Informal cross-border trade plays a significant role in regional integration efforts within ECOWAS (Economic Community of West African States), particularly in regions with limited formal economic opportunities. The analysis employs qualitative research methods to explore perceptions and practices of traders across borders, supplemented with secondary data from government reports and academic literature. Ugandan traders engaged in informal cross-border trade reported facilitating over 40% of total regional commerce, highlighting the substantial role such activities play despite regulatory barriers. The analysis underscores the potential for formalizing these informal practices to enhance regional integration while addressing existing regulatory hurdles. Policy recommendations include developing targeted regulations that facilitate rather than hinder cross-border trade and promoting capacity-building programmes among traders.
Kizza et al. (Thu,) studied this question.