Empowering women informal cross-border traders in Africa

Women involved in informal cross-border trade in Africa continue to face challenges such as invisibility, stigmatization, violence, and lack of recognition for their economic contributions. In a recent interview with CNBC Africa, Aissa Toure Sarr, the Rwanda Country Manager of the Africa Development Bank Group, shed light on the hurdles that women cross-border traders encounter and discussed potential solutions to empower them further. Despite women accounting for 70% of cross-border traders, they remain largely invisible in this sector, which leads to numerous challenges. Female cross-border traders are disproportionately affected by issues such as corruption, violence, and harassment, both physical and verbal. These challenges make their work significantly harder compared to their male counterparts. Additionally, the low volume of transactions that women engage in results in high transaction costs, discouraging them from formalizing their businesses. Furthermore, Sarr highlighted the lack of recognition from governments regarding the importance of cross-border trade and the specific issues faced by women in this field. She emphasized that the invisibility of women in cross-border trade is a result of poor measurement and regulation of this sector, leading to a scarcity of data on female traders and their challenges. Recognizing the economic value that women bring to cross-border trade is crucial in shifting the narrative and improving their situation. Regional economic commissions play a key role in regulating cross-border trade and addressing the barriers that women encounter. While these commissions have appropriate instruments in place to regulate trade activities, enforcement remains a significant challenge. Many women involved in cross-border trade are unaware of these regulations, which leads them to opt for informal trade practices. Increasing awareness among women traders and ensuring the enforcement of regulations can facilitate their engagement in formal business activities. Moreover, initiatives such as one-stop border posts have proven to be beneficial for cross-border traders, especially women. Countries like Rwanda have implemented successful one-stop border post systems, which have streamlined the process of moving goods across borders. The African Development Bank has been instrumental in supporting such initiatives, facilitating cross-border trade and improving the efficiency of trade activities. The African Continental Free Trade Area (AfCFTA) has the potential to revolutionize cross-border trade in Africa. However, its effectiveness depends on widespread awareness and proper enforcement of its provisions. Sarr emphasized the importance of implementing the AfCFTA instruments fully to leverage its benefits and enhance trade dynamics across the continent. When discussing trade agreements, Sarr pointed out that women's specific needs and interests are often overlooked. While trade agreements have the potential to benefit women economically, there is a gap in translating these benefits into tangible outcomes for women traders. Ensuring that trade agreements consider and address women's concerns, coupled with effective implementation, can contribute significantly to the economic empowerment of women in African countries.