## COMESA: Cross Border Initiative

## Source details

**Canonical URL:** [COMESA: Cross Border Initiative](https://www.imf.org/en/data/statistics/informal-economy-data/reports/comesa-cross-border-initiative)

## Other formats

- [Markdown version](/en/data/statistics/informal-economy-data/reports/comesa-cross-border-initiative/index.md)
- [Structured JSON version](/en/data/statistics/informal-economy-data/reports/comesa-cross-border-initiative/index.json)
- [Bundle manifest](/en/data/statistics/informal-economy-data/reports/comesa-cross-border-initiative/bundle-manifest.json)

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### Introduction
- 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:
  - Uganda small scale cross border trade was worth US$549 million in 2017.
  - Rwanda small scale cross border trade was worth US$103 million in 2017.
- 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.

### Programs and Geographic Focus
- Two COMESA SSCBT programs:
  - 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).
  - 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).
- Note: The Tripartite region is a conglomeration of COMESA, SADC and EAC countries.

### Scope
- 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
- 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:
  - full one-month collection, and/or
  - two consecutive weeks collection (from which a monthly estimate will be obtained).
- 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.

### Compilation Issues
- 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.

### Data Sources
- National statistical offices of Rwanda, Uganda, Zambia, Malawi, Kenya, Ethiopia, Zimbabwe and the DRC will serve as data sources.

### Current Challenges
- Program is in initial stage of setting up and consolidating SSCBT collection.
- Key challenges from existing Rwanda and Uganda efforts:
  - Lack of harmonization on the minimum data variables.
  - Uganda SSCBT data does not capture the gender of traders.
  - Neither Rwanda nor Uganda capture any potential services trade among cross border traders.

### Key Conclusions and Way Forward
- 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.

### COMESA Minimum Data Requirements (column listing)
- 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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## References

- [Informal Economy Reports](https://www.imf.org/en/data/statistics/informal-economy-data/reports)

_Source: https://www.imf.org/en/data/statistics/informal-economy-data/reports/comesa-cross-border-initiative_