ECA/ATPC Inception Workshop on Mainstreaming Gender into Trade Policy Addis Ababa, 21-22 April 2009 SHARING THE FINDINGS OF THE BASELINE STUDIES ON WOMEN.

ECA/ATPC Inception Workshop on Mainstreaming Gender into Trade Policy

Addis Ababa, 21-22 April 2009

SHARING THE FINDINGS OF THE BASELINE SHARING THE FINDINGS OF THE BASELINE STUDIES ON WOMEN IN INFORMAL CROSS STUDIES ON WOMEN IN INFORMAL CROSS

BORDER TRADE IN AFRICABORDER TRADE IN AFRICA

United Nations Development Fund for Women

UNIFEM

INFORMAL CROSS BORDER TRADERSINFORMAL CROSS BORDER TRADERS

Outside Musina train Outside Musina train station, this woman had station, this woman had just placed her luggage just placed her luggage on the ground to rest on the ground to rest when a voice emanating when a voice emanating from the platform from the platform announced, “… hurry-announced, “… hurry-up mama, the train is up mama, the train is about to leave!” She about to leave!” She gathered her strength, gathered her strength, grabbed her belongings grabbed her belongings and staggered on. - and staggered on. - Picture courtesy of Picture courtesy of Moshe Sekete Moshe Sekete

(Source IOM Photo (Source IOM Photo Exhibition on WICBT Exhibition on WICBT in Southern Africa)in Southern Africa)

CONTENT OF THE PRESENTATIONCONTENT OF THE PRESENTATION

Basic information on the UNIFEM Feminized Poverty Programme (FPP)

Why the choice of WICBT? Objectives of the baseline studies on

WICBT Research methodology Research findings Focus of Phase II of the FPP Some recommendations

BASIC INFORMATION ON THE FPPBASIC INFORMATION ON THE FPP

Project title:Project title: Strengthening Responses to Create Wealth and Strengthening Responses to Create Wealth and Reduce Poverty for Women in Informal Cross-border Trade in Reduce Poverty for Women in Informal Cross-border Trade in Africa Africa

Programme DurationProgramme Duration: 1: 1stst phase: January 2006 – December phase: January 2006 – December 2008; 22008; 2ndnd phase: 2009-2010 phase: 2009-2010

Potential regional partners:Potential regional partners: AU, RECs, ADB, CODESRIA AU, RECs, ADB, CODESRIA

Possible UN PartnersPossible UN Partners: UNECA, ILO, UNDP, IFAD, FAO, : UNECA, ILO, UNDP, IFAD, FAO, IOMIOM

Estimated total budgetEstimated total budget: USD 8,000,000: USD 8,000,000

BASIC INFORMATION ON THE FPPBASIC INFORMATION ON THE FPP

Strategic focus:Strategic focus: Deepening understanding and knowledgeDeepening understanding and knowledge of women in ICBT of women in ICBT Strengthening the capacity and organizing of WICBTStrengthening the capacity and organizing of WICBT to to

increase the profitability of their activities and bargaining powerincrease the profitability of their activities and bargaining power

Strengthening the capacity of intermediary organisations and Strengthening the capacity of intermediary organisations and institutionsinstitutions to analyze, advocate and actively influence trade to analyze, advocate and actively influence trade policies and poverty reduction strategies so that they can benefit policies and poverty reduction strategies so that they can benefit WICBTWICBT

Supporting the review and revision of laws, regulations Supporting the review and revision of laws, regulations policies, systems and practicespolicies, systems and practices that discriminate against WICBT that discriminate against WICBT and hinder their access to and control of productive resources and and hinder their access to and control of productive resources and markets. markets.

WHY THE CHOICE OF WICBT?WHY THE CHOICE OF WICBT?

Official sources report an average value of Official sources report an average value of informal cross border trade in the SADC informal cross border trade in the SADC Region: US$ 17.6 billion per year (Southern Region: US$ 17.6 billion per year (Southern Africa Trust, August 2008)Africa Trust, August 2008)

ICBT contributes for 30-40% to intra-SADC ICBT contributes for 30-40% to intra-SADC TradeTrade

70% of informal cross border traders are 70% of informal cross border traders are women. women.

Main foodstuffs traded in 2006/7 are maize Main foodstuffs traded in 2006/7 are maize (97,000 MT), rice (6,500 MT) and beans (97,000 MT), rice (6,500 MT) and beans (10,000 MT). 8(10,000 MT). 8

‘‘By ignoring informal cross border trade, By ignoring informal cross border trade, SADC member States could be overlooking a SADC member States could be overlooking a significant proportion of their trade’. significant proportion of their trade’.

IOM Photo exhibition on WICBT

WHY THE CHOICE OF WICBT?WHY THE CHOICE OF WICBT?

Trade is the Trade is the most important source of most important source of employment among self-employed womenemployment among self-employed women of SSA providing 60% of non-agricultural of SSA providing 60% of non-agricultural self-employment (ILO 2004). self-employment (ILO 2004).

In West and Central Africa, WICBT “employ In West and Central Africa, WICBT “employ 1.2 people in their home businesses; support 1.2 people in their home businesses; support on average 3.2 children as well as 3.1 on average 3.2 children as well as 3.1 dependants who were not children or dependants who were not children or spouses.” (Oculi n.d.: 8). spouses.” (Oculi n.d.: 8).

Contribution to national GDPContribution to national GDP: 64% of : 64% of value added in trade in Benin; 46% in Mali value added in trade in Benin; 46% in Mali and 41% in Chad (Charmes 2000, cited in and 41% in Chad (Charmes 2000, cited in ILO 2004). ILO 2004).

WICBT address vital issues of livelihoods WICBT address vital issues of livelihoods such as food and income securitysuch as food and income security, Yet they , Yet they are neglected by mainstream trade policies are neglected by mainstream trade policies and institutions, thus undermining the and institutions, thus undermining the profitability of their activitiesprofitability of their activities

Photo IOM: Zimbabwe border with South Africa

OBJECTIVES OF THE BASELINE STUDIESOBJECTIVES OF THE BASELINE STUDIES

To identify the global, regional and national policy and regulatory frameworks that To identify the global, regional and national policy and regulatory frameworks that have an impact on ICBThave an impact on ICBT

To scan the overall operating environment of WICBTTo scan the overall operating environment of WICBT

To analyse the economic and social position of WICBTTo analyse the economic and social position of WICBT

To analyse:To analyse:– the nature and intensity of women’s activities in ICBT;the nature and intensity of women’s activities in ICBT;– their determinants and constraints;their determinants and constraints;– the mapping of their locations within the production and value chains at the mapping of their locations within the production and value chains at

different levels as well as their routing patterns; and different levels as well as their routing patterns; and – their coping strategiestheir coping strategies

To identify the responses that should be provided for addressing those issues and To identify the responses that should be provided for addressing those issues and barriers at the policy level as well as in terms of service provision; and barriers at the policy level as well as in terms of service provision; and

To develop baseline data and indicators for programming in order to enhance To develop baseline data and indicators for programming in order to enhance

women’s engagement in and benefits from ICBT.women’s engagement in and benefits from ICBT.

RESEARCH METHODOLOGYRESEARCH METHODOLOGY Desk-based studies of secondary researchDesk-based studies of secondary research

Focus group discussionsFocus group discussions Institutional survey (COMESA and SADC)Institutional survey (COMESA and SADC)

In depth individual case studies In depth individual case studies

Surveys of women and men ICBT conducted in various border Surveys of women and men ICBT conducted in various border points in:points in:– Southern Africa: Swaziland (400) and Zimbabwe (457 respondents)Southern Africa: Swaziland (400) and Zimbabwe (457 respondents)– Eastern Africa: Tanzania (95)Eastern Africa: Tanzania (95)– Central Africa: Cameroon (400)Central Africa: Cameroon (400)– English speaking West Africa: Liberia (400)English speaking West Africa: Liberia (400)– French speaking West Africa: Senegal, Niger, Guinea, Togo (600)French speaking West Africa: Senegal, Niger, Guinea, Togo (600)

RESEARCH FINDINGSRESEARCH FINDINGS

The research has confirmed that:The research has confirmed that:– Cross border trade contributes to poverty reduction, Cross border trade contributes to poverty reduction,

employment and wealth creationemployment and wealth creation

– There are gender differences in the types of goods and There are gender differences in the types of goods and services provided by WICBTservices provided by WICBT

– WICBT face various constraints and adopt various WICBT face various constraints and adopt various coping mechanismscoping mechanisms

– There are several levels of accountability to address the There are several levels of accountability to address the issues faced by WICBTissues faced by WICBT

RESEARCH FINDINGSRESEARCH FINDINGS Cross border trade contributes to poverty reduction, employment and wealth creation as shown Cross border trade contributes to poverty reduction, employment and wealth creation as shown

in tables 1, 2 and 3in tables 1, 2 and 3

MaleMale FemFem MaleMale FemFem MaleMale FemFem MaleMale FemFem

ICBTICBT 6464 8383 9696 9191 8585 4848 2424 6060

Spouse formal Spouse formal employment employment

2525 00 11 33 00 2020

Spouse informal Spouse informal employment employment

66 00 00 00 00 88

Salaried employee Salaried employee 22 88

Farming Farming 00 00 33 44 00 55 6464 2828

Remittances Remittances 00 00 00 00 00 33

Other Other 66 1717 00 22 1515 1818 1010 22

Total Total 101101 100100 100100 100100 8585 6868 100100 100100

Zimbabwe Liberia Swaziland Tanzania

Traders by major/main source of income for family

RESEARCH FINDINGSRESEARCH FINDINGSTraders by reason for engaging in ICBT and by sexTraders by reason for engaging in ICBT and by sex

MaleMale FemFem TotTot MaleMale FemFem TotTot MaleMale FemFem MaleMale FemFem MaleMale FemFem

IncomeIncome 6363 6161 6262 6565 7070 6868 3333 8686 6464 7575 7171 8181

EmploymentEmployment 2929 5353 4141 4040 3333 3535 7070 5050 6969 7979

Food securityFood security 3737 2525 3131 1212 3333

HIV/AidsHIV/Aids 33 00 11 00 00

Share ideasShare ideas 99 33 66 33 33 33 1010 4747 33 88 55 88

OtherOther 1515 3636 66 33 22 88

Zimbabwe Liberia Cameroon Swaziland Tanzania

RESEARCH FINDINGSRESEARCH FINDINGSTraders by use of income from cross-border trading and sexTraders by use of income from cross-border trading and sex

MalMal FemFem TotTot MaMa FeFe TotTot MaMa FeFe MaMa FeFe MaMa FeFe TotTot

Reinvest in businessReinvest in business 7777 6969 7373 7979 7979 8181 1818 1717 6767 7575 5252 2626 3838

Food for householdFood for household 8989 7878 8383 6868 6969 6969 2020 2020 7373 7676 8888 8787 8787

Personal effectsPersonal effects 5151 6464 5858 1111 1212 7373 5555 7676 6666 7171

RentRent 5151 6767 5959 6868 6969 6969 1313 1414 3030 2020 3333 3838 3636

School feesSchool fees 5151 5353 5252 3636 3636 3636 1515 1616 3030 6060 7676 8181 7979

Household gadgetsHousehold gadgets 4646 4444 4545 44 22 2727 1818

Health care servicesHealth care services 2929 2222 2525 7272 7070 7070 1717 1818 3333 3030 7171 7272 7272

Build a houseBuild a house 7070 6464 6565 4040 2323 3131

Save in susu clubSave in susu club 3333 3030 3030

Save in bankSave in bank 4141 4242 4141

OtherOther 22 11 1515 33 1818 99 1313

Zimbabwe Liberia Cameroon Swaziland Tanzania

RESEARCH FINDINGSRESEARCH FINDINGS

Impact on Government revenueImpact on Government revenue

In Liberia, 66%) of respondents felt that government lost potential revenue from ICBT In Liberia, 66%) of respondents felt that government lost potential revenue from ICBT through corruptionthrough corruption. A further 9% of respondents said that the increasing number of border . A further 9% of respondents said that the increasing number of border points added to the difficulties for government of collecting and accounting accurately for points added to the difficulties for government of collecting and accounting accurately for revenue revenue

In Cameroon 12% of male traders and 42% of female felt that ICBT caused In Cameroon 12% of male traders and 42% of female felt that ICBT caused government to lose revenuegovernment to lose revenue. Reasons offered included non-declaration of imported products . Reasons offered included non-declaration of imported products and thus non-payment of taxes, and endemic corruption among tax officials and police which and thus non-payment of taxes, and endemic corruption among tax officials and police which meant that collected revenue did not end up in the state coffers.meant that collected revenue did not end up in the state coffers.

The The TanzanianTanzanian team was given access to records of the Tanzania Revenue Authority at two team was given access to records of the Tanzania Revenue Authority at two of the border posts. Examination of these records suggested that of the border posts. Examination of these records suggested that collections from small collections from small traders (defined as amounts less than USD 500) were contributing in a small, but traders (defined as amounts less than USD 500) were contributing in a small, but increasing, way to government revenue. increasing, way to government revenue.

In Zimbabwe, 84% of the interviewed traders (89% of men and 78% of women) said In Zimbabwe, 84% of the interviewed traders (89% of men and 78% of women) said that they paid the required duties for the goods they imported into the country. In that they paid the required duties for the goods they imported into the country. In Swaziland, 52% of interviewed traders said that they paid the required import dutiesSwaziland, 52% of interviewed traders said that they paid the required import duties , , with a further 48% reporting that they paid only part of the required duties.with a further 48% reporting that they paid only part of the required duties.

RESEARCH FINDINGSRESEARCH FINDINGSWhat are the goods and services traded by WICBT?What are the goods and services traded by WICBT?

Most of the goods traded by WICBT are agricultural commoditiesMost of the goods traded by WICBT are agricultural commodities. For . For instance, in Liberia, agricultural goods account for the majority of imports and instance, in Liberia, agricultural goods account for the majority of imports and exports (70% of women and 67% of men respondents). exports (70% of women and 67% of men respondents). The Liberian report notes The Liberian report notes that most of the agricultural goods traded are produced by the traders that most of the agricultural goods traded are produced by the traders themselves. themselves.

More women (60%) than men (40%) are involved in the imports of More women (60%) than men (40%) are involved in the imports of industrial productsindustrial products, and the composition of goods shows gender-specific , and the composition of goods shows gender-specific differences, with men engaged in higher value items such as watches and radios, differences, with men engaged in higher value items such as watches and radios, while women tend to specialize in textiles (including used clothes), plastics and while women tend to specialize in textiles (including used clothes), plastics and stationery. There is a similar pattern with the mineral and forest products, with stationery. There is a similar pattern with the mineral and forest products, with women trading mostly in imports of kerosene and beads, while imports of women trading mostly in imports of kerosene and beads, while imports of gasoline fuel are done exclusively by men who also dominate trade in gold and gasoline fuel are done exclusively by men who also dominate trade in gold and silver jewelleries. silver jewelleries.

Trade in services (transport, money exchange and warehousing services) is Trade in services (transport, money exchange and warehousing services) is dominated by mendominated by men, while women are mainly involved in carrying loads on their , while women are mainly involved in carrying loads on their heads across and within the border markets. heads across and within the border markets.

RESEARCH FINDINGSRESEARCH FINDINGS

Constraints faced by WICBT: WConstraints faced by WICBT: Weak trade-related institutions, eak trade-related institutions, services and resources:services and resources:

Liberia: Liberia: challengeschallenges

MaleMale FemFem TotalTotal

TerrainTerrain 3838 4141 4040

Type of roadsType of roads 4848 5353 5151

Number of other Number of other crossing points crossing points

7070 7777 7474

Estimation of Estimation of trade not trade not monitoredmonitored

1313 1313 1313

Communication Communication facilitiesfacilities

2828 3838 3535

Housing Housing conditionsconditions

3232 3636 3434

Liberia: main Liberia: main problemsproblems

MaleMale FemFem TotalTotal

Heaviness/Heaviness/Bulkiness of Bulkiness of goodsgoods

1818 1111 1313

Long distance Long distance 1212 1818 1616

Poor roadPoor road 1212 1111 1212

Many Many checkpointscheckpoints

22 1212 99

High taxes High taxes 2222 44 99

Sexual Sexual harassmentharassment

2525 3333 3131

Others specifyOthers specify 88 1010 99

Total Total 100100 100100 100100

RESEARCH FINDINGSRESEARCH FINDINGS

Constraints faced by WICBT: WConstraints faced by WICBT: Weak trade-related institutions, services eak trade-related institutions, services and resourcesand resources

CamerounCameroun MaleMale FemaleFemale

Access to credit Access to credit 3131 1919

Multiple control posts Multiple control posts 2929 2020

High cost of transport & High cost of transport & insecurity insecurity

1818 1919

Multiple/arbitrary taxation Multiple/arbitrary taxation 1616 1414

High cost of communication High cost of communication 33 1212

Poor accommodation & storagePoor accommodation & storage 22 1717

Total Total 100100 100100

RESEARCH FINDINGSRESEARCH FINDINGS

Constraints faced by WICBT:VAWConstraints faced by WICBT:VAW

TanzaniaTanzania MaleMale FemFem TotalTotal

Imprisonment or Imprisonment or detentiondetention

4848 4040 4343

Loss of goods to Loss of goods to officialsofficials

8686 8181 8383

Being beatenBeing beaten 2424 1919 2121

Rape Rape 5555 2626 3939

Forced to pay Forced to pay bribesbribes

7171 7777 7575

Ambushes and Ambushes and robbersrobbers

4343 3030 3636

FightsFights 2626 1111 1818

Sex for favorsSex for favors

LiberiaLiberia MaleMale FemFem TotalTotal

Imprisonment or Imprisonment or detentiondetention

2121 2323 2222

Loss of goods to Loss of goods to officialsofficials

2525 2727 2727

Being beatenBeing beaten 88 99 99

Rape Rape 88 99 99

Forced to pay Forced to pay bribesbribes

7474 7070 7272

Ambushes and Ambushes and robbersrobbers

11 11

FightsFights 1212 1212 1212

Sex for favorsSex for favors 44 55 44

RESEARCH FINDINGSRESEARCH FINDINGS Strategies used to overcome challenges by sexStrategies used to overcome challenges by sex

MaleMale FemFem TotalTotal MaleMale FemFem MaleMale FemFem TotalTotal

Giving bribe Giving bribe 8585 8686 8686 2828 3636

Stay away from border Stay away from border 55 55 55

Take action as Take action as individual individual

6262 5353 5757 7171 5757 6363

Join group/form group Join group/form group 2828 4141 3636 44 33 1919 3838 2929

Influence decisions by Influence decisions by attending meetingsattending meetings 88 55 66 8888 8787 8787

Others Others 1010 99 99 4343 2626 55 66 55

No strategy/resign No strategy/resign oneself oneself

2424 3535

Liberia Cameroon Tanzania

RESEARCH FINDINGSRESEARCH FINDINGS

Charter of Accountability for addressing the Charter of Accountability for addressing the issues of WICBTissues of WICBT

DISCUSSION OF SOME DISCUSSION OF SOME METHODOLOGICAL ISSUESMETHODOLOGICAL ISSUES

High level of suspicion on the part of the traders about the objectives of the High level of suspicion on the part of the traders about the objectives of the study (namely the fear that it could be used for taxation or other punitive study (namely the fear that it could be used for taxation or other punitive purposes).purposes).

Difficulty in defining common criteria for informality. The definitions vary Difficulty in defining common criteria for informality. The definitions vary according to countries. according to countries.

Difficulties when asking about income and other financial details of traders’ Difficulties when asking about income and other financial details of traders’ businesses, and distinguishing between gross and net income.businesses, and distinguishing between gross and net income.

The reported patterns show the profile and situation of the particular traders The reported patterns show the profile and situation of the particular traders

who were interviewed. They cannot necessarily be extrapolated to make who were interviewed. They cannot necessarily be extrapolated to make generalizations about all informal cross-border traders in a particular generalizations about all informal cross-border traders in a particular country or sub-region country or sub-region

QUESTIONS ARISING FROM THE QUESTIONS ARISING FROM THE RESEARCHRESEARCH

Do WICBT opt for invisibility? Does visibility hamper profitability? How can Do WICBT opt for invisibility? Does visibility hamper profitability? How can they be supported without ‘exposing’ them for heavier taxation?they be supported without ‘exposing’ them for heavier taxation?

Is Informal Cross border trade a viable economic option in the long run or Is Informal Cross border trade a viable economic option in the long run or should we aim for graduation? Would graduation be relevant for such small should we aim for graduation? Would graduation be relevant for such small scale businesses? scale businesses?

How can WICBT be effectively supported, taking into account the volatility of How can WICBT be effectively supported, taking into account the volatility of their activities and the numerous and complex trade regimes?their activities and the numerous and complex trade regimes?

What would be the best entry points for institutional and policy change in What would be the best entry points for institutional and policy change in favor of WICBT?favor of WICBT?

How to address data related challenges so that their activities could be better How to address data related challenges so that their activities could be better captures in national accounting systems and statistics databases of the RECs?captures in national accounting systems and statistics databases of the RECs?

FOCUS OF PHASE II OF THE FPPFOCUS OF PHASE II OF THE FPP

Three pillars:Three pillars:– Support to actions directly benefitting WICBTSupport to actions directly benefitting WICBT– Promote policy change in support of WICBT, Promote policy change in support of WICBT,

at two levels:at two levels:» Sub-regional level with the RECsSub-regional level with the RECs

» National levelNational level

– Enhance knowledge sharing on WICBT to Enhance knowledge sharing on WICBT to inform policiesinform policies

FOCUS OF PHASE II OF THE FPPFOCUS OF PHASE II OF THE FPP Amplify collective voice of WICBT in national, subregional Amplify collective voice of WICBT in national, subregional

and regional trade forasand regional trade foras Promote women cross border traders’ access to services, Promote women cross border traders’ access to services,

social safety nets, information on trade agreements and social safety nets, information on trade agreements and protocols, skills, finances and market opportunities protocols, skills, finances and market opportunities (including graduation)(including graduation)

Support trade related institutions at regional, sub-regional Support trade related institutions at regional, sub-regional and national levels to better deliver for WICBTand national levels to better deliver for WICBT

Enhance statistical databases of RECs and NSO to make Enhance statistical databases of RECs and NSO to make available GDD on WICBTavailable GDD on WICBT

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION