RISKY BUSINESS: CROSSING BORDERS IN THE GREAT LAKES REGION OF AFRICA. Paul Brenton Trade Practice Leader Africa Region World Bank

Size: px

Start display at page:

Download "RISKY BUSINESS: CROSSING BORDERS IN THE GREAT LAKES REGION OF AFRICA. Paul Brenton Trade Practice Leader Africa Region World Bank"

William Hensley
7 years ago
Views:

1 RISKY BUSINESS: CROSSING BORDERS IN THE GREAT LAKES REGION OF AFRICA Paul Brenton Trade Practice Leader Africa Region World Bank

2 Context and overview Enormous potential for cross-border trade in the Great Lakes region with implications for food security and poverty reduction and re-integration of ex-combatants What is the current situation at the border? Lack of information on trade and border conditions Comparisons of prices in different markets suggests borders very thick Survey of cross-border traders shows high level of harassment and informal payments Lack of governance at the border provides poor benchmark for rest of country

3 For the Kivus s, large and proximate markets are across borders to the East

4 Information from market prices shows that borders create substantial barriers Analysis show shows that Crossing the Burundi-Rwanda border is equivalent to pulling markets an additional 174 km apart or in terms of time, an extra 4.6 hours apart. Crossing the Burundi-DRC border is equivalent to pulling markets 1824 km apart or 41 hours in time Crossing the DRC-Rwanda border is equivalent to adding an extra 1549 km or an additional 35 hours. Conclusion: crossing the DRC border leads to higher and more volatile prices for basic food products

5 Survey of cross-border traders in the Great Lakes Region of Africa 4 key border crossings Kasindi-Mpondwe Goma-Gisenyi Bukavu-Cyangugu Uvira-Gatumba Survey of 181 traders through in depth interviews (100) and focus groups (81) In addition, 58 interviews with stakeholders at the border

6 Key characteristics of traders and officials Mainly agricultural traders. Entrepreneurial poor who do a vital job in linking farmers to markets Substantial impact on household welfare in border areas (77%) report that household income is heavily dependent on their trading activity Contribution not recognised by the state Majority are women (85% of respondents). Average age of trader is 32 Most sell foodstuffs Start up capital is very small (<$50) 95% wish to invest and grow their business Few are members of a traders association Most (82%) of stakeholders (officials) are men

7 Crossing the border is a risky business Reported frequency of risks by cross border traders

8 Conclusions A majority of cross-border traders regularly suffer gross violations of their human rights The lack of security and safety undermines the livelihoods of these mainly women traders Compounds lack of access to finance, information, knowledge But there is no alternative they are stuck in a survival economy Addressing insecurity issues at the border will facilitate trade, improve incomes, contribute to regional food security, provide for greater stability and increase job opportunities Improving governance at the border sets example for elsewhere in the country

9 Next steps (1) Make improving conditions at the border a highlevel policy priority Increase transparency and predictability of policy regime at the border Reduce number of agencies to four (as in regulation) Provide clarity to officials and traders on rules regarding taxation and inspection Increase cross-border cooperation and coordination Implement Traders Charter which defines basic rights and obligations

10 Next steps (2) Increase professionalism of officials Increase number of women officials but this alone insufficient Improve training and create gender aware officials Establish effective and credible complaints office Improve infrastructure at border crossings used by traders Improve security and reduce safety risks Implement a strategy to integrate poor entrepreneurs into the formal economy. Increase the representation of traders through traders association Address lack of access to finance, lack of information on prices and business opportunities and training in basic business practices. Investigate the potential beneficial impact of warehousing facilities and the development of cross-border markets

Facts on People with Disabilities in China

Facts on People with Disabilities in China Background In China, a disabled person is defined as one who suffers from abnormalities of loss of a certain organ or function, psychologically or physiologically,