Informal cross-border trade is trade between neighboring countries conducted by vulnerable, small, unregistered traders. Typically, it is proximity trade involving the move of produce between markets close to the border. The informality refers to the status of the trader (unregistered), not necessarily to the trade itself (captured or unrecorded by the official customs system).
The distinction between ‘formal’ and ‘informal’ traders is academic and does not necessarily exist in daily trading practices. A 2000 study of cross-border traders between South Africa and Mozambique found that most had some engagement with officials, with many traveling with valid visas between the countries, and most paying some (though not all) duties on goods. This overlapping behavior blurs the distinction between formality and informality in real-life settings. Nevertheless, the linkages between formal and informal trade remain indisputable. Formality, fundamentally, refers to the procedures of trade itself and not necessarily the goods traded or the traders themselves.
Across the continent, African countries are implementing various projects to improve intra-regional trade, with a specific focus on improved trade facilitation and the constraints that impede cross-border trade. Efforts have focused on ensuring improved hard infrastructure such as one-stop border posts, together with policy and regulatory reforms. However, while improved trade facilitation has reduced constraints to cross-border trade, one of the lesser areas of focus is the gendered impact that hard and soft infrastructure has on informal cross-border traders, specifically women traders. Women informal cross-border traders constitute up to 70% of informal cross-border trade in Africa; despite this, policy reforms and infrastructural improvements do not always factor in a gender-sensitive approach.
This paper focuses on the case study of the Busia One-Stop Border Post (OSBP), one of the busiest border crossings between Kenya and Uganda, in order to examine the impact that improvements to soft and hard infrastructure have had on the daily trading realities of women traders. In discussing the Busia case study, the paper assesses the specific constraints currently facing women traders in East Africa and how policy and infrastructural reforms have responded to the needs of women. It concludes with recommendations on helping government agencies meet the needs of women traders.
The plight of women informal cross-border traders (WICBTs) has long been on the margins of debates on improving regional trade and integration in Africa. Up to 70% of informal cross-border traders on the continent are women, who are often the breadwinners in their families
WICBTs face numerous economic and personal challenges in their everyday activities. While a lot of research has looked at the general challenges facing WICBTs in efforts to formalize their trading, less attention has been paid to the way in which soft and hard infrastructure can contribute towards or hinder the everyday trading realities of WICBTs.
This paper assesses the positive, negative or neutral impact that African governments’ pursuit of improved trade facilitation (specifically one-stop border posts [OSBPs] and simplified trade regimes [STRs]) has on WICBTs.
At the Busia border crossing (between Uganda and Kenya) it is clear how even small changes to border infrastructure – such as night lighting and overnight lodging facilities – can improve the everyday trading experiences of WICBTs and ensure their personal safety.
Women traders interviewed in Busia confirmed that the implementation of the STR and the OSBP had improved bilateral relations between traders and government officials and reduced incidents of corruption and requests for bribes