I have always imagined Africa as a quilt made up of different borders.
Straight and squiggly lines sown together, a legacy of colonialism. I think about this both in a historical and theoretical sense. My quilt analogy is apt because with trade, Africa is currently putting together the pieces that will make it easier to trade across the region and beyond.
International trade delivered a remarkable transformation with the advent of the World Trade Organization and multilateralism, coupled with a fall in tariffs across the world. Regionalism and bilateral trade arrangements then took center stage. Regional integration became a launch pad for intra-Africa trade underpinned by various high-level laws and policies ratified by nation states. The fall in tariffs across many years was replaced by “non-tariff barriers,” regulations and other barriers (including corruption) that hinder market access. Today, this is one of the most troublesome areas in trade.
The trading space in Africa has grown in leaps and bounds through the years. Meanwhile, people and governments are working to “make trade work better.” The key to the success of trading in the region includes — but is not limited to — workable trade policies, implementation of trade facilitation measures and reforms as well as inclusivity and governance structures. How do we best move good across borders in a timely and cost-effective manner? How do we make sure that all players and stakeholders get a seat at the table? How do we pull together all the different components that make trade work?
One area that doesn’t get the attention it deserves is informal cross border trade. This includes trade by women, men, and youth. Women alone account for up to 70 percent of informal cross-border trade in Africa.
Strengthening trade requires strong institutions and an effective governance structure.
Trade policies have been shown to affect gender in different ways, exacerbating poverty in some areas a while alleviating poverty in others. There’s a concerted effort in Africa to come up with policies to help informal cross border traders formalize their operations. Regardless of economic groupings, policymakers have an obligation to help create a safe environment for all actors. Regrettably, in most instances, state actors are complicit (in enabling) or being ambivalent (towards eradicating) corruption, harassment, sexual abuse, and smuggling, among other vices of informal cross border trade.
Furthermore, for policy makers to make informed decisions on household poverty and welfare and how women and men are impacted we must continue interrogating the ways our economic policies (trade policies) are structured. This can be done by giving women a seat at the policy decision making table for their voices to be heard.
Strengthening trade requires strong institutions and an effective governance structure. This provides a framework where structures and incentives are put in place to promote private sector-led growth, inclusivity and better welfare outcomes for citizens.
CIPE’s current vision for trade in Africa includes the implementation of projects on the Africa Continental Free Trade Area in Ethiopia, Nigeria and Kenya as well as the development of a regional trade strategy for Africa.
The current programming seeks to empower the African private sector with information, tools, and platforms to better adapt to the new trade regime and to establish multi-stakeholder linkages and coalitions between various stakeholders involved. CIPE and the Global Alliance for Trade Facilitation are currently involved in implementing private sector centered trade initiatives in Africa.
Published Date: February 17, 2022