There is a notable absence of a comprehensive understanding regarding informal cross-border trade in Africa (Photo: UNDP)Addis Abeba – The Ethiopian government is taking strides to acknowledge and regulate the longstanding informal cross-border trade occurring along the Djibouti border. The other strategy employed by African nations to enhance intra-regional trade is the formalization of existing informal border trade. Despite its importance to African countries, there appears to be a lack of comprehensive understanding regarding informal cross-border trade within the continent. A study conducted by UNECA reveals that informal cross-border trade is estimated to account for a substantial proportion, ranging from 30% to 72%, of the formal trade between neighboring nations. The Ministry of Trade and Regional Integration is also introducing a comprehensive legal framework to regulate informal cross-border trade activities that exist near the border with South Sudan.

Source: Ethiopian News July 04, 2023 10:31 UTC