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The Contribution of Informal Cross-Border Trade to a Successful African Continental Free Trade Area

Year: 2025

Type: article

Abstract: This article analyses the vital role of informal cross-border trade (ICBT) in Africa, particularly its contribution to intra-African trade, entrepreneurship, job creation—especially among women and youth—and the broader economic landscape. Despite its substantial economic impact, ICBT is often excluded from official trade statistics, leading to inaccurate assessments of Africa’s trade dynamics and the measurement of government revenue foregone. The article links ICBT to the African Continental Free Trade Area (AfCFTA), which, in turn, can lead to links to national and regional economic development plans as the implementation of AfCFTA unfolds. Our paper also explores the challenges of capturing ICBT data and offers practical recommendations for improving data collection, trade policy, international business teaching, and research. It calls for international business scholars and students to integrate ICBT into their analyses to support more accurate trade measurement, understand the value and volume of intra-African trade, and advance inclusive economic development across the continent.

Source: AIB Insights

DOI: 10.46697/001c.146139

Authors: Abbi M. Kedir, Juliana Siwale, Samppa Kamara

Institutions: African Economic Research Consortium, Nottingham Trent University, University of Sheffield, University of Oulu

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: diamond

Funders: African Union, African Union Commission