The contribution of informal cross-border trade to a successful African Continental Free Trade Area

Kedir, AM, Siwale, J ORCID logoORCID: https://orcid.org/0000-0002-6315-0896 and Kamara, S, 2025. The contribution of informal cross-border trade to a successful African Continental Free Trade Area. AIB Insights. ISSN 1938-9590

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Abstract

This article analyses the vital role of informal cross-border trade (ICBT) in Africa, particularly its contribution to intra-African trade, entrepreneurship, job creation—especially among women and youth—and the broader economic landscape. Despite its substantial economic impact, ICBT is often excluded from official trade statistics, leading to inaccurate assessments of Africa’s trade dynamics and the measurement of government revenue foregone. The article links ICBT to the African Continental Free Trade Area (AfCFTA), which, in turn, can lead to links to national and regional economic development plans as the implementation of AfCFTA unfolds. Our paper also explores the challenges of capturing ICBT data and offers practical recommendations for improving data collection, trade policy, international business teaching, and research. It calls for international business scholars and students to integrate ICBT into their analyses to support more accurate trade measurement, understand the value and volume of intra-African trade, and advance inclusive economic development across the continent.

Item Type: Journal article
Publication Title: AIB Insights
Creators: Kedir, A.M., Siwale, J. and Kamara, S.
Publisher: Academy of International Business
Date: 27 October 2025
ISSN: 1938-9590
Identifiers:
Number
Type
10.46697/001c.146139
DOI
2521043
Other
Rights: This is an open-access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CCBY-4.0). View this license’s legal deed and legal code for more information.
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 04 Nov 2025 11:14
Last Modified: 04 Nov 2025 11:14
URI: https://irep.ntu.ac.uk/id/eprint/54667

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