WOMEN IN CROSS BORDER TRADING:
AFEW years ago, during my training in Haifa, Israel (for an exchange program -Masters in Ex-MBA), I had an opportunity to visit and learn from vibrant StartUp incubators (organizations that function as a springboard for early-stage and businesses and startups with the goal of providing specialized tools needed for startups to grow and innovate. We hopped from one Incubator to the next Startup, in universities and also -private- public organizations.
Other than the youth focused ones, the programme allowed me to visit StartUps meant to empower women entrepreneurs. It is here that I came to realize that startup enterprises yield much for women entrepreneurs, and women in trade in general. This week, we shall therefore delve in discussing the status of women in cross boarder trading in Zambia, and other countries in the region.
It is estimated that 70 per cent of informal cross-border trade in Africa is conducted by women traders and that across many countries in sub-Saharan Africa it is estimated that women make up about 70–80% of informal cross-border traders. Just like in formal work spaces as discussed last week, gender wage gaps remain a challenge even for women in trade. The vise which perpetuate the concentration of women in low-productivity activities; sexual harassment and gender-based violence in economic spheres including in the work place, market places, etc.; disproportionate share of responsibilities in unpaid care and domestic work; and biased social norms that cause mobility and time constraints resulting in time poverty a limited time available to spend on economic and trade activities.
Other challenges include limited knowledge of opportunities in export markets and ways to integrate into regional value chains, limited capacity to produce value added products and services, to secure inputs at competitive prices, as well as challenges relating to compliance with regulatory requirements and safety and quality standards. The gender digital divide is seen as a key underlying challenge that limits women’s access to information and ability to engage in intra-African and regional trade.Few women entrepreneurs can compete favourably with their male counterparts in all areas of public procurement.
Women-led SMEs are beginning to participate in both regional and international export markets, but market access challenges limit their effective participation. Furthermore, the majority of women-led SMEs are not fully mainstreamed in international exportation and are
thus unable to receive institu- tional support for their service delivery.8 Women’s lower literacy levels mean that they are likely to face more difficulties in complying with border management procedures given the concomitant paperwork requirements, such as sanitary and phytosanitary certificates, certificates of origin, trade permits and export certificates .
With the Africa Continental Free Trade Area, some women are now awake to what they can benefits from such trade partnerships on continental levels. Other potential organizations that are supportive to women businesses and enterprises include the Africa Development Bank (AfDB) especially in areas of agriculture. Some reports show that women in Africa are predominantly in subsistence agriculture. They make up a large part of the agricultural labour force and produce much of Africa’s food. Also, women predominantly participate in agriculture value chains – mostly in cereals (e.g. maize, rice, wheat, soya bean), horticulture products, fish and fish products, dairy and livestock. However, women’s participation in agriculture value chains is characterized by limited production capacities, both in terms of quantity and quality. The situation is exacerbated by poor market infrastructure as well as by inconsistent policy regimes, contributing to segmented markets. Women are also limited in terms of their ability to comply with technical standards requirements for agricultural products which require packaging (including branding), labelling and certification.
This female-intensive sector has broad poverty and development ramifications. It constitutes a vital source of employment and livelihood for the poor, in particular for low-income and low-skilled women, especially in border districts.
Because cross-border trade contributes to poverty alleviation, income generation and women's empowerment, women in these spaces must be supported not only by international agencies, but by Governments putting up deliberate steps, measures and policies that support their endeavors in both business and entrepreneurship, if we are to see meaningful and significant change in national development at all levels.
For many women, intra-Africa and regional trade has brought economic empowerment and higher incomes. In African countries, women are actively engaged in sectors such as agriculture, manufacturing (clothing and textiles) and services. Opportunities from trade have brought more household resources under women’s control, which in turn has a positive effect on overall investment in the health an d education of future generations.
In the least developed countries like Malawi, Zambia and Tanzania can ill afford to miss out on revenues their governments need for schools, roads and hospitals. And by formalizing their operations, small-scale women traders would gain better access to credit and other services they need to build better businesses.
Furthermore, if properly supported, for instance in the agricultural sector, cross boarder trading for women can generate significant rural non-farm income and become a catalyst for value chain creation and support in rural areas. This benefit, in turn, can lower rural unemployment and slow rural-urban migration, while empowering women beyond the trading industry.
In one of their informative studies, the UN-Conference on Trade and DevelopmentUNCTAD found that most women have limited knowledge of customs rules in cross boarder spaces.
Another challenge is that the predominance of women in this work is often a result of constraints on their time and mobility, but also of reduced access to productive resources like land and financial resources like loans.
Lengthy clearance processes and weak governance at the border further contribute to make informal trade one of the few options available to women to earn a living in such areas.
If these and other gender-specific constraints are effectively tackled, informal cross-border trade can turn into a vibrant micro-entrepreneurial reality with significant potential to help alleviate poverty, contribute to food security and empower women.
This will help to make women cross-border traders' businesses more profitable and sustainable while making cross-border trade in general more efficient and less cumbersome. These limitations put women at a disadvantage compared to their male counterparts.