Informal cross-border trade plays a significant role in many African economies but contributes to a narrow tax base and unequal tax burdens. This paper explores the importance of formalizing Informal Cross-Border Trade (ICBT) to enhance revenue collection and enable greater public investment in critical sectors. It focuses on the Simplified Trade Regime (STR), a key policy initiative adopted by COMESA, EAC, and SADC, which aims to reduce trade barriers for small-scale traders and promote formalization by simplifying procedures and lowering compliance costs.
Disclaimer: The views expressed in this paper are entirely those of the author and they do not necessarily represent the view of the World Bank or any other organization associated with the Horn of Africa Initiative (HoAI).
About the author: Danilo Desiderio is an expert in customs, trade, and transport policy and regulation, leveraging two decades of legal specialization in international trade law and a particular experience. A former consultant at the Italian Ministry of Trade and at the Italian Cabinet of Ministers (Department for EU Policies), Danilo established in 2019 Desiderio Consultants Ltd. in Nairobi (Kenya), spearheading critical customs and trade reforms across Africa. His research informs policy as a Senior Associate at the Horn Economic and Social Policy Institute (HESPI)., Danilo also serves as Senior Customs and Trade Specialist at the World Bank.
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