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Walking in the Dark: informal Cross-border trade ... - International Alert

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<strong>Walk<strong>in</strong>g</strong> <strong>in</strong> <strong>the</strong> <strong>Dark</strong>: Informal <strong>Cross</strong>-<strong>border</strong> Trade <strong>in</strong> <strong>the</strong> Great Lakes Region<br />

3<br />

Contents<br />

Executive Summary 4<br />

1. Introduction 7<br />

1.1 Context, rationale and objectives 7<br />

1.2 Methodology 9<br />

2. Profile of small <strong>trade</strong>rs 14<br />

2.1 Education 14<br />

2.2 The role of men and women 14<br />

2.3 Age of small <strong>trade</strong>rs 15<br />

2.4 Nationality of small <strong>trade</strong>rs 16<br />

2.5 Civil status and household responsibilities 16<br />

2.6 Associations 17<br />

3. Analysis of small cross-<strong>border</strong> <strong>trade</strong> 18<br />

3.1 Relative importance of small <strong>trade</strong> as a means of subsistence 18<br />

3.2 Trade flows 20<br />

4. Traders’ capital 22<br />

4.1 Sources of capital 22<br />

4.2 Start-up capital 22<br />

4.3 Estimated profits of small cross-<strong>border</strong> <strong>trade</strong> 23<br />

5. Taxation 25<br />

5.1 Organisations for regional <strong>in</strong>tegration 26<br />

5.2 Congolese taxes 27<br />

5.3 Burundian taxes 31<br />

5.4 Rwandan taxes 32<br />

5.5 Ugandan taxes 33<br />

6. Difficulties experienced by small <strong>trade</strong>rs 34<br />

6.1 General difficulties 34<br />

6.2 Difficulties experienced by women 34<br />

6.3 Relations between small <strong>trade</strong>rs from <strong>the</strong> different countries 36<br />

7. Informality: <strong>the</strong> “devil’s deal” 39<br />

8. Conclusion and recommendations 42<br />

8.1 Recommendations for governments <strong>in</strong> <strong>the</strong> region 43<br />

8.2 Recommendations for external actors 45<br />

8.3 Recommendations for regional economic <strong>in</strong>stitutions 46<br />

Bibliography 48

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