世界发展银行-Eight-Emerging-Effects-of-the-COVID-19-Pandemic-on-Small-Scale-Cross-Border-Trade-in-the-Great-Lakes-Region_9页_3mb

Summary of the Effects of the COVID-19 Pandemic on Small-Scale Cross-Border Trade in the Great Lakes Region

Core Content

The Great Lakes Region (GLR), comprising countries such as the Democratic Republic of Congo (DRC), Rwanda, Uganda, and others, has experienced significant impacts on small-scale cross-border trade (SSCBT) due to the COVID-19 pandemic. This note outlines eight emerging effects of the pandemic on SSCBT, based on evidence from the World Bank's Great Lakes Trade Facilitation Project (GLTFP).

Main Effects of the Pandemic on SSCBT

1. Decreased Value of Goods Traded through Core Trade Infrastructure

• In June 2018, the value of goods traded through core infrastructure between DRC and Uganda was US$218.10 million.
• By October 2020, this value had dropped by over 50% to US$146.49 million, compared to US$275.88 million in October 2019.
• All three targeted borders (Kasindi/Mpondwe, Bunagana, Mahagi/Goli) saw a significant decline in traded goods.

2. Increased Average Time to Cross Borders

• The average time to cross borders increased due to new pandemic-related procedures.
• For Kasindi/Mpondwe, the time nearly tripled in October 2020 compared to the January–February 2020 period.
• For Bunagana, the time more than doubled in the same period.

3. Decline in Daily Average Number of Small-Scale Traders

• The daily average number of traders processed at borders like Mahagi/Goli and Kasindi/Mpondwe dropped from 376 and 1,268 in January–February 2020 to 19 and 28 in June 2020, respectively.

4. Shift to Noncontrolled Crossing Points

• Restrictions on border movement have led traders to use "no man's land" (noncontrolled crossing points).
• This shift increases the risk of virus spread and reduces the efficiency of trade.

5. Increased Cost of Trading

• The jeton (a free day pass) has been replaced with laissez passer, which costs US$10.00 for DRC-Rwanda traders and US$5.00 for DRC-Uganda traders.
• Additional US$50.00 visa fees and mandatory COVID-19 tests have also increased trade costs.

6. Lack of Proper Testing Centers at DRC Borders

• DRC-based traders face challenges due to the lack of testing facilities at their borders.
• They often have to travel to the other side for testing, increasing both time and cost.

7. Limited Monitoring and Evaluation Tools

• The absence of data collectors on the ground has made it difficult to monitor and evaluate the impact of policies and the pandemic.
• A need has emerged for robust, innovative monitoring mechanisms to collect data remotely.

8. Trading in Clusters

• Countries have adopted "trading in clusters" to reduce cross-border movement and minimize virus spread.
• Women make up the majority of traders in cluster-based trade.
• This approach is being considered as a long-term solution to support small-scale trade and promote trade associations.

Key Recommendations

• Support policies for cluster trade and e-commerce to reduce costs and enhance safety.
• Strengthen policies for women traders, including gender-segregated infrastructure and anti-harassment measures.
• Adopt innovative border management techniques, such as digital technologies and pre-registration systems, to reduce human contact and improve data collection.
• Establish test centers at border posts using tents or containers to improve access and reduce time and cost for traders.

These findings highlight the vulnerability of small-scale cross-border trade in the Great Lakes Region to pandemic disruptions and emphasize the need for adaptive and inclusive policies to safeguard this critical economic activity.