Informal Cross-border Traders Research Articles

Cattle Smuggling Across the India-Bangladesh Borderlands: A Challenge for Border Management?

ABSTRACT This study offers a comprehensive assessment of the cattle smuggling issue along the borders of India and Bangladesh. This critical subject has received little scholarly attention despite having substantial implications for border security, the regional economy, and the sustenance of local populations. This study investigates the complex socioeconomic and political factors that drive illicit trade in borderland areas, employing a thematic analysis of focus group discussions and key informant interviews with residents. Data were collected from 46 borderland residents, including local villagers and informal cross-border traders, from Panchagarh, Kurigram, and Satkhira districts. The findings indicate the presence of four primary themes, namely “Economic Imperatives of Cattle Smuggling,” “High Demand for Indian Cattle in Bangladesh,” “Lack of Proper Border Management,” and “Risks Associated with Cattle Smuggling.” These themes highlight the economic imperatives, market-oriented dynamics, and governance complexities of cattle smuggling in the India-Bangladesh borderlands.

The African Continental Free Trade Area and informal cross border trade: implications on socio-economic development in Africa

ABSTRACTThe setting up by the African Union of the African Continental Free Trade Area (AfCFTA), which should govern matters relating to, inter alia, trade in goods and services, investment, trade facilitation, intellectual property rights, and competition policy is a step in the right direction. However, this paper argues that the limited inclusion of informal economy actors such as informal cross border traders (ICBTs) appears to undermine the potential of the AfCFTA as the architecture for inclusive socio-economic development in Africa. The paper advances the need for African countries to craft policies which are sensitive to and respond to the circumstances of ordinary people on the ground and not a wholesale application of policies such as neoclassical integration theory, the outcome of which deserts ordinary people. Such policies must be transcendental to the extent of being informed by views from the ground, which does not appear to be the case with the AfCFTA on the score of ICBTs.

Navigating livelihoods in the midst of COVID-19: experiences of women in informal cross-border trading in Accra, Ghana

Studies have indicated that the COVID-19 pandemic has had an impact on businesses, and that female-led businesses have been more negatively affected than male-led ones because of their fragility, unpredictability, and lack of state support. One such group that has suffered because of the official closing of borders during the pandemic is informal cross-border traders. Using the empowerment framework and semi-structured interview guide, this study highlights how the COVID-19 pandemic impacted the livelihoods of Ghanaian women in informal cross-border trading. The findings show that the pandemic affected participants' livelihoods as well as their sociocultural and psychological lives creating a sense of dis-empowerment. Women in informal cross-border trading had however, used a variety of strategies to get themselves through those difficult times, including switching suppliers, using illegal routes to get their products into the country, and utilizing various social networks created to facilitate their businesses. The authors recommend that women in informal cross-border trading are provided with financial and institutional support as well as bettering their access to communication tools to streamline their commercial dealings.

Strategies for Survival in an Informal Economy: Illegalities of Zimbabwean Informal Cross Border Traders at Ports of Entries in Southern Africa.

Informal Cross Border Trade (ICBT) is mostly conducted by poor, vulnerable, small and unregistered traders who end up practising illegal activities in order to earn a livelihood and for the business to thrive. They often do not have official export/import license or permit within a defined threshold and this creates many impediments at international borders which oblige them to engage in illegal and corrupt behaviours. There is little comprehensive research about the illegalities of informal cross border traders and whether these illegalities improve the operation of ICBT or it ruins the business. This research examines the illegalities practised by informal cross border traders (ICBTs) in Zimbabwe to understand their nature, geographical spread, benefits and risks. A qualitative approach was used whereby in-depth interviews were undertaken with 30 informal cross border traders using snowball sampling. Traders who imported from Mozambique, Botswana, South Africa and Zambia were selected to participate in the study in order to document various illegalities performed at diverse national borders. Results revealed that traders engage in many illegal activities both at the national borders and in transit when confronted by Zimbabwe Revenue Authority officials and other security state organs. It was revealed that many traders use illegal ports of entry when importing their goods and that they rarely declare their goods at official border posts. The research recommends the government to proffer conditions that are manageable for the small scale traders to be registered so that illegal activities and corruption in the country can be lessened and also for the government to obtain meaningful tax from this sector.

The vacuity of informal cross-border trade facilitation strategies in the SADC region

In the Southern African Development Community (SADC) region, there is the discourse that trade facilitation programmes have opened borders for actors like informal cross-border traders. Examples used in this narrative include the African Continental Free Trade Area. This article takes a different view and asserts that these state-driven initiatives were limited because regionalism as SADC institutional project was not in sync with the everyday regionalization processes. Such processes demonstrate the fluidity and multidimensionality of regional integration, which transcend state-centric paradigms and this invokes an alternative explanatory framework and understanding of the bottom-up process of regional integration in an African setting.

Dynamics between Regional Integration and Informal Cross Border Trade and Its Applicability: The Case of Cameroon and Equatorial Guinea

Collective self-reliance, inward-looking regionalism, and delinking from the dominant relationships that prevailed in the international economic system in the form of regional economic integration and cooperation were the solution identified by the Pan-African leaders as a potential strategy for restructuring the fragmented African region into a more coherent and viable economic space. This article interrogates the applicability and understanding of Regional Integration within the ECCAS Region while determining the influence Informal Cross Border Trade has had on economic integration in this sub region. The study uses economic integration theories to analyze the implementation of regional economic integration and its effectiveness. The article applies a qualitative research method with a cross sectional design to study a multilevel issue involved in regional integration. It aimed to explain and predict phenomena based on empirical data obtained through interviews using close structured and unstructured interview guide. The study revealed that despite efforts to institutionalize regional integration in the ECCAS region, structural challenges remain a significant impediment to intra-regional trade. Informal cross-border traders consolidate what has come to be regarded as the “invisible” integration of Africa’s economies through their involvement in a range of goods and services, resulting in transnational networks, culture and kinship. These can only be effective if African countries adopt a self-reliant and inward-looking economic integration strategy.

Impact of Informal Cross Border Trade on Livelihoods: A Case of Rubavu District

Informal Cross-Border Trade (ICBT) constitutes a major form of informal activity in most developing countries and plays a significant role in changing the livelihood of people and alleviating poverty. Nevertheless, the sector has not been accommodated within the city and national policies, it provides employment opportunities as a means of income generation for the urban poor, especially for those who migrate from the rural areas. It also provides to consumers convenient and accessible retail options and forms a vital part of the social and economic life of a city. The study entitled “Impact of Informal Cross Border Trade on Livelihoods; a case of Rubavu District” was guided the following specific objectives: to analyze the informal cross-border trade at Rubavu border between Rwanda and the Democratic Republic of Congo; to assess the prominence of livelihoods of informal traders in Rubavu District; to find out the relationship between informal cross border trade and the level of livelihood of informal traders in Rubavu District. The study used descriptive and correlational research design. The sample size of the study was 188 informal traders. A questionnaire was used to collect data and finally the study used descriptive statistics and inferential statistics as method of data analysis. The findings revealed that 71.8% of respondents strongly agreed that rules and regulations on border play a major role in determining the growth of ICBT. 72.3% of respondents strongly agreed that there is high cost of registering small business. 62.2% of respondents strongly agreed that tax laws of Rwanda are well defined. About the trade of commodities, 52.7% of respondents strongly agreed that they buy and sell agriculture products from Rwanda to DRC. About market and marketing, 84% of respondents strongly agreed that the informal cross border product marketing is the way of refusing the Government taxes. 87.2% of respondents strongly agreed that their source of income saving increased over the last three years (after joining ICBT). The findings indicated that there is high positive significant linear relationship between taxation policy and livelihood improvement in Rubavu District at r = 0.723 ** ; p-value =0.000 < 0.01. The findings indicated that there is moderate positive significant linear relationship between trade commodities and livelihood improvement in Rubavu District at r = 0.635 ** ; p-value =0.001 < 0.01. Based on the findings, the study concluded that there is positive effect on ICBT towards livelihoods of informal cross border traders in Rubavu District where the variation in livelihoods of its beneficiaries was related to changes in policy and legal framework, taxation policy, trade commodities and marketing strategies. The research recommended that Rwandan government should educate the business community about different tax rates, mode of payment because some informal traders do not know those rates and the mode of assessment. Key concepts: Informal cross border trade, livelihood, improvement. DOI: 10.7176/EJBM/14-22-08 Publication date: November 30 th 2022

COVID-19, Dissensus and de facto Transformation at the South Africa–Zimbabwe Border at Beitbridge

ABSTRACT This paper explores the coronavirus-induced closure of the South Africa–Zimbabwe border at Beitbridge and its effects on informal cross-border trade activities and migration. It is based on a qualitative study involving in-depth interviews with informal cross-border traders (ICBTs), migrant workers, local informal transporters, informal cross-border transporters, bus drivers, and individual couriers (hired to transport goods across illegal border cross border points). The findings suggest that the border closure had a limited impact on ICBT and migration behavior as it led to a transformation and/or reconfiguration of how people contested the Beitbridge border. This suggests that border closures are an ineffective strategy to mitigate the effects of disasters/pandemics, such as coronavirus.

Why Do Informal Cross Border Traders (ICBTs) Operate Informally?

Why Do Informal Cross Border Traders (ICBTs) Operate Informally?

A catastrophic threat to the already vulnerable towards 2030: Impact of COVID-19 lockdown on livelihood outcome of informal cross border traders in Gweru, Zimbabwe.

Informal cross-border trade (ICBT) is one significant part of intra-Sub-Saharan African (SSA) trade. This economic activity goes a long way in achieving the Sustainable Development Goals, by providing employment in poor communities, and thus helps in poverty reduction by providing a significant contribution of income into households. For these reasons any disturbance to ICBT in SSA is a serious threat, since it affects the most vulnerable groups of societies. This research examines the impact of COVID-19 on the livelihood outcome of informal cross border traders (ICBTs) in Gweru, Zimbabwe using the case of Global Village Flea Market. The case study design was used, employing qualitative data collection techniques. This research design was chosen as it enabled generation of in-depth understanding of what actually transpired on the ground during the lockdown period. The main sources of data were in-depth interviews with the ICBTs and owner of the flea market. Thirty three ICBTs were selected at the flea market using convenience sampling technique. Results revealed that COVID-19 pandemic had an impact on ICBTs livelihood outcome by causing the global economic retreat of nations, shutting down of borders, shutting down business operations and social contact. There were challenges in acquiring income during this COVID-19 lockdown period since the traders were not allowed to go to work and this presented difficulties in the quest to achieve SDGs 1 and 2 by 2030. Their situation was further worsened by rise in prices of basic commodities which occurred during the lockdown when they were not operating and also by lack of assistance from the government. Sixty one percent (61%) of the respondents who had few savings from the business, that were meant to purchase new stock, had to use these to buy food and pay rentals during the lockdown period. This meant that they no longer had capital to purchase new stock when business resumed. The study recommends the government to provide assistance to ICBTs during the occurrence of such pandemics or situations that result in lockdown of nations.

Impact of Virtual Cash Economy on Livelihood Outcomes of Informal Cross Border Traders in Gweru, Zimbabwe

Impact of Virtual Cash Economy on Livelihood Outcomes of Informal Cross Border Traders in Gweru, Zimbabwe

Livelihood Outcomes of Informal Cross Border Traders Prior to the Rise of the Virtual Cash Economy in Gweru, Zimbabwe

ABSTRACT Informal cross border trade (ICBT) is a viable economic activity that many people in Zimbabwe depend upon for their survival during times of economic hardship. The research examined the livelihood outcomes of ICBT during the multi-currency era and prior to the extensive use of the virtual cash economy in Zimbabwe. Data collection instruments comprised closed and open-ended questionnaires, focus group discussions and semi-structured interviews with 497 traders at flea markets in Gweru, Zimbabwe. Results revealed that during the cash economy, ICBT generated livelihood outcomes through the exchange of cash, allowing traders to acquire land and goods and to provide employment. The study recommended the simultaneous use of the virtual cash economy and a cash economy to provide sustainable livelihood outcomes for all stakeholders. In addition, it is recommended that the government of Zimbabwe should integrate ICBT into the mainstream economy by formalization through economic policy.

High Mobility and STIs/HIV among Women Informal Cross Border Traders in Southern Mozambique: Exploring Knowledge, Risk Perception, and Sexual Behaviors.

High circular mobility creates vulnerability and elevates risk for sexually transmitted infections (STIs) including Human Immunodeficiency Virus (HIV). We aim to explore knowledge, perceptions of risk, and sexual behaviors in relation to STIs/HIV, in Mozambican women involved in an informal cross border trade (ICBT) and residing in South Mozambique. A cross-sectional quantitative study, in 200 women cross border traders (WICBT), affiliated to the Mukhero Association, using a structured, face-to-face questionnaire, was conducted. Descriptive statistics and Pearson’s Chi-square test were used. The median age of participants was 37.0 years (interquartile range (IQR): 31.0–43.0), 100% were literate, travelled on average six times a month. WICBT with a high education level were more likely to have awareness of Gonorrhea, Syphilis, and Candidiasis; to self-perceive being at risk of getting HIV, Syphilis, and Human Papilloma Virus (HPV); and to test for HIV and Syphilis. Those with a low education level were more likely to have misconceptions about HIV and ever have sex in exchange for money/goods/services. Married participants were more likely to know how to prevent HIV. Participants with a high income were more likely to know about HPV; to self-perceive being at risk of getting Syphilis; to point sex workers as being at higher risk of getting HPV; and to ever test for HIV. WICBT with a low income were more likely to have sex in exchange for money/goods/services. Low and inconsistent knowledge and misconceptions of STIs/HIV, high sexual risky behavior, low perception of risk of getting STIs/HIV among this neglected and key population suggests their increased vulnerability to the STIs/HIV.

On Decolonising Borders and Regional Integration in the Southern African Development Community (SADC) Region

This paper uses insights gained from a qualitative study of informal cross border actors on selected Southern African Development Community (SADC) borders to argue for the decolonisation of these borders. It is asserted that, although SADC citizens enjoy a 90-day free visa in member states, this should not be simplistically taken to mean that there are “open borders” and free movement of persons in region. The recognition that a border “open” to formal actors may be closed to informal cross border actors based on issues of power and class is the foundation for the decolonisation of these borders, a process which should articulate to the regional integration project in the region. Such a decolonisation of borders should recognise in policy and/or border management regimes all cross-border actors, especially non-state actors, who are criminalized and rendered invisible through cross border discourses and policies. This point is worth emphasizing, because most people who cross African borders may not be the formal actors such as multinational corporations (MNCs) and/or their proxies who are favoured by cross border policies, but ordinary people such as informal cross border traders and border citizens, who need decolonised borders for them to enjoy freedom of movement, rather than being depoliticized and relegated to the subaltern who cannot speak, let alone move.

English

Women in Malawi have been at the forefront of cross border trade both as a source of income and employment though they face numerous challenges. The paper investigates the challenges that the cross-border women face in the case of Limbe ICBT. A sample size of 30 participants was targeted that included 28 women cross-border traders, taxation authorities and Indigenous Business Association of Malawi (IBAM) officials. This data was analyzed using descriptive statistics. In total 24 valid questionnaires were collected of the 30 participants.  Challenges identified were lack of adequate funds to support businesses, high taxes, transportation costs, corruption by taxation-authorities officials, competition from big companies, unstable exchange rate and unstable prices from the market. The study revealed the relationship that exists between taxation authorities, women ICBT and IBAM though the relationship is not as strong as expected. It was established that none of the ICBT women were aware of the existence of regional protocols and none seem to be knowledgeable about cross- border rules, regulations and other protocols when it comes to clearance of goods and services. Most of the ICBT do not know how the calculations of import duties and how other charges occur. They have no knowledge of how they are charged at the border. One of contributing factors is their level of education which is very low leading to poor understanding of rules, regulations and import protocols. It is recommended that taxation authorities should embark on providing comprehensive training to these women if they are to maximize the duty collection.   Key words: Women traders, small and medium-sized enterprises, Informal Cross Border Traders (ICBT), SADC.

Balancing Between Legality and Illegality: Russian Import of Japanese Used Cars and Unauthorized Export of Russian Marine Bioresources to Japan

This article focuses on two main issues: the ability of informal cross-border entrepreneurs to avoid restrictions imposed by a government, and governmental capacity to make these restrictions work efficiently in the long term. Two kinds of informal trade activities between Russia and Japan—import of used cars and trafficking of marine bioresources—are taken as case studies. I argue that in both cases informal cross-border traders have tried to exploit cross-border differences to their benefit, balancing between legal, low-punishable, and heavily punishable practices. Both kinds of informal trade proved to be highly resistant to suppressive government policies and highly capable of exploiting legal and law enforcement loopholes. Still, suppressive government policies proved to be at least partially successful in the long term.

The Human Side of Regions: Informal Cross-border Traders in the Zambia–Malawi–Mozambique Growth Triangle and Prospects for Integrating Southern Africa

ABSTRACTThis paper examines the activities of informal cross-border traders (ICBTs) in the contiguous borderlands of Zambia, Malawi and Mozambique, in order to determine the replicability and feasibility of the growth triangle phenomenon, which was imported as a concept for economic development from Southeast Asia. It also seeks to establish whether ICBTs can satisfy their economic needs from cross-border trade. Apart from the thorough review of relevant literature, participant observations, face-to-face interviews and focus group discussions were deployed to collect the data for the analysis contained in the paper. Primary data from the fieldwork conducted at various locations in the borderlands is qualitatively and statistically analyzed. ICBTs in these areas include affiliates of traders’ associations and non-affiliates. The contiguous borderlands of the three countries comprise a young population of ICBTs with low incomes who have spent relatively few years in cross-border trade. ICBTs who have been longer in the informal trade business have graduated into formal traders. ICBT activities highlight their contribution to regional integration, from the bottom up. Informal cross-border trade provides employment and livelihoods, placing ICBTs outside extremely poor populations living below USD$1.25 per day. ICBTs also have innovative informal ways of accessing credit based on personal interactions and shared experiences with suppliers of goods. Legally establishing the growth triangle creates an environment that ICBTs exploit in order to satisfy their economic needs, especially with government facilitation.

Incomes Disparity along Gender Lines: The Plight of Women in the Informal Sector

ABSTRACTThe contributions to development of informal sector activities have received mixed views both in literature and in various policy discourses. This paper examined the gender dimension of incomes in the informal sector, focusing on individuals who were involved in buying and selling across national borders, referred to as Informal Cross Border Traders (ICBT). From a comparative gender perspective, focus was on whether the stated activities were raising incomes of those participating above the poverty datum line. Poverty reduction was considered to have occurred when the informal sector activities had improved their incomes. Surveys were conducted using the questionnaire to collect primary data. Secondary information was obtained from documentary searches at institutions and the internet. While the paper showed that ICBT improved incomes of participants, however men financially benefited more than women. Thus, the analysis revealed a gender bias in favour of men, which needs to be recognised by devel...

Trade and Women

We outline the various channels through which women are part of the global trading economy. It focuses on women as consumers, workers, business owners, and informal cross-border traders. Trade theory offers rich implications for the relationship between gender and trade, but depends on patterns of consumption and production that may differ across countries. As an example, we examine the case of agricultural products, a sector in which products are consumed relatively more intensively by women than by men. The evidence shows that tariffs are higher in this sector, which means that women consumers are disadvantaged relative to men. On the other hand, the extension of export opportunities in developing countries in light manufacturing industries, such as apparel, can offer important prospects for women workers; these opportunities are often their entry point into the formal labor market, and provide an independent income that can change household power dynamics in a favorable way. New empirical evidence from developing country firms shows that internationally engaged firms tend to employ a higher proportion of women workers. However, much remains to be done. Discriminatory norms are deeply engrained in all countries, and are reflected in a global gender wage gap. Moreover, women-owned businesses, although active in the international economy, face specific obstacles that make it harder for them to grow and succeed. Although trade has the potential to support gender-inclusive growth and development, it will be important to get domestic regulatory settings right, so that a positive cycle can result.

Life in the Fringes: Economic and Sociocultural Practices in the Zambia–Malawi–Mozambique Borderlands in Comparative Perspective

ABSTRACTThis paper examines the cross-border sociocultural and economic activities of the inhabitants of the contiguous border areas of Zambia, Malawi, and Mozambique (ZMM), in order to compare perceptions towards each of these practices by various actors including informal cross-border traders (ICBTs), ordinary inhabitants of the borderland communities of these countries, non-governmental organizations (NGOs), and state and local authorities, among others. The specific sociocultural practices in question include the accessing of social services, fulfillment of sociocultural needs/obligations, and the economic activities, informal cross-border trade. Legislations, policy reports and scientific publications are thoroughly reviewed and interviews with key policymakers, ICBTs, and locals are conducted. Qualitative and quantitative analysis of data collected from the interviews is also performed. Various actors generally regard accessing social services (such as education and health) across borders by nationals of neighboring countries as normal and “acceptable” practices while some forms of informal cross-border trade are regarded “unacceptable.” However, both sociocultural and economic actors engage in cross-border activities out of necessity, convenience, for survival, and as practices which they, being inhabitants of the borderlands, have traditionally followed. Representatives of state and local governments in the adjacent provinces of the contiguous borderlands should form transboundary coordinating committees through which to establish sustainable and effective burden-sharing and service provision systems, to meet the socioeconomic needs of borderland inhabitants.