The media reports indicate significance attached to the recently signed Memorandum Understanding (MoU) between Ethiopia and Kenya on facilitation of cross border trade relations. The significance of the agreement emanates from the expected benefits it would have to the cross-border communities of the two countries. It would benefit the communities’ access basic daily commodities without undue restrictions or supply disruptions.
The formal cross-border trade agreement basically crosses the Moyale border setting a trade ceiling of USD 1,000.00 (one thousand) under the framework of the African Continental Free Trade Area (AfCFTA). It was made clear that the traders, among the local communities, would be allowed to manage the trading four times per month pertaining to the agreed list of goods. There is limit to areas of the trade zone in which the transaction takes place, which extends 50 kilometers into Ethiopia and 100 kilometers into Kenya from the Moyale border town.
The CDG in partnership with VSO Ethiopia, VSO Kenya and HODI from Kenya implemented a project known as “Integrating Peace Building Development and Humanitarian Efforts/IPDHE” for two years which largely focused on doing assessment on the cross – border issues. Among these were the hurdles to manage movement of goods including trade, illicit drugs and human trafficking all of which demand pertinent legal control. On the basis of these major points, the CDG conducted assessments to identify whether the legal codes exist or not; if they existed to identify whether there were gaps in the implementation; and then present the assessment findings to the stakeholders for their recommendations.
The formal cross-border trade agreement basically crosses the Moyale border setting a trade ceiling of USD 1,000.00 (one thousand) under the framework of the African Continental Free Trade Area (AfCFTA). It was made clear that the traders, among the local communities, would be allowed to manage the trading four times per month pertaining to the agreed list of goods. There is limit to areas of the trade zone in which the transaction takes place, which extends 50 kilometers into Ethiopia and 100 kilometers into Kenya from the Moyale border town.
The CDG in partnership with VSO Ethiopia, VSO Kenya and HODI from Kenya implemented a project known as “Integrating Peace Building Development and Humanitarian Efforts/IPDHE” for two years which largely focused on doing assessment on the cross – border issues. Among these were the hurdles to manage movement of goods including trade, illicit drugs and human trafficking all of which demand pertinent legal control. On the basis of these major points, the CDG conducted assessments to identify whether the legal codes exist or not; if they existed to identify whether there were gaps in the implementation; and then present the assessment findings to the stakeholders for their recommendations.
The assessment was fully done at the grassroots community to get firsthand information from the concerned since it affects their daily lives. Accordingly, CDG staff members and locally selected members of the community carried out the assessment largely meeting research requirements. Data were collected from several localities applying standard methodology seriously considering the samples to be representative. The collected data were then validated at District and Zone levels with participation of experts and officials of varying responsibilities. They analyzed the findings posing questions, giving opinions and holding discussions whereby they verified the findings.
In connection to movement of goods or trading, one major challenge was mechanisms to control contraband in which multiple checkpoints were set up creating difficulty even to know their legal status. The communities living on both sides of the border complained that the practice of widespread illegal trade/contraband was highly affecting the peace and security around the contraband routes. They complained the illegal trade affected their livelihoods in that even they didn’t have guarantee to their own belongings. The security guards on occasions of searching for contrabandists, used to takeover properties of residents on suspicion of sheltering the contrabandists and involvement in contraband trading.
In connection to movement of goods or trading, one major challenge was mechanisms to control contraband in which multiple checkpoints were set up creating difficulty even to know their legal status. The communities living on both sides of the border complained that the practice of widespread illegal trade/contraband was highly affecting the peace and security around the contraband routes. They complained the illegal trade affected their livelihoods in that even they didn’t have guarantee to their own belongings. The security guards on occasions of searching for contrabandists, used to takeover properties of residents on suspicion of sheltering the contrabandists and involvement in contraband trading.
Members of the communities further explained that the used clothes they bought for themselves and their children were sometimes confiscated on suspicion of contraband activity. Some exclaimed as saying, “The household items we purchased from legal shops in town are sometimes confiscated while these same items are displayed in shops in the towns”. They added that the little items they carry across the border for petty-trade or offering or taking back the offered were considered as contraband and taken away by security of both countries. Under such circumstances, the communities aired their grievances about the difficulty of identification of the legal and the illegal. That was why they earnestly demanded for regulating and controlling such illegal actions taken in the name of fighting contraband.
In the course of the assessment and the consultative meetings, it was made clear that rules formulated to control contraband do exist in Ethiopia. For example, Trade Law Proclamation No.1243/2021; Commercial Registration and Business Licensing Proclamation No.980/2016 and its repealing Proclamations No.1050/2019 and 1150/2021; Trade Competition and Consumers Protection Proclamation No.813/2013; and Customs Proclamation No.859/2014 and its repealing Proclamation No.1160/2019 supported by regulation and directives to govern trade activities in the country. It means the illegal actions were taken in the name of controlling illegal trade despite existence of relevant regulatory proclamations, regulations and directives.
The signed Memorandum of Understanding on facilitation of cross border relations is highly appreciated in resolving problems community members in border areas face. Similar agreements should follow on the outstanding issues of drug smuggling and human trafficking while consolidating the current agreement. The CDG continues working with the above partners during the current extension of the project and possibly in the future. At the same time we could do what is expected of us in consolidating the current agreement.
In the course of the assessment and the consultative meetings, it was made clear that rules formulated to control contraband do exist in Ethiopia. For example, Trade Law Proclamation No.1243/2021; Commercial Registration and Business Licensing Proclamation No.980/2016 and its repealing Proclamations No.1050/2019 and 1150/2021; Trade Competition and Consumers Protection Proclamation No.813/2013; and Customs Proclamation No.859/2014 and its repealing Proclamation No.1160/2019 supported by regulation and directives to govern trade activities in the country. It means the illegal actions were taken in the name of controlling illegal trade despite existence of relevant regulatory proclamations, regulations and directives.
The signed Memorandum of Understanding on facilitation of cross border relations is highly appreciated in resolving problems community members in border areas face. Similar agreements should follow on the outstanding issues of drug smuggling and human trafficking while consolidating the current agreement. The CDG continues working with the above partners during the current extension of the project and possibly in the future. At the same time we could do what is expected of us in consolidating the current agreement.