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UNDP Warns of Rising Informal Trade, Delays And Extortion Risks at Aflao And Elubo Borders

A recent investigation by the United Nations Development Programme (UNDP) at the Aflao and Elubo borders revealed a significant rise in informal cross-border trade due to high duties and extortion risks.

The UNDP found that the significant delays in customs clearance, exacerbated by a growing reliance on middlemen who charge to clear goods at the expense of the state.

The finding further revealed lack of adequate infrastructure and storage facilities as severely impacting trade efficiency, particularly for youth and women and youth-led Micro, Small and Medium Enterprises (MSMEs).

Ms Jemima Michael, Programmes Associate with the UNDP, said despite efforts to streamline border management, the absence of robust logistics and equipment hampered the operations of security personnel and border management.

She was speaking at a day’s stakeholders dialogue on the African Continental Free Trade Area (AfCFTA) protocol on women and youth-led businesses in Cape Coast.

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Held on the theme: “Building resilience of women and youth-led Micro, Small and Medium Enterprises through AfCFTA,” the forum which celebrated the fifth anniversary of AfCFTA , assembled key stakeholders in business, trade, institutions and agencies and media.

According to Ms Michael, women and youth-led MSMEs faced additional challenges, including security concerns and the need to make informal payments, which further hindered their ability to engage in cross-border trade effectively.

However, she was elated that their investigations did not observe any formal gender discrimination in trade policies though women-led businesses faced limited financial support, security barriers and networking challenges.

Going forward, Ms Michael said the UNDP’s findings underscored the need for urgent investment in border infrastructure and policy reforms to support MSMEs and enhance trade facilitation.

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She recommended streamlining of custom and administrative procedures to reduce delays, strengthening of border security and anti-corruption measures, financial and security support to protect traders.

Additionally, she suggested improved digital trade facilitation, electronic certification and encouraged gender sensitive trade policies to improve non-trade barriers.

Mr Divine Kutortse, Programme Manager at AfCFTA National Coordinating Office and Scheduled officer for UNDP Project, noted that Ghana had always been a leader in Africa’s economic transformation putting real weight behind the AfCFTA commitment.

He said AfCFTA was not just talking about inclusion but about ensuring that women and young entrepreneurs had the tools, the networks and the support they needed to take full advantage of AfCFTA.

“When we talk about economic growth, when we talk about opportunity, we have to make sure that growth is inclusive—because a rising tide has to lift everybody, not just a few.

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“That’s what the AfCFTA Protocol on Women and Youth in Trade is all about. It’s about breaking down barriers, opening up markets, and creating pathways for women, and youth-led businesses to compete, thrive, and build wealth that lasts for generations.

“Because when women succeed, when young people succeed, Ghana succeeds. And when Ghana succeeds, Africa moves forward. That’s the future we’re building, together,” he explained.

Source: GNA

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