Publication: Lake Chad Regional Economic Memorandum: Technical Paper 7. Trade Patterns and Trade Networks in the Lake Chad Region
Date
2021-11-09
ISSN
Published
2021-11-09
Author(s)
Walkenhorst, Peter
Abstract
The Lake Chad Region (LCR) is an
economically interdependent area that encompasses parts of
Cameroon (Extrême-Nord), Chad (Chari Baguirmi, Hadjer Lamis,
Kenam, and Lac), Niger (Diffa and Zinder), and Nigeria
(Adamawa, Borno, and Yobe). The region is characterized by
strong historical, ethnic, cultural, and political ties, as
well as commercial linkages that extend across its porous
borders. Indeed, many if not most of the cross-border
exchanges are not recorded in official import and export
statistics. Informal trade is widespread throughout Africa
(Bouet, Pace, and Glauber 2018; World Bank 2020),
particularly if formal state institutions are under stress.
Traders try to avoid import or export declarations as well
as border taxes, and customs and other border agencies often
tolerate the cross-border trade of small consignments
without the need to comply with formal procedures. This does
not necessarily mean that these trade flows go untaxed,
though. Border officials might levy fees that do not have a
legal basis, and state or local authorities often ask for
informal payments at roadblocks or in marketplaces. The LCR
is far from a seaport and, hence, heavily landlocked. This
condition means that the cost of connecting to international
markets is high. As a result, consumers in the LCR pay a
high price for imports from global markets, whereas
producers in the region get a low price for their exports to
international clients. The region faces other challenges
that stress its production base and depress economic
development. These challenges include erratic weather
patterns with frequent periods of drought, as well as
environmental degradation of the lake. The most important
threat to the well-being and the livelihood of the
population in recent years has been the deteriorating
security situation, though.
Link to Data Set
Citation
“Walkenhorst, Peter. 2021. Lake Chad Regional Economic Memorandum: Technical Paper 7. Trade Patterns and Trade Networks in the Lake Chad Region. © World Bank, Washington, DC. http://hdl.handle.net/10986/36578 License: CC BY 3.0 IGO.”