{
  "title": "COMESA: Cross Border Initiative",
  "sourceUrl": "https://www.imf.org/en/data/statistics/informal-economy-data/reports/comesa-cross-border-initiative",
  "canonical": "https://www.imf.org/en/data/statistics/informal-economy-data/reports/comesa-cross-border-initiative",
  "overlayPath": "/en/data/statistics/informal-economy-data/reports/comesa-cross-border-initiative/index.md",
  "summary": "Small scale cross-border trade can be defined as a form of trade that this unrecorded in official statistics and is carried out by small businesses across borders of neighboring countries.",
  "sections": [
    {
      "heading": "Introduction",
      "content": "- Small scale cross-border trade (SSCBT) is defined as trade unrecorded in official statistics carried out by small businesses across borders of neighboring countries.\n- Typical SSCBT behaviors include bypassing border posts, concealment of goods, under-declaration, wrong classification, under-invoicing and other concealment methods.\n- Motivations include evading taxes or fees and avoiding administrative formalities in health, agriculture, security and immigration perceived as costly, complex and time consuming.\n- Properly harnessed, SSCBT can have positive macro-economic and social implications and can play a critical role in poverty alleviation and regional food security.\n- COMESA estimates:\n  - Uganda small scale cross border trade was worth US$549 million in 2017.\n  - Rwanda small scale cross border trade was worth US$103 million in 2017.\n- Anecdotal evidence from borders such as Kasumbalesa (Zambia-DRC) indicates high volumes of people and goods that qualify as SSCBT; aggregate COMESA flows could run in billions across Member states."
    },
    {
      "heading": "Programs and Geographic Focus",
      "content": "- Two COMESA SSCBT programs:\n  - Great Lakes Project: focuses on Uganda, Rwanda and DRC; builds capacity in DRC using existing Uganda and Rwanda efforts. Borders covered: Mahagi/Goli (DRC – Mahagi, Uganda – Goli), Kasindi/Mpondwe (DRC – Kasindi, Uganda – Mpondwe), Bunagana/Bunagana (DRC- Bunagana, Uganda – Bunagana), Goma/Rubavu (DRC – Goma (PB), Rwanda – Rubavu) and Bukavu/RUSIZI-1 (DRC – Bukavu, Rwanda- Rusizi-1).\n  - COMESA Cross Border Trade (CBT) Initiative: aims to increase SSCBT flows in the COMESA/Tripartite region through policy and government reforms, institutional capacity building, improved border infrastructure and better data collection and monitoring. Initial border posts: Mwami/Mchinji (Zambia–Malawi); Kasumbalesa (Zambia–DRC); Chirundu (Zambia–Zimbabwe); Tunduma/Nakonde (Zambia–Tanzania); Moyale (Kenya–Ethiopia).\n- Note: The Tripartite region is a conglomeration of COMESA, SADC and EAC countries."
    },
    {
      "heading": "Scope",
      "content": "- New COMESA-led SSCBT statistical data collection will involve both merchandise trade and services trade.\n- Data collection will be augmented by existing Uganda and Rwanda surveys guided largely by the EAC Manual (EAC, 2014).\n- It is envisaged that by end of 2019 nine countries will be engaged in some SSCBT data collection."
    },
    {
      "heading": "Methodology",
      "content": "- Methodology will follow aspects of recommendations related to formal trade such as the general trade system and valuation methods.\n- New surveys will adopt a combination of:\n  - full one-month collection, and/or\n  - two consecutive weeks collection (from which a monthly estimate will be obtained).\n- The COMESA SSCBT Manual guides the overall data collection process under the CBT Initiative (COMESA, 2018b).\n- The COMESA minimum data requirements include variables capturing merchandise trade and services trade incidental to SSCBT.\n- The program will support tablet-based data collection tools."
    },
    {
      "heading": "Compilation Issues",
      "content": "- COMESA Secretariat provided technical assistance to integrate Uganda and Rwanda SSCBT datasets into the EUROTRACE system used for formal trade to ensure completeness and comparability among reporting countries.\n- SSCBT data will be based on the harmonized system classification.\n- Integration efforts will be extended to other countries under the CBT Initiative.\n- The COMESA data portal, COMSTAT (http://comstat.comesa.int/), will be the premier vehicle for dissemination of SSCBT statistics."
    },
    {
      "heading": "Data Sources",
      "content": "- National statistical offices of Rwanda, Uganda, Zambia, Malawi, Kenya, Ethiopia, Zimbabwe and the DRC will serve as data sources."
    },
    {
      "heading": "Current Challenges",
      "content": "- Program is in initial stage of setting up and consolidating SSCBT collection.\n- Key challenges from existing Rwanda and Uganda efforts:\n  - Lack of harmonization on the minimum data variables.\n  - Uganda SSCBT data does not capture the gender of traders.\n  - Neither Rwanda nor Uganda capture any potential services trade among cross border traders."
    },
    {
      "heading": "Key Conclusions and Way Forward",
      "content": "- Need to harmonize current collection to include all COMESA minimum data variables; harmonization will be done on a gradual basis.\n- Once SSCBT data collection gains traction, expansion to other country borders under the CBT Initiative is envisaged.\n- Ensure cost effective collection under the CBT Initiative to secure sustainability and incorporation into existing country statistical activities."
    },
    {
      "heading": "COMESA Minimum Data Requirements (column listing)",
      "content": "- 1. Date\n- 2. Form/Serial Number\n- 3. Enumerator\n- 4. Border Post\n- 5. Sex of Trader\n- 6. Product (Name/Code)\n- 7. Quantity\n- 8. Unit (Code)\n- 9. Value\n- 10. Origin\n- 11. Destination\n- 12. Mode of Transport\n- 13. Transport Nationality\n- 14. Nationality/Residence of Trader\n- 15. Transport Costs\n- 16. Accommodation Costs\n- 17. Storage Costs"
    }
  ],
  "bullets": [
    "Small scale cross-border trade (SSCBT) is defined as trade unrecorded in official statistics carried out by small businesses across borders of neighboring countries.",
    "Typical SSCBT behaviors include bypassing border posts, concealment of goods, under-declaration, wrong classification, under-invoicing and other concealment methods.",
    "Motivations include evading taxes or fees and avoiding administrative formalities in health, agriculture, security and immigration perceived as costly, complex and time consuming.",
    "Properly harnessed, SSCBT can have positive macro-economic and social implications and can play a critical role in poverty alleviation and regional food security.",
    "COMESA estimates:",
    "Anecdotal evidence from borders such as Kasumbalesa (Zambia-DRC) indicates high volumes of people and goods that qualify as SSCBT; aggregate COMESA flows could run in billions across Member states.",
    "Two COMESA SSCBT programs:",
    "Note: The Tripartite region is a conglomeration of COMESA, SADC and EAC countries.",
    "New COMESA-led SSCBT statistical data collection will involve both merchandise trade and services trade.",
    "Data collection will be augmented by existing Uganda and Rwanda surveys guided largely by the EAC Manual (EAC, 2014).",
    "It is envisaged that by end of 2019 nine countries will be engaged in some SSCBT data collection.",
    "Methodology will follow aspects of recommendations related to formal trade such as the general trade system and valuation methods.",
    "New surveys will adopt a combination of:",
    "The COMESA SSCBT Manual guides the overall data collection process under the CBT Initiative (COMESA, 2018b).",
    "The COMESA minimum data requirements include variables capturing merchandise trade and services trade incidental to SSCBT.",
    "The program will support tablet-based data collection tools.",
    "COMESA Secretariat provided technical assistance to integrate Uganda and Rwanda SSCBT datasets into the EUROTRACE system used for formal trade to ensure completeness and comparability among reporting countries.",
    "SSCBT data will be based on the harmonized system classification.",
    "Integration efforts will be extended to other countries under the CBT Initiative.",
    "The COMESA data portal, COMSTAT (http://comstat.comesa.int/), will be the premier vehicle for dissemination of SSCBT statistics.",
    "National statistical offices of Rwanda, Uganda, Zambia, Malawi, Kenya, Ethiopia, Zimbabwe and the DRC will serve as data sources.",
    "Program is in initial stage of setting up and consolidating SSCBT collection.",
    "Key challenges from existing Rwanda and Uganda efforts:",
    "Need to harmonize current collection to include all COMESA minimum data variables; harmonization will be done on a gradual basis.",
    "Once SSCBT data collection gains traction, expansion to other country borders under the CBT Initiative is envisaged.",
    "Ensure cost effective collection under the CBT Initiative to secure sustainability and incorporation into existing country statistical activities.",
    "1. Date",
    "2. Form/Serial Number",
    "3. Enumerator",
    "4. Border Post",
    "5. Sex of Trader",
    "6. Product (Name/Code)",
    "7. Quantity",
    "8. Unit (Code)",
    "9. Value",
    "10. Origin",
    "11. Destination",
    "12. Mode of Transport",
    "13. Transport Nationality",
    "14. Nationality/Residence of Trader",
    "15. Transport Costs",
    "16. Accommodation Costs",
    "17. Storage Costs"
  ],
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  "generatedAtUtc": "2026-10-02T02:53:41.243Z"
}