Enhancing policy responses
The 2020 edition of the African Trade Report, which examines trade and economic developments in Africa and other parts of the world in 2019, is another important outcome of research and analytical work in the deepening partnership between the African Export-Import Bank and United Nations Economic Commission for Africa. This year’s edition focusing on cross-border informal trade (ICBT) is particularly relevant and timely. It is released on the eve of trading under the African Continental Free Trade Agreement (AfCFTA) and can provide the basis for monitoring the changing patterns and dynamics of intra-African trade during the implementation of the AfCFTA. It focuses on a very important theme with wide-ranging implications for intra-African trade, gender and welfare. ICBT is estimated to account for a significant portion of intra-African trade; and in a context of limited employment opportunities in the formal sector it has been critical for generating employment and income needed to sustain living standards in countries where social safety nets and unemployment insurance simply do not exist. And with the disproportionate participation of women as informal cross-border traders, ICBT has emerged as an important source of income for vulnerable groups and the path for reducing gender disparity through women economic empowerment. Despite the significant contribution of ICBT to the continent’s economic development, expansion of intraregional trade, job creation and gender equality, as well as the realisation of Sustainable Development Goals (SDGs), very little is known about its dynamics, scale and composition as well as its contribution to intra-African trade. For most countries across the region, its contribution to African trade is not known partly because ICBT is simply not accounted for in balance of payments and national accounts statistics. The ICBT survey along the highway of the Abidjan-Lagos Corridor jointly carried out by the African Export-Import Bank and the United Economic Commission for Africa is the first attempt to produce a comparable ICBT data across countries to improve national accounts and eventually enhance policy responses to boost intra-African trade and overall economic growth across the region. But the integration of ICBT data in national accounts is also set to enhance the contribution of women to aggregate GDP across the continent and in the process accelerate the process of global income convergence. This flagship report is an important contribution to the body of knowledge on trade and economic development. It also illustrates the tremendous benefits of our deepening partnership with Afreximbank — an outstanding institution that has taken the lead in the promotion of African trade and economic integration.