The Intergovernmental Authority on Development IGAD has ratified a policy that regularizes businesses at the countries’ boarders which were largely not recorded by custom authorities. The regional policy framework on Informal Cross-border Trade (ICBT) and Cross-border Security Governance (CBCG) was adopted yesterday by trade ministers from the member states. Kenya, Djibouti, Ethiopia, Sudan, South Sudan, Somalia and Ugandan officials attended the meeting held in Mombasa where they observed that the policy is a boost for the African Continental Free Trade Area.
On March 21, more than 40 African nations signed a deal to create the Area to improve intra-state trade that stood at less than 16 per cent. The ICBT and CBCG policy will be passed to IGAD heads of states for onward transmission to the African Union. Officials said the adaption will reduce tax on intra-Africa imports currently estimated at six per cent – a figure that has cheapened imports outside the continent.