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THEWORLDBANKEditedbyPaulBrentonandGözdeIsikDe-FragmentingaFricaDeepeningRegionalTradeIntegrationinGoodsandServicesDe-FRaGmenTInGaFRIca–DeepeningRegionalTradeIntegrationinGoodsandServicesPublicDisclosureAuthorizedPublicDisclosureAuthorizedPublicDisclosureAuthorizedPublicDisclosureAuthorizedDe-FragmentingaFricaDeepeningRegionalTradeIntegrationinGoodsandServices©2012InternationalBankforReconstructionandDevelopment/InternationalDevelopmentAssociationorTheWorldBank1818HStreetNWWashingtonDC20433Telephone:202-473-1000Internet::202-522-2422;e-mail:pubrights@worldbank.org.De-FragmentingAfrica____________________________________iListofAbbreviations_____________________________________ixPreface_____________________________________________xiiiForeword___________________________________________xv1.Introduction________________________________________1Introduction______________________________________________1RegionalIntegrationCanPlayaKeyRoleinExportDiversification____________3ThereisSubstantialScopeforTradeAcrossBordersinAfrica_______________5Cross-BorderTradeinAfricaisLimitedbyThickBorders__________________7RemovingNon-TariffsBarriersisEssentialtoFree-UpRegionalTradeinGoods_________________________________________12CoordinatedRegulatoryandTradeReformsareNeededtoIntegrateRegionalMarketsinServices.________________________________16Conclusions_____________________________________________20PartI.FacilitatingCross-borderTradeinGoodsandServices__________232.RiskyBusiness______________________________________25Introduction_____________________________________________25TheCharacteristicsofCross-borderTradersintheGreatLakesRegion________26ConditionsattheBorder_____________________________________28StepstoFacilitateCross-borderTradeintheGreatLakesRegion____________293.EconomicIntegrationintheLowerCongoRegion________________33Introduction_____________________________________________33EstimatingtheEffectsofRemovingtheBottleneck_____________________34BarrierstoCross-borderIntegration______________________________36PolicyRecommendations_____________________________________394.EnhancingtheRecentGrowthofCross-borderTradebetweenSouthSudanandUganda_________________________43Introduction_____________________________________________43CostsandConstraintsattheBorderandBehindtheBorder________________46tableofcontentsivDe-FragmentingAfricaWomen’sParticipationinInformalBorderTrade______________________51IndependentSouthSudanandanAgendaforRegionalTrade_______________525.LoweringtheCostofPaymentsandMoneyTransfersinUEMOA______55Introduction_____________________________________________55TheCurrentPaymentsLandscape_______________________________56TheLegalFrameworkApplicabletoPaymentServices___________________59WhatFactorsareLimitingUEMOAMoneyTransfers?___________________60PolicySuggestionsfortheWayForward____________________________616.FacilitatingCross-borderMobileBankinginSouthernAfrica________65Introduction_____________________________________________65UnderstandingtheDemandforMobileBankinginSouthernAfrica___________65Remittances_____________________________________________66TradePatternsinSouthernAfrica—ImplicationsforCross-borderPayments_____68TheFinancialandTelecommunicationsLandscape____________________68PolicyRecommendations_____________________________________697.WhyTradeFacilitationIsImportantforAfrica_________________73Introduction_____________________________________________73TheNewApproachtoTradeFacilitation___________________________74TradeFacilitationContributestoAfrica’sGrowth______________________75SettingPrioritiesforTradeFacilitation____________________________79TradeFacilitationisaMulti-sectoralApproach_______________________80HowtoIntegrateTradeFacilitationacrossSectors_____________________81FutureOpportunitiesforAfrica_________________________________83PartII.RemovingNon-tariffBarrierstoTrade____________________878.DeepeningRegionalIntegrationtoEliminatetheFragmentedGoodsMarketinSouthernAfrica__________________________89Introduction_____________________________________________89DespiteSouthernAfricanEconomiesOftenGrowingFasterthantheWorldAverage,