Journal of Scientific and Innovative Research 2018; 7(2): 36-42 Available online at: www.jsirjournal.com Review Article A Review on Cross-Border Livestock Trade Across ISSN 2320-4818 Dry Land Borders of Ethiopia: The Trends and JSIR 2018; 7(2): 36-42 © 2017, All rights reserved Implications Received: 24-04-2018 Accepted: 11-09-2018 Angassa Tesfaye, Negassi Amaha Angassa Tesfaye Abstract Department of Animal Sciences, Haramaya University, Haramaya, Ethiopia This review paper is aimed at, reviewing trade routes and border marketing centers, trends and implications of cross-border livestock trade (CBLT) along borderlands of Ethiopia. Traded across different corridors of Negassi Amaha borderland, Ethiopia’s CBLT were traditionally, destined to middle east countries, were the Eastern trade Department of Animal Sciences, Haramaya University, Haramaya, corridor with Somalia involves massive border crossing livestock trade and stand first in terms of traded Ethiopia volume and values. Nonetheless, a significant proportion of CBLT along Sudan, Kenya and Djibouti corridors were also carried out across northwestern, southern and northeastern parts of the country respectively. Livestock sector in Ethiopia, supporting more than 65% of the population and contributes more than 12–15% of total export earnings of the country. However, in recent year, the evidences show that, the trends of official livestock export were declining while, informal export is exponentially increasing. The role of CBLT, on the livelihoods of herders and economy of the country were loomed in the forms of its short- or long-term impacts. In short term, it improves the livelihoods of herders and/or traders through; assisting food security in supplying foods item to the food deficit areas, raising incomes to herders/traders through selling their animals at border crossing/international markets and creates employment opportunity for traders, trekkers or brokers. Whereas, in long term impacts, CBLT have significantly, damaged the economy of our country in several ways. Consequently, Ethiopia have been losing its multi-millions (ETB) of taxes revenue from trade and the devised irrelevant policies and strategies due to the missed livestock trade data (informal) from national statistics led to undermining of sector’s economic contributions. In conclusion, any intervention(s) to the CBLT in Ethiopia virtually, requires valuation of its long- and short-term implications to the livelihoods of herders and economies of the country. Keywords: Cross border livestock trade, Ethiopia, Trends and Implications. INTRODUCTION In general, East African countries and Ethiopia in particular have a immense history of cross-border [1] trade; which represents a significant proportion of economic transaction . Ethiopia, is the country with a total surface area of 1.1 million square kilometers bordered with several East Africa countries, such as Kenya, Somalia, Djibouti, Sudan, South Sudan and Eritrea, and it has a varied levels of Cross Border Trade (CBT) with them; along its borderlands. CBT, which is carried out across the national boundaries or between people or business entities is therefore defined as: “the flow of goods and services across international border lands within a reach of distances.” It is therefore, broadly categorized into: - (1st) formal (official) cross border trade (FCBT) which refers to the type of international trade in legal goods and services which is carried out by legally registered traders that fulfills all the legal requirements of the trading countries [2]. In the other hand, (2nd) informal (unofficial) cross border trade (ICBT), was, however, defined [3] differently by different authors and institutions. For instance, COMESA define, ICBT as illegal and unregulated (unregistered, undocumented or officially unaccounted) trade and consequently, criminalizes the traders and their economic activities. Additionally, Lesser and Moisé-Leeman [4] describe ICBT as Correspondence: the activities involving a legitimately produced goods and services, which escape government regulatory Angassa Tesfaye Department of Animal Sciences, framework, thereby avoiding certain tax and regulatory procedures, hence fully or partially evade duty Haramaya University, Haramaya, payment and charges. Such trade includes those which passes through unofficial routes and avoid Ethiopia customs, and/or passes through official routes; with border crossing points and customs 36 offices yet conduct unlawful practices. In this case, Victor [1], thus, 2. The trends, trade routes and markets of CBLT pointed out that, unfair competition from ICBT players may have a long-run effect of weakening competition and as such may hinder the Ethiopia is the major player of livestock trans-border trade in the horn further activities of formal firms from entering or expanding in of Africa. The trend of CBT in the country, though generally increasing marketing. In addition, the incentives to innovate and invest could be over time, has shown significant volume fluctuations and change of significantly reduced in an informal trading environment; a situation patterns. Though, there is no reliable information regarding the extents where effective intellectual property recognition is absent. of cross border livestock flows between Ethiopia and its neighboring countries; according to Habtamu et al., [2], the value of Ethiopia’s, CBT In contrary, Little [5] argued that ICBT is "a normal market response to by ETB from 1998-2014 has reached 61.07 billion, of which 15.6 cumbersome, time consuming export regulations and regional price billion was contributed by live livestock trade with Kenya, Somalia and distortions, and should be encouraged as a means to increase intra- Djibouti (Figure 1) [2]. Furthermore, livestock is also an important regional trade, meet local demand that is not being met by national contributor to export earnings (live animal exports), covering nearly production and domestic markets, and insures regional food security". about 8% (USD 211 million) of the USD 2.75 billion export earning has The populace breaks state laws and regulations’ in order to survive in achieved in 2011, which was at USD 40 million in 2008 [16]. Teka, et. the light of the state’s incapability to meet the basic needs of the al., [17] also reported, an estimate of 35,000-50,000 cattle, more than impoverished masses has rejected and unaccepted, among local 100, 000 of sheep and goats, and about 10,000 camels being sold to communities [6]. Thus, some advices, when comprehending the benefits inside and/or outside border markets of Ethiopia. or harm of ICBT, the legislature and/or policy makers should consider whether to focus on short-term or long-term impacts of ICBT [1]. In general, the regional cross-border trading networks, supports about 17-million peoples in the horn of Africa (HoA), including livestock producers and traders, trekkers, fodder traders, brokers and middlemen; who directly or indirectly derive their entitlements from livestock production and trade [7, 8]. In particular, however, the value of Ethiopia, CBT by ETB from 1998-2014 has reached over an estimate of 61.07 billion, of which live livestock trade contributes about 25.56 per cent (15.6 billion birr) traded across Kenyan, Somalian and Djibouti borderlands [9]. More explicitly, the studies were revealed that, the annual value of Cross Border Livestock Trade (CBLT) with Ethiopia [10] [11] [10] has estimated approximately at US$25 , US$9.00 , US$16 and Fig 1: Formal export of Ethiopia to Djibouti, Somalia and Kenya [12] US$10.5 millions with Somalia, Kenya, Sudan and Puntland Explicitly, other research finding, indicates that the official intra- respectively. regional livestock export trade with the neighboring countries such as Somali, Sudan and Djibouti were showing an increasing trend between Further, Ethiopia, having huge livestock resource, is playing a 2010/11 and 2011/12 (see table 1). significant role to CBLT in the region; traded throughout its several border crossing routes. The cross-border trade is sustained through Table 1: Official intra-regional exports [18] intricate social networks that cross geo-political boundaries, whereby the interior rangelands are enter-connected with ports through a series of Country 2010/11 2011/12 [13] clan-based corridors . Coincidentally, most of the cross-border lands Djibouti 21,755 116,689 of Ethiopia, are characterized by arid pastoral and semi-arid agro- Somalia 110,043 149,308 pastoral ecologies, were livestock plays a dominant role in the Sudan 103,133 153,175 livelihoods of the society [14]; creating a conducive environment for trance-border livestock trade. The major type of livestock traded across In the other hand, based on available date, excluding camel, an estimate border lands of Ethiopia includes; camel, cattle, goats and sheep. of 1,500,450 (cattle) and, 5,688,200 (sheep and goats) were illegally According to COMESA [12], cross-border livestock trade in Ethiopia, is exported to different neighboring countries from the year 1981/82 up to practiced in several trade corridors such as; eastern, southern, western 2001 causing the country to lose significant proportions of revenue from and northwestern borders of the country. Further, the cross-border the sector (see table 2). Although, informal trade is difficult to quantify, livestock trade across Ethiopia borderlands are categorized into: eastern a recent finding indicated that, the value of the informal livestock trade Ethiopia vs Somaliland, southeastern