Continental Methodology for ICBT Data Collection in Africa Intra-regional food trade in West Africa: Data, initiatives and policy agenda| 12th - 13th Oct 2023
Laura Naliaka N, ECA
Understanding the scale of ICBT in Africa…
These figures are significant and have important implications for the value, composition & sophistication of intra-African trade, particularly among neighboring states
ICBT is equivalent to 7-16 percent of formal Intra-African trade flows
ICBT is equivalent to 30-72 percent of formal trade between neighboring countries
Source: ECA (2021)
Why we need to monitor ICBT in Africa…
To accurately monitor intra-African trade Official trade statistics often capture only formal trade and leave out informal trade, leading to underestimation of the overall intraAfrican trade.
To improve efficiency of ICBT traders & possible formalization ICBT data is crucial in facilitating policy making and designing programmes that respond to the particular needs and challenges of ICBT traders
For design & implementation of gender-sensitive policies ICBT data is key in understanding the different dynamics at play that could inform the development and implementation of gender sensitive trade policies and processes since majority of ICBT traders are women
Why we need to monitor ICBT in Africa…
It could support financial inclusion of the traders Comprehensive information on the characteristics of informal traders could also help financial institutions develop tailored financial products that respond to their specific needs
For accurate macroeconomic modelling Accurate trade statistics are an important input into national accounts and balance of payments statistics and can help improve econometric forecasting models for key macroeconomic variables
For monitoring progress of key initiatives Malabo declaration advocates for increased intra-regional trade in agricultural trade; ICBT data is critical in generating accurate measurements of household food balance sheets
Why Africa needs a common methodology for ICBT data collection…
Definition
Lack of common ICBT definition Some data collection exercises take place along only gazetted routes, others include unofficial routes; Some include smuggling, others consider it to be illegal trade…
Methodology
Differences in methodologies Some methodologies consider the general trade system for compiling international merchandise trade statistics, whereas others adopt a more ad hoc approach…
Challenges in Comparability of the ICBT data sets
Developing the continental methodology for ICBT data collection in Africa…
Virtual inception meeting of the task force members (8th September 2022)
2nd virtual meeting of the task force members (27th October 2022)
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Review and validation of the methodology (1st June 2023)
1st physical meeting of the task force members (25th to 28th April 2023)
Continental Methodology for ICBT Data Collection in Africa
Informal cross-border trade (ICBT) refers to transactions in goods and services between any two or more countries that are not entered in the official records and therefore not included in the official trade statistics.
Continental Methodology for ICBT Data Collection in Africa
Scope: Limited to trade in goods
The competent authority: Overall coordination & oversee the planning, designing & implementation of ICBT data collection activities
Selection criteria for border posts & loading/off-loading sites to be monitored
Selection criteria for border posts & loading/off-loading sites to be monitored
Existence of supporting govt. institutions
Estimated volume, value & variety of ICBT flows
Availability of necessary infrastructure
Observation time frame
Recommended ❖ Daily data collection of ICBT data
Alternative
Time period
❖ A minimum of 1 week should be chosen using random selection or an appropriate sampling procedure in each of the 12 months
❖ 0700hours to 1800hours
❖ Data for remaining weeks to be estimated
❖ Both starting or ending times may be extended for up to 1 hour, if there are indications of significant ICBT flows
Data collection techniques
Interviews
Direct observation & measurement
ICBT DATA COLLECTION Emerging technology
Stock-taking
Periodic qualitative surveys
Data collection Instruments
Predesigned questionnaires
Field instruction manuals
Weighing scales
List of units of measurement & conversion factors
List of commodity categories
Continental Methodology for ICBT Data Collection in Africa: Recording ICBT transactions
General Trade System
Time of recording: The applicable date of recording the transaction is the day on which goods leave or enter the country
Merchandise included and excluded in ICBT data collection
Merchandise included and excluded in ICBT data collection
Included
Excluded
All merchandise leaving or entering the country that is not recorded by customs authorities.
Goods fully (100 per cent) and properly declared, verified and recorded by customs officials on declaration documents
All merchandise passing through formal crossings that is undeclared or underdeclared in customs declaration documents
Goods in transit.
Goods loaded or unloaded at bus terminals or markets and destined for neighboring countries
Goods allowed for temporary importation: commercial samples, goods transported across borders solely for renovation or repair
Continental Methodology for ICBT Data Collection in Africa: Recording ICBT transactions
Sex-disaggregated data: The sex of the owner of the goods should be recorded during ICBT data collection
Units of measurement: packaging of various goods along with the associated units of measurement to be converted to the HS units of measurement.
Key elements to be included in the questionnaire
Key elements to be included in the questionnaire
Name of the site being monitored
Date of trade
Trade flows: exports + imports
Product name (commercial description of the commodity)
Product description (as per HS codes)
HS codes
Key elements to be included in the questionnaire
Product quantity
Means of transport
Unit of measurement of product
Price per unit of measure
Immediate trading partners (country of exportation + importation)
Value of goods
Key elements to be included in the questionnaire
Currency of recorded transactions
Sex of the owner of the products
Continental Methodology for ICBT Data Collection in Africa: Valuation of ICBT transactions
Informal exports: Are to be valued at free on board (FOB) prices
Informal imports: Are to be valued at cost, insurance and freight (CIF) prices
Currency conversion: To be in line with the IMTS manual
Continental Methodology for ICBT Data Collection in Africa: Data compilation, processing & integration
Estimation of ICBT data for unsurveyed weeks/months: Up-rating models + linear interpolation and extrapolation methods
Data processing & integration: The ICBT data should be in the HS format to enable integrating the ICBT data with formal trade statistics.
Data quality and validation and publication and dissemination
Next steps AU statutory processes for the methodology to be adopted by the AU member states
Piloting of the methodology
Institutionalization of ICBT data collection?
THANK YOU!