Agricultural Informal Cross-Border Trade: The Gender Dimension

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Informal cross-border trade plays an important role in food security
Insecure informal employment is common in regional agricultural value chains
Often not accounted for in formal statistics

Women represent 50% of agricultural labour force in Africa along the value chain as farmers, livestock breeders, processors, traders, workers, entrepreneurs, consumers
Temporary/seasonal employment, small-scale producers, local retail, horticulture
Increased demand for specialised foods is providing opportunities for women to higher-value agro-packing and processing jobs, and joining integrated value chains
Gender and youth inequalities lead to reduced agricultural output and inefficiencies
Access to finance and land rights: women own 20 to 70 percent less in land size
Access challenges: markets, information, networks, skills, standards, technology
The AfCFTA can provide new opportunities for women in agribusiness, value added agro-processing, and other downstream and upstream value addition activities
With AfCFTA, export-oriented agro-industries may provide new, better employment opportunities with better wages and working conditions in formal agro-processing
However, without complementary policy measures, women may remain segregated in unskilled labour-intensive activities, and the gender wage gap in labour-intensive industries may persist to drive export competitiveness

Gender inequalities: Access to finance/capital, land rights and tenure security, labour, technology, business networks, market access (as noted in the paper), access to information, digital divide
the size of land owned by women is 20 to 70 percent less than that owned by men
It is estimated that African agricultural output could more than triple if farmers could access the finance required to expand both the quality and quantity of their produce (FAO-AU, 2018)
Women traders, in particular, struggle to meet importer-mandated standards that require a high level of technical and industrial sophistication
, limited access to agricultural information
Infrastructure constraints
Horticulture jobs unlikely to have pension, material, annual leave or sickness benefits
additional domestic responsibilities and caregiving duties, with consequent implications for getting their goods to market

(especially on input and output prices)
limited access to reliable road connectivity, transport, storage, processing, and preservation has consequent implications for women farmers’ post-harvest losses
large quantities of milk produced by small-scale farmers are marketed through informal channels that do not have access to sterilisation, cooling and packaging
importance of (complementary national policies) addressing educational disparities, risk aversion, social norms and time constraints to ensure that new technologies are made accessible to small-scale women producers

Disproportionate effects on women due to border disruptions, closures, conflict
Importance of trade facilitation – taking into account informal trade and women
Digital solutions, mobile money, cross-border payments
Digital divide – (digital) literacy, access to phones, internet

Inequalities hinder export performance in agricultural economies where smallholder producers are predominant
Regional agricultural value chains have the potential to provide more opportunities for women than traditional agriculture
Advancing regional cross-border agro-food value chains means ensuring gender equality throughout the chain
Both regional trade policy and complementary national policies are important

Regional policies can sustain cross-border trade flows
Continental Guidelines on Trade and Transport Facilitation for the Movement of Persons, Goods and Services Across Africa During the COVID-19 Pandemic
Private sector innovations – aggregation of goods by women in ICBT during COVID-19
Trade facilitation – one-stop border posts, single windows, simplified trade regimes
Digital solutions to support TF, transport, logistics, taking into account the digital divide
Export Processing Zones/Special Economic Zones can support women’s economic empowerment with attention to gender wage gap and working conditions
Better ways to measure cross-border trade flows in formal statistics
ECA project with AFREXIMBANK on methodology along Lagos-Abidjan corridor

Small-scale traders aggregate goods and pay bundled fees to truck drivers for transit and clearance
Increased use of EAGC’s Grain Trade Business Hub (GHuB) application helping farmers consolidate demand for inputs and sale of produce
Build upon innovations post-COVID

Corridors and digital solutions: cargo tracking, single windows, STRs, one-stop border posts
Simplified Trade Regimes
Gender desks at police stations, female gender champion at border
Behavioural change of customs officers and border officials
Great Lakes Trade Facilitation Project – infrastructure
Temporary, simple measures effective
Solar panel lighting, sex-differentiated toilets, agri border markets
Challenges with awareness and understanding
Export processing zones can be effective for women (Madagascar example); must be careful of gender wage gap and working conditions (World Bank report)
Rwanda, the floriculture and greenfield sectors - non-traditional cash crops were seen to offer significant employment opportunities for low-income women in peri-urban and rural areas, but questions arose with respect to the quality of the work generated and associated socio-economic costs.
export-oriented agro-industries may provide new and better employment opportunities for women
Women workers in agro-processing are typically segregated in unskilled labour-intensive activities (e.g. packaging), with limited opportunities for skills development

Gender-sensitivity training for customs officers and border officials, and hiring of more women
Digital solutions taking into account gender considerations

Simplified Trade Regimes – Case study: EAC
Gender desks at police stations, female gender champion at border customs office
Fostered behavioural change, increased awareness and, improved relationships
Found to have benefitted women and youth most
Great Lakes Trade Facilitation Project – Phase 1 on infrastructure
Temporary, simple measures found effective
Solar panel lighting allowed for greater security and longer trading hours
Sex-differentiated toilets and construction of ag border markets for women traders
Challenges with awareness and understanding

While the implementation of these initiatives has been hampered by a lack of widespread awareness and understanding among traders, they appear to have positively impacted on women traders. STRs have indeed helped address some of the challenges faced by small scale and informal traders, including women, and facilitated cross border trade flows (FAO, 2017; Sommer, L., Nshimbi, C., 2018). For instance, in Kenya and Tanzania, the implementation of STRs has often been complemented by the establishment of gender desks at police stations to facilitate reporting, investigation and prosecution of cases of gender-based violence and/or discrimination. Some of the borders in the EAC have also introduced a female gender champion within the customs office that female traders can more comfortably interact with if they have challenges at the border crossings. Such initiatives have effectively alleviated some of the challenges faced by small-scale female cross border traders. They reportedly also fostered behavioural change, as government officials were found to be more aware of the gender-sensitive nature of cross border trade and the overall relationships between small traders and border officials improved (Parshotam, A., Balongo, S., 2020). In EAC, a study found that the STR has benefitted women and youth most. As for the GLTFP, part of the emphasis in the first phase of implementation of the project was to focus on women-sensitive infrastructure. Even temporary and relatively simple to implement measures were found to have greatly improved women’s trading experiences. For a more detailed discussion on the challenges of the STR, see Parshotam, A., Balongo, S. (2020) and Fundira, T. (2018).
Interview with EAC officials, October 2018.
A recent study found that measures such as the introduction of solar panel lighting, which has allowed for greater security and longer trading hours, the installation of sex-differentiated toilets and the construction of border markets for women traders’ agricultural goods have had a highly positive impact on women involved in informal cross border trade (Parshotam, A., Balongo, S., 2020)

Another such example is the Great Lakes Trade Facilitation Project (GLTFP). The World Bank-supported project was designed to facilitate cross-border trade by increasing the capacity for commerce and reducing the costs faced by traders at targeted borderland locations in the Democratic Republic of Congo, Rwanda and Uganda. Other Great Lakes countries such as Burundi and Zambia will be covered in a second phase. Key components of the project include improvements to core trade infrastructure and facilities, implementation of policy and procedural reforms, as well as capacity building to facilitate cross-border trade in goods and services, and supporting the regional coordination, facilitation and standardisation of SSCBT data collection, reporting, monitoring and evaluation.

The AfCFTA can provide new opportunities for women in agribusiness, value added agro-processing, and other downstream and upstream value addition activities
Export-oriented agro-industries may provide new, better employment opportunities with better wages and working conditions in formal agro-processing
However, without complementary policy measures, women may remain segregated in unskilled labour-intensive activities, and the gender wage gap in labour-intensive industries may persist to drive export competitiveness

Agreement recognises the importance of gender equality and improving export capacity of informal suppliers, MSMEs, women/youth
Increases in exports of agriculture and food products in excess of 25% in meat, sugar, milk and dairy products
Projected increases intra-African exports in labour-intensive industries and in low-skilled wages
Strengthening regional value chains, customs cooperation, trade facilitation
Mechanisms to address non-tariff barriers

Article 3(e) specifies that the AfCFTA aims to “promote and attain sustainable and inclusive socio-economic development, gender equality and structural transformation”. Likewise, Article 27(d) of the AfCFTA Protocol on Trade in Services makes explicit reference to improving the export capacity of formal and informal service suppliers, with particular attention to micro, small and medium-sized operators and “women and youth service suppliers”.

Agriculture/food products by 20-35%
Industrial products by over 25%
Increase in low-skilled wages leading to reduction in gender wage gap (World Bank)

Gains to be largely concentrated around intra-African trade; with about 2/3rd of the benefits in industry but still nearly ¼ in agriculture and food.
Largest increases in exports of vehicles and transport equipment, energy, metals, machinery, chemical products, sugar, other food products, wood and paper, milk and dairy, and textiles.
In relative terms, increases in exports of agriculture and food products in excess of 25% in: red meat, white meat, sugar, milk and dairy products.
Although, most of the gains in intra-African trade are expected to be in industry for Africa as a whole and most countries, gains are actually to be largest in agriculture and food in Guinea, Ethiopia, Ghana and Malawi.
Net food importers like Guinea, Egypt, Madagascar, Malawi, Senegal, Tunisia, Zimbabwe, would see substantial increases in intra-African exports of agriculture and food.

COVID impacts
ECA’s research helps understand the impact of COVID-19 on women’s economic activity and trade to inform recovery policies
ECA survey: manufacturing, health/entertainment/utilities, and transport/trade sub-sectors report operating at lowest capacities
Decreases in the global demand for coffee, tea, and flowers are hitting small-hold farmers and large growers with major job losses and impacts on households (Kenya, Uganda, Ethiopia)
Downturns in garments and textiles due to lockdowns and shop closures in the US and EU (Kenya, Ethiopia) also have a knock-on effect on cotton prices for farmers (Benin, Burkina Faso, Mali, Zimbabwe)
Women may be more likely to experience job losses due to employment in vulnerable jobs: low job security and low bargaining power

Role of trade policy in enhancing agricultural competitiveness
Without complementary national and regional policy measures, women may remain segregated in unskilled labour-intensive activities, and the gender wage gap may persist to drive export competitiveness

Mainstream gender considerations in national AfCFTA implementation strategies
Include women’s business associations and gender-related government agencies in consultations
Train women’s organisations on how to leverage benefits of trade agreements & advocate for inclusive trade policies
Encourage women’s participation and gender considerations in decision-making and negotiations
Identify gender dimension of Phase 2 and 3 issues in negotiations

Mainstreaming gender provides a framework for addressing other cross-cutting issues such as age and climate change.

Engage stakeholders in inclusive national AfCFTA implementation
National AfCFTA implementation strategies and implementation committees
Sensitisation and advocacy with women’s business associations
Provide training and capacity building on understanding how to leverage AfCFTA provisions and how to meet standards and certifications
Build linkages between large commercial agro-manufacturers and smaller players to support sharing of knowledge and technologies while ensuring access to markets
Seek opportunities for women’s participation in the production of high-value agricultural commodities and agri-food products for African markets

Connecting family farmers, herders, and fish to markets could create new opportunities for vulnerable groups while stimulating greener practices throughout the food system, and delivering healthier and safer food to consumers

Gender inequalities in trade are contextual

informal economy and on women’s economic activity in Africa
Piloting methodology on developing national capacities for data and statistics that support gender-responsive trade policies.
Measuring contributions to and participation of women in trade, including informal cross-border trade.
Assessing the capacity of RECs to mainstream gender in trade-related policies and support member states to implement gender-sensitive policies.
Knowledge generation, production, and dissemination, partnerships, and training on the gender implications of the AfCFTA.

Gender disaggregated pilot methodology along Lagos-Abidjan corridor, on volume, value and nature of products traded

Agricultural Informal Cross-Border Trade: The Gender Dimension

International Food Policy Research Institute (IFPRI)

Agricultural Informal Cross-Border Trade: The Gender Dimension