An investigation into informal cross-border trading at the Rundu-Calai urban bridgehead
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Date
2020
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Publisher
University of Namibia
Abstract
This study was conducted at Sarusungu Border Post, a socio-economic conduit at Rundu-Calai Bridgehead in Kavango East Region. The research investigated Informal Cross Border trade patterns, pro-poor benefits and hindrances of Informal Cross Border Trade (ICBT). The investigation used a qualitative approach in form of semi-structured interviews and field observation. The study had a sample of 55 participants consisting of informal traders, money exchangers, border officials and key informants from Rundu and Calai. Findings reveal that 71% of the traders are youth with 61% of them responding that they have been attracted by more buying power in Rundu and devaluation of Kwanzas leading to cheaper goods in Calai. Most (53%) traders exchange vegetables, corn and re-exports such as sugar and rice. It emerges that up to 85% of informal trading occurs in the street (38%), open markets (26%) and home-based stalls (21%). The unemployment rate in Rundu and vicinity as well as customs’ charges waiver on primary goods and household re-exports motivates trading. Benefits of ICBT include income to pay for children’s education, household amenities and reinvestments or expansion of residences. Hindrances of ICBT are ranging from distance to the Border to competition with formal traders. The research concludes that pro-poor ICBT activities are carried out at the Rundu-Calai Bridgehead and recommends that the Border Post return to the old site linking Rundu and Calai’s CBD to curb transport costs for traders.
Description
A thesis submitted in partial fulfillment of the requirements for the Degree of Master of Arts in Geography
Keywords
Cross-border trading, socio-economic activities, Forex in microcosm