Informal cross-border trade plays a significant role in regional integration efforts within ECOWAS (Economic Community of West African States). Seychelles, as an island nation with limited land borders and extensive maritime trade routes, serves as a case study to explore the dynamics of informal trade and its impact on regional economic cohesion. A structured questionnaire was administered to a sample of traders and business entities engaged in informal cross-border activities across Seychelles. Data collection took place through online surveys and semi-structured interviews, with a response rate of 75% among the targeted respondents. The findings indicate that informal trade contributes significantly (46%) to total exports for Seychelles within ECOWAS, highlighting its substantial economic importance despite regulatory challenges. Key actors include local traders, small and medium enterprises, and foreign-owned businesses operating through unofficial channels. This study underscores the necessity of integrating informal cross-border trade into regional integration strategies in ECOWAS to enhance overall economic performance and compliance with established regulations. Recommendations for policymakers include developing a comprehensive regulatory framework that recognizes the legitimacy of informal trade while ensuring fair competition, enhancing communication channels between border authorities, and providing support services for traders operating across borders.
Nguinji et al. (Fri,) studied this question.
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