Publication:
Monitoring Small-Scale Cross Border Trade in Africa: Issues, Approaches, and Lessons

Loading...
Thumbnail Image
Files in English
English PDF (7.94 MB)
1,189 downloads
English Text (179.88 KB)
222 downloads
Date
2020-09
ISSN
Published
2020-09
Author(s)
Editor(s)
Abstract
This report synthesizes the work carried out as part of a World Bank ASA (Advisory Services and Analytics) activity to identify better systems and practical strategies that countries can use for improved monitoring of small-scale cross border trade (SSCBT). Large amounts of goods are known to be traded through cross border channels in Africa, yet SSCBT is poorly counted leading to a misrepresentation of the true state of regional integration and possible misalignment of trade and development policies. The study assesses the strengths and limitations of existing SSCBT data systems in East Africa to understand the feasibility and cost effectiveness of different data collection methods. It also looks at conditions along trade corridors in other regions of Africa where SSCBT data are only starting to be monitored to identify common bottlenecks and potential solutions for improved trade data collection in different environments. The analysis draws on fieldwork carried out during July and August 2019, as well as subsequent consultations with local counterparts, including with respect to the impact of the COVID-19 pandemic. Through this work, the study aims to inform policy in countries where SSCBT is important and where the establishment of monitoring systems will be relevant and desirable. The project also contributes to discussions and negotiations on regional integration by raising the profile of SSCBT and drawing attention to the importance of addressing barriers that limit this trade. In addition to this report, findings of the ASA are also being shared with a diverse audience of policymakers, economic analysts, and civil society representatives through short policy notes, working papers, and dissemination events.
Link to Data Set
Citation
World Bank. 2020. Monitoring Small-Scale Cross Border Trade in Africa: Issues, Approaches, and Lessons. © World Bank. http://hdl.handle.net/10986/34884 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Eight Emerging Effects of the COVID-19 Pandemic on Small-Scale Cross-Border Trade in the Great Lakes Region
    (World Bank, Washington, DC, 2021-02-17) Mvunga, Nyembezi; Kunaka, Charles
    Small-scale cross-border trade (SSCBT) is a defining feature of the economies of the borderlands of the Great Lakes Region (GLR). It is an important source of income and a necessary channel to access goods and services that have enabled vulnerable households to increase their resilience against outside shocks and escape extreme poverty. SSCBT enhances food security and contributes to improved stability in this conflict-afflicted region. However, the Coronavirus (COVID-19) pandemic, which has resulted in the restricted movement of people, goods, and services across borders in the GLR since March 2020, has greatly affected informal cross-border trade and traders. Its persistence has also hindered the progress that countries in this region have made toward improving the trading environment. Evidence from the World Bank’s Great Lakes Trade Facilitation Project (GLTFP), which has been undergoing implementation in the Democratic Republic of Congo (DRC), Rwanda, Uganda, and the Common Market for Eastern and Southern Africa (COMESA) since 2015, highlights to a greater extent how the pandemic has erased some of the progress that countries in the region have made toward improving the livelihoods of their citizens and the trading environment. The objective of this note is to provide evidence of some of the emerging effects of the Coronavirus (COVID-19) pandemic on SSCBT in the GLR. Because the effects of the pandemic are still evolving, this note summarizes emerging patterns that can inform discussions on policy response and the design of measures to lessen the effect of the pandemic and help protect the future of small-scale trade in the region. This note presents the emerging effects of the pandemic in the region as evidenced by the GLTFP, and is followed by recommendations on focus areas for policy makers.
  • Publication
    Facilitating Cross-Border Trade between the DRC and Neighbors in the Great Lakes Region of Africa : Improving Conditions for Poor Traders
    (World Bank, 2011-06-01) World Bank
    This report looks at the current situation and opportunities for cross-border trade between Democratic Republic of Congo (DRC) and neighbors with a focus on agricultural products. It recognizes that much of current trade across these borders is informal and carried by individual traders, most of whom are poor women. The report shows that it is very important that informality not be equated with illegality. The large numbers of traders that cross the border every day do so through official border crossings. The aim of the report is to provide information on the current state and the potential for cross border trade between the DRC and Burundi, Rwanda and Uganda, to document the conditions and problems that traders face in crossing the borders and provide suggestions to policy makers on the priorities for trade facilitating measures at the border. Exploiting the potential for cross-border trade will be an important element of growth and poverty reduction in the region and a key mechanism for enhancing stability. Comparing prices for food products in a range of markets in the three countries, the report underlines the strong role that cross-border trade could play in reducing differences in price levels and price volatility of agricultural products. The report proceeds by describing the current economic situation in the Great Lakes region and then provides a brief summary of a detailed analysis of relative prices of a number of basic food products in markets in Burundi, DRC and Rwanda and what this implies for the width of the borders in the region. The next section then summarizes the results from the survey of cross-border traders which is followed by a set of recommendations. The final section concludes and describes a number of steps that are being taken to address the constraints identified in this report and discusses ways in which these may be built upon.
  • Publication
    Gender Dimensions of Small-Scale Cross-Border Trade in Cambodia and the Lao People’s Democratic Republic
    (World Bank, Washington, DC, 2016-10) World Bank Group
    The findings presented here, from a World Bank study led by the Trade and Competitiveness Practice of the World Bank, fill the gap in our knowledge about the patterns of small-scale cross-border trade in Cambodia and Lao PDR and those engaged in it. This knowledge will help inform future investments in trade integration and identify how interventions might be adjusted to ensure that vulnerable border users are able to realize the benefits of trade modernization. Given the lack of data on small-scale cross-border trade and traders, an innovative mix of survey strategies was implemented in Poipet and Bavet, Cambodia (on the borders with Thailand and Vietnam, respectively), and in Vangtao, Lao PDR (bordering Thailand). The three border crossings were chosen based on field observations and qualitative interviews in the vicinity of more than ten different border checkpoints. Selection criteria included trade volume, diversity and representativeness of trade patterns, and the active involvement of Lao and Cambodian citizens. Cambodia and Lao PDR were selected because they are the poorest of the four countries. Qualitative data from field observations, stakeholder interviews, and focus group discussions were combined with quantitative measures (sampling frames listing small-scale cross-border trade transactions and in-depth interviews) to provide a clear and accurate picture of small-scale cross-border trade and its practitioners.
  • Publication
    Borderless Bazaars and Regional Integration in Central Asia : Emerging Patterns of Trade and Cross-Border Cooperation
    (Washington, DC: World Bank, 2012-05-25) Kaminski, Bartlomiej; Mitra, Saumya
    Local populations' economic opportunities can be enhanced through special arrangements governing movement of people and goods in neighboring areas. For instance, in the Tajikistan-Uzbekistan border-crossing points (BCPs), preferential treatment accorded to residents in contiguous regions varies from one BCP to another, even within one borderline, restricting the distance allowed for travel into the territory of another country to the closest large city or marketplace. When governments impose restrictions on the movements of individuals, vehicles, or goods or close BCPs or bazaars, they may do so on public policy grounds. Security is often cited as a factor for imposing controls, as is prevention of contraband trade. Such government imposed obstacles are a blunt and expensive instrument to attain such public policy aims. The income and welfare costs levied on poor communities of such public policies may be disproportionate to achieve stated public policy goals. Instead, BCPs and bazaars could be opened but made subject to strict and effective policing, ideally using risk-based criteria; similarly, risk-based surveillance or vehicle searches could take the place of an outright ban. Moreover, a government may find that the security benefits of stronger community ties across borders may be considerable; after all, in conditions of growing trade that obviously contributes to the prosperity of a border community, all parties have a stake in suppressing criminal behavior and public disorder and in promoting orderly conditions that minimize the likelihood of the need for security services to intervene. In summary, support for border trade is a win-win strategy for any pair of countries. Government-imposed restrictions may constrict trade and raise its cost, but they do not necessarily eliminate local trade, especially among countries with established cultural, ethnic, and economic ties, which is the case of the former Soviet republics in Central Asia. Such restrictions raise transaction costs and incentivize smuggling. They greatly reduce the beneficial impact on income and employment that can arise from border trade, leading to large welfare losses for communities. The most significant effect of growth in border trade is likely to be poverty reduction in communities in contiguous regions.
  • Publication
    Estimating Trade Flows, Describing Trade Relationships, and Identifying Barriers to Cross-Border Trade Between Cameroon and Nigeria
    (Washington, DC, 2013-05-07) World Bank
    Cameroon and Nigeria share a common border of nearly 1,700km and both countries have strong historical and cultural ties. However, the partnership between the two countries has had its difficult periods, most recently when the relationship turned hostile over the disputed Bakassi Peninsula, and economic linkages between the economies remain limited. Expanding trade between the two countries could play a critical role in accelerating economic development and regional integration by opening up new markets for producers, and allowing them to benefit from economies of scale. This will require reducing barriers to cross-border trade, allowing increased trade flows to reach the larger market, and permitting private sector producers to increase the scale of their activities. Removing barriers to trade between the two neighbors is likely to benefit particularly relatively remote areas of both countries. The study finds that regulatory and security barriers at the border and along the road remain key impediments to trade. The remainder of this report proceeds as follows. Section one describes drivers for cross border trade such as historical relations, economic factors, and the policy environment. The next section describes the reality of trade flows by describing existing trade corridors and estimating current trade flows. Section three describes how goods are actually traded across borders between the two countries, and how different actors are involved. Section four describes the barriers to trade, and identifies which barriers are most important. Section five describes the potential for increasing trade. Section six summarizes the findings and presents prioritized recommendations for policy reform.

Users also downloaded

Showing related downloaded files

  • Publication
    Media and Messages for Nutrition and Health
    (World Bank, Washington, DC, 2020-06) Calleja, Ramon V., Jr.; Mbuya, Nkosinathi V.N.; Morimoto, Tomo; Thitsy, Sophavanh
    The Lao People’s Democratic Republic (Lao PDR) has experienced rapid and significant economic growth over the past decade. However, poor nutritional outcomes remain a concern. Rates of childhood undernutrition are particularly high in remote, rural, and upland areas. Media have the potential to play an important role in shaping health and nutrition–related behaviors and practices as well as in promoting sociocultural and economic development that might contribute to improved nutritional outcomes. This report presents the results of a media audit (MA) that was conducted to inform the development and production of mass media advocacy and communication strategies and materials with a focus on maternal and child health and nutrition that would reach the most people from the poorest communities in northern Lao PDR. Making more people aware of useful information, essential services and products and influencing them to use these effectively is the ultimate goal of mass media campaigns, and the MA measures the potential effectiveness of media efforts to reach this goal. The effectiveness of communication channels to deliver health and nutrition messages to target beneficiaries to ensure maximum reach and uptake can be viewed in terms of preferences, satisfaction, and trust. Overall, the four most accessed media channels for receiving information among communities in the study areas were village announcements, mobile phones, television, and out-of-home (OOH) media. Of the accessed media channels, the top three most preferred channels were village announcements (40 percent), television (26 percent), and mobile phones (19 percent). In terms of trust, village announcements were the most trusted source of information (64 percent), followed by mobile phones (14 percent) and television (11 percent). Hence of all the media channels, village announcements are the most preferred, have the most satisfied users, and are the most trusted source of information in study communities from four provinces in Lao PDR with some of the highest burden of childhood undernutrition.
  • Publication
    Supporting Youth at Risk
    (World Bank, Washington, DC, 2008) Cohan, Lorena M.; Cunningham, Wendy; Naudeau, Sophie; McGinnis, Linda
    The World Bank has produced this policy Toolkit in response to a growing demand from our government clients and partners for advice on how to create and implement effective policies for at-risk youth. The author has highlighted 22 policies (six core policies, nine promising policies, and seven general policies) that have been effective in addressing the following five key risk areas for young people around the world: (i) youth unemployment, underemployment, and lack of formal sector employment; (ii) early school leaving; (iii) risky sexual behavior leading to early childbearing and HIV/AIDS; (iv) crime and violence; and (v) substance abuse. The objective of this Toolkit is to serve as a practical guide for policy makers in middle-income countries as well as professionals working within the area of youth development on how to develop and implement an effective policy portfolio to foster healthy and positive youth development.
  • Publication
    Europe and Central Asia Economic Update, Fall 2024: Better Education for Stronger Growth
    (Washington, DC: World Bank, 2024-10-17) Izvorski, Ivailo; Kasyanenko, Sergiy; Lokshin, Michael M.; Torre, Iván
    Economic growth in Europe and Central Asia (ECA) is likely to moderate from 3.5 percent in 2023 to 3.3 percent this year. This is significantly weaker than the 4.1 percent average growth in 2000-19. Growth this year is driven by expansionary fiscal policies and strong private consumption. External demand is less favorable because of weak economic expansion in major trading partners, like the European Union. Growth is likely to slow further in 2025, mostly because of the easing of expansion in the Russian Federation and Turkiye. This Europe and Central Asia Economic Update calls for a major overhaul of education systems across the region, particularly higher education, to unleash the talent needed to reinvigorate growth and boost convergence with high-income countries. Universities in the region suffer from poor management, outdated curricula, and inadequate funding and infrastructure. A mismatch between graduates' skills and the skills employers are seeking leads to wasted potential and contributes to the region's brain drain. Reversing the decline in the quality of education will require prioritizing improvements in teacher training, updated curricula, and investment in educational infrastructure. In higher education, reforms are needed to consolidate university systems, integrate them with research centers, and provide reskilling opportunities for adult workers.
  • Publication
    Remarks at the United Nations Biodiversity Conference
    (World Bank, Washington, DC, 2021-10-12) Malpass, David
    World Bank Group President David Malpass discussed biodiversity and climate change being closely interlinked, with terrestrial and marine ecosystems serving as critically important carbon sinks. At the same time climate change acts as a direct driver of biodiversity and ecosystem services loss. The World Bank has financed biodiversity conservation around the world, including over 116 million hectares of Marine and Coastal Protected Areas, 10 million hectares of Terrestrial Protected Areas, and over 300 protected habitats, biological buffer zones and reserves. The COVID pandemic, biodiversity loss, climate change are all reminders of how connected we are. The recovery from this pandemic is an opportunity to put in place more effective policies, institutions, and resources to address biodiversity loss.
  • Publication
    Economic Recovery
    (World Bank, Washington, DC, 2021-04-06) Malpass, David; Georgieva, Kristalina; Yellen, Janet
    World Bank Group President David Malpass spoke about the world facing major challenges, including COVID, climate change, rising poverty and inequality and growing fragility and violence in many countries. He highlighted vaccines, working closely with Gavi, WHO, and UNICEF, the World Bank has conducted over one hundred capacity assessments, many even more before vaccines were available. The World Bank Group worked to achieve a debt service suspension initiative and increased transparency in debt contracts at developing countries. The World Bank Group is finalizing a new climate change action plan, which includes a big step up in financing, building on their record climate financing over the past two years. He noted big challenges to bring all together to achieve GRID: green, resilient, and inclusive development. Janet Yellen, U.S. Secretary of the Treasury, mentioned focusing on vulnerable people during the pandemic. Kristalina Georgieva, Managing Director of the International Monetary Fund, focused on giving everyone a fair shot during a sustainable recovery. All three commented on the importance of tackling climate change.