informal cross border trade in africa
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. narcotics) or in the manner of trading (evasion of customs duties and regulations). A parallel tralac blog will explain the economic rationale behind this trade, based on the existence of optimal market sheds and ‘time to market’ considerations. ICTSD Bridges Africa,  Brenton, E. and C. Soprano. This project aims to tackle some of the gender-specific obstacles faced by informal cross-border traders in Malawi, the United Republic of Tanzania and Zambia. Among the items that are re-exported are contraband items such as counterfeit goods, fuels and pharmaceuticals. In West and Central Africa, informal cross-border trade among women represents more than 60% and generates about 40 to 60% of the Gross Domestic Product (GDP) of the countries concerned. The table lists some of the measures adopted by a selection of SSA countries at time of writing (5 April 2020), according to the Al-Jazeera news agency. In Africa, it is estimated to represent 43 percent of official gross domestic product (GDP), thus being almost equivalent to the formal sector. Typically, it is proximity trade involving the move of produce between markets close to the border. Building capacity to help Africa trade better, Informal Cross Border Trade in Africa in a Time of Pandemic. CBT is also important not only for poverty-reduction but also from a gender perspective. Your username will be emailed to the email address on file. 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. Women constitute the largest proportion in this sector practicing small scale business transactions in a range of products. The volume of ICBT flows vary by country. Small-Scale Cross-Border Trade in Africa Why It Matters and How It Should Be Supported. • Under the ICBT, industrial and agricultural items that cross the border in both large and small quantities are not recorded. Informal Cross Border Trade (ICBT) is an economic activity that engages a One study estimated that ICBT amounted to 30-40% of total intra-regional trade in the SADC region and 40% in the COMESA region. Informal cross-border trade is very important to Africa in general and the Common Market for Eastern and Southern Africa (COMESA) in particular. Be constructive and on-topic. Informal trade is a common feature of African landscapes. Poverty and Climate in Africa South of the Sahara: an Empirical Analysis. Washington, DC: International Food Policy Research Institute (IFPRI). Through new analyses and capacity-building activities, the intervention tackles two issue areas: UNCTAD travelled to half a dozen frontier communities in Malawi, Zambia and Tanzania to find out more about women living on the borderline. Informal trade can involve two types of illegality, in the goods themselves (e.g. Comments containing personal attacks, insults or threats will be deleted. Informal trade can involve two types of illegality, in the goods themselves (e.g. As Regional integration continues to grow in Africa, trade is one of the factors that contribute to regional integration. It contributes income, provides jobs and empowers women in some of the most fragile and impoverished communities on the continent. Data for Rwanda estimates that ICBT to its four neighbours (Democratic Republic of Congo (DRC), Kenya, Tanzania and Burundi) is about 59% of total exports to these countries, while informal imports total to a much lower figure – just 4% of the total. 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