Abstract:
This empirical study analyzes the determinants of Informal cross border trade in Rwanda. A binary logistic model was used to assess those determinants. It has found out that Informal cross border trade is influenced by both socio economic conditions (gender, age, level of education, ubudehe category, etc) and geographical conditions (proximity to the border, access to the road).
This study also looks at challenges faced by traders involved in informal cross border trade and provides policy recommendations that can help sort out those challenges. One of the main recommendations is to help traders involved in informal cross border trade by providing them with capacity building related to financial literacy and business management. It is also recommended that these traders should be facilitated to have access to financing (loans).
