The International Trade Centre (ITC) in conjunction
with the Uganda Export Promotion Board (UEPB) is currently implementing a project that seeks to enhance the capacity of Ugandan women informal cross-border
traders (ICBTs) to increase their exports to neighbouring countries by reducing
and eliminating trade facilitation impediments at points of entry and exit.
According to the 2007 Uganda Bureau of Statistics Informal
Cross-Border Trade Survey, Uganda’s informal trade with her neighbours was
estimated at just under US$777 million, which was 58% of the country’s formal
sector exports for the same year. The growth in informal cross border exports represents
an increase of 236% on the US$ 231
million export values recorded in 2006. The majority of the Uganda’s informal
cross-border traders are women, who sell their merchandise to neighbouring
Sudan, Rwanda, Kenya, Democratic Republic of Congo and Tanzania.
Despite the impressive contribution and potential for growth of the
informal cross-border sector, women informal cross-border traders experience a
number of challenges in doing business. These include the absence of clear
government policies for the development of the informal sector, lack of knowledge
on formal cross border procedures and processes, lack of access to finance,
lack of entrepreneurial skills, lack of marketing skills, shortage of business
premises, complex government laws and regulations, lack of access to automation,
low literacy levels, undue delays at border posts, and harassment by border
agencies. These challenges are particularly severe for women ICBTs relative to their
SME exporting counterparts in the formal sector.
The project seeks to address these challenges through a three-pronged
approach: the simplification of cross border procedures
and processes for ICBTs; capacity building of women ICBTs and trade
facilitation/ border agencies and; establishment of strong networks with key
trade and development stakeholders, including TSIs.
The project is expected to produce several outputs: a trade facilitation regime for Ugandan women informal cross border
traders; a one stop window/fast track clearance system for ICBTs
at four of Uganda’s key borders; a customs integrity action plan for women
ICBTS drafted and accepted by Uganda Revenue Authority and key trade
facilitation agencies; women ICBT trade capacity hubs launched at
four Ugandan borders ; capacity building modules and technical support
guidelines developed and approved by the ICBTs; the establishment of a Uganda ICBT Trade Facilitation Association;
and the publication of a best practice guide
on developing and implementing trade facilitation
measures for women ICBTs.
Although this project does
not have a specific objective to encourage women ICBTs to transition to the
formal export sector, it is hoped that through capacity building,
training on export
opportunities, exposure to trade facilitation practices and linkages to national trade networks and resources, more women ICBTs
will be encouraged to formalise their businesses and eventually grow to become SME exporters.