult space to map. Written by. The Nigerian Exports Promotion Council (NEPC) has stressed the need to formalise the Informal Cross Border Trade (ICBT) in the country. A baseline survey conducted in 2003 revealed that informal cross border trade was a significant component of merchandise trade between Uganda and her neighbouring countries. Informal Cross Border Trade (ICBT) plays an important role in developing countries and act as accelerator of economic development, regional development of the borderland areas. Uganda conducts monthly Informal Cross Border Trade (ICBT) Surveys to collect information on unrecorded trade transactions in goods with its neighbours.The baseline study carried out in 2003 revealed that informal trade was significant and involved both agricultural and industrial products. Currently, the informal cross border trade monitor system includes 18 borders. It not only acts as an accelerator of economic development, but also regional development. Although accurate data on the volume of ICBT trade is limited, estimates range between 50-60% of total intra-Africa trade. The informal cross-border trade is widespread worldwide, and continues to thrive as a global phenomenon touching a variety of countries, including the most developed ones. The exact number of participants and economic importance of this trade is unknown because no official statistics are collected. Informal Cross-Border Trade. Handle: RePEc:fpr:ifpric:9780896293908_05 In addition, women trade predominately in lower value, low profit products. Background The high value of the informal activities in the economic system has started to get more and more attention by a growing number of scholars in recent times. "Informal cross-border trade in Africa," IFPRI book chapters, in: Africa agriculture trade monitor 2020, chapter 5, pages 119-148, International Food Policy Research Institute (IFPRI). 1 These are personal views … However, the inevitable closure of borders because of the dangerous COVID-19 is threatening to drive the women out of business, writes Faridah Kulabako. Kathryn Pace, Antoine Bouët, Joseph W. Glauber . Issues for EAC Regional Integration and Economic Growth ; By Victor Ogalo ; CUTS ARC, Nairobi ; voo_at_cuts.org ; BIEAC-II Regional Workshop, May 27-28, 2010 ; 2 Informal Cross- Border Trade . 4) Background. 1 Chapter 1 Introduction 1.1. The Informal Cross Border Trade of Agricultural and Horticultural Commodities between Cameroon an its EMCCA1 Neighbours by Robert Nkendah Lecturer-Researcher The University of Douala – FSEGA P.O. Country Experience: Uganda: Informal Cross Border Trade Surveys (ch. Southern African Trust. The informal cross border traders noted that it had become difficult to get credit lines. Informal Cross Border Trade in Southern Africa and how the Sector will Recover. However, Sauti’s mobile technology approaches allow us to dynamically implement survey mapping with unprecedented reach and scale. Estimates of intra-Africa trade generally do not include informal cross-border trade (ICBT). narcotics) or in the manner of trading (evasion of customs duties and regulations). Informal cross- border trade and smuggling in Africa 193 smuggled through in smaller quantities, as described above, or cross the border with the connivance of customs officials. Both types of illegal trade occur in Africa. 2019. West African Association for Cross-Border Trade, in Agro-forestry-pastoral and Fisheries Products – WACTAF (French: Association Ouest Africaine du Commerce Transfrontalier des produits Alimentaires, Agro-sylvo-pastoraux et Halieutiques as AOCTAH). The informality refers to the status of the trader (unregistered), not necessarily to the trade itself (captured or unrecorded by the official customs system). Women Informal Cross Border Traders largely use un-gazetted border crossing routes despite the integration of the East African Countries and coming of the Customs Union and Common Market Protocols. While the share of in-trade reached 40% in North America and 63% in Western Europe since mid-2000s, it was estimated at only 10 to 12% in Africa (UNECA, 2015). Communications. Box. On the empirical side, informal trade is inherently di cult to measure. Pages: 6. Data points have been selected to demonstrate key attributes about the average cross-border informal trader with the objective of improving the economic conditions in region. Studies that were conducted indicate that 74% of informal cross-border trade is conducted by women and for the majority it is their only source of income. There was need to identify how the provisions in the Customs Union and Common Market Protocols can be exploited in order to increase women’s trade volume, reduce transaction costs and … Informal cross-border trading is an essential part of Maputo’s informal economy. The Informal Cross Border Trade Survey Introduction and Background Uganda started the Informal Cross border Trade Survey (ICBT) as a means of bridging the gap identified in the external trade statistics. Informal cross-border trade, which is trade that occurs outside of formal, legal mechanisms, plays an important role in the economies of East Africa. ICBT can have positive macroeconomic and social ramifications such as food security and income creation particularly for rural populations who would otherwise suffer from social exclusion. Informal trade can involve two types of illegality, in the goods themselves (e.g. ICBT is rarely illegal. Some of the factors spurring informal trade are expensive document […] Informal cross-border trade affects the symbolic power of the State, particularly where the State takes one of its more concrete forms, as “the borders.” Indeed, at borders, where commodities ﬂows are regulated, informal trade forces governments to balance or choose between rule avoidance with economic contribution, as well as social relations. Observation Time Frame for the survey • Border monitoring commenced in the first week of October 2003. Informal Cross-Border Trade, Participation, Income, Indonesia, Multivariate Analysis. Informal cross-border trade (ICBT) is a significant feature of regional trade and international mobility in Southern Africa. Open Access | CC-BY-4.0. The cross border monitors record data on a regular basis and transmit it to a central location for collation and analysis. Namibia Statistics Agency - Informal Cross Border Trade - ovember 2014 7 2. Sixteen women informal cross-border traders were interviewed in depth while two cross-border bus drivers and two customs officials provided key information, which was categorized and discussed along emerging themes. Informal cross-border trade is trade between neighbouring countries conducted by vulnerable, small, unregistered traders. Studies across the continent indicate that ICBT is substantial and that it includes both agricultural as well as industrial goods.