UGANDA BUREAU OF STATISTICS THE INFORMAL CROSS BORDER TRADE QUALIT ATIVE BASELINE STUDY 2008 February 2009 FOREWORD The Qualitative Module of the Informal Cross Border Trade (ICBT) Survey is the first comprehensive Study of its kind to be conducted in Uganda to bridge information gaps regarding informal trade environment. The study was carried out at Busia, Mirama Hills, Mpondwe and Mutukula border posts. The ICBT Qualitative study collected information on informal trade environment and the constraints traders’ experience in order to guide policy formulation, planning and decision making in the informal cross border sub-sector. The study focused specifically on gender roles in ICBT, access to financial services, marketing information, food security, and tariff and non-tariff barriers to trade among others. This study was conducted alongside the ICBT Quantitative Module that collected information on the nature of products transacted, their volumes and value, and, the direction of trade. Notwithstanding the significant contribution informal cross border trade has made to the welfare of the people of the East African region (in terms of employment creation, economic empowerment of women, food security, regional and social integration), there are no appropriate policies designed to guide players in the informal trade sector. The information gathered, therefore, will provide an insight into the challenges informal traders face in their day to day business and will guide policy and decision makers to enact appropriate policies to harness the potential benefits of informal cross border trade. The Bureau is grateful to the Integrated Framework (IF) through TRACE Project of the Ministry of Tourism, Trade and Industry for the financial contribution that facilitated the study. Lastly, I thank the technical team, Customs, Immigration, Security, and District Officials of Rakai, Kasese, Busia, and Ntungamo for the cooperation and invaluable input that led to the successful execution of the study. J.B Male-Mukasa EXECUTIVE DIRECTOR ii TABLE OF CONTENT FOREWORD ......................................................................................................................... ii TABLE OF CONTENT…….. .................................................................................................. iii ACRYNOMS ………………………………............................................................v DEFINITIONS .......................................................................................................... vi EXECUTIVE SUMMARY ...................................................................................................... vii CHAPTER ONE: INTRODUCTION ..................................................................................1 1.0 Background .................................................................................................................... 1 1.1 Statement of the problem............................................................................................... 2 1.2 Overall Objective............................................................................................................ 2 1.2.1 Specific objectives.......................................................................................................... 2 1.3 Justification of the Study ................................................................................................ 2 1.4 Geographical Scope....................................................................................................... 3 1.4.1 Busia .............................................................................................................................. 3 1.4.2 Mpondwe,....................................................................................................................... 3 1.4.3 Mirama Hills.................................................................................................................... 4 1.4.4 Mutukula......................................................................................................................... 4 1.5 Funding of the Survey .................................................................................................... 4 1.6 Survey Organization....................................................................................................... 4 CHAPTER TWO: METHODOLOGY ..................................................................................5 2.0 Introduction..................................................................................................................... 5 2.1 Pre-test........................................................................................................................... 5 2.2 Sampling Frame............................................................................................................. 5 2.3 Sample design................................................................................................................ 6 2.4 Data Collection Procedure ............................................................................................. 6 2.4.1 Community entry ............................................................................................................ 6 2.4.2 Administration business household questionnaire......................................................... 7 2.4.3 Focus group discussions................................................................................................ 7 2.4.4 Key informant interviews ................................................................................................ 7 2.4.5 Observation .................................................................................................................... 8 CHAPTER THREE: ICBT PERSPECTIVES .........................................................................9 3.0 Introduction..................................................................................................................... 9 3.1 Characteristics of women and men in ICBT................................................................... 9 3.2 Business house characteristics................................................................................... 10 3.3 Reasons for engaging in ICBT .................................................................................... 11 3.4 ICBT activities ............................................................................................................. 11 3.5 Sources of items transacted in ICBT............................................................................ 12 3.6 Commodities traded in ICBT ........................................................................................ 12 3.7 Mode of payment for ICBT transactions...................................................................... 13 3.8 Organization of ICBT.................................................................................................... 13 3.9 Categories of people engaged in ICBT........................................................................ 13 3.10 Factors facilitating ICBT ............................................................................................... 14 3.11 Beneficiaries of ICBT ................................................................................................... 15 3.12 Constraints experienced in ICBT ................................................................................. 16 3.13 Coping mechanisms adopted in ICBT ......................................................................... 18 3.14 Recommendations proposed by respondents ............................................................. 19 CHAPTER FOUR: ICBT AND LIVELIHOOD .....................................................................22 4.0 Introduction................................................................................................................... 22 4.1 Livelihood activities at border posts ............................................................................. 22 4.2 Contribution of ICBT to livelihood improvement........................................................ 24 4.3 Access to, control and ownership over resources ....................................................... 26 4.4 Conflict over resources ................................................................................................ 26 4.5 Livelihood challenges.................................................................................................. 26 CHAPTER FIVE: FOOD SECURITY ...............................................................................28 5.1 Introduction.................................................................................................................. 28 5.2 Most preferred foods by the business households ..................................................... 29 5.3 Number of meals consumed per day .......................................................................... 29 iii 5.4 Coping strategies during times of food shortage ......................................................... 30 5.5 Causes of food scarcity................................................................................................ 32 5.6 Trends in food availability............................................................................................. 33 5.7 Community members most affected by food insecurity ............................................... 33 CHAPTER SIX: ACCESS TO SOCIAL SERVICES 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