IN AFRICA II. The strategic framework for managing migration MIGRATION FOR DEVELOPMENT IN AFRICA 8. Migration and trade Countering poverty through economic development works towards alleviating an important migration pressure since nationals are no longer compelled to go abroad in search of economic opportunities. The relationship between economic development, trade and migration is an important one. In addition, due to multilateral negotiations taking place within the framework of the World Trade Organization (WTO), the issue of the movement of persons for trade in services is becoming a subject of increasing relevance within international trade agreements. The implementation of the Continental Free Trade Area and the AU Free Movement of Persons Protocol should aid trade, continental integration and development. The Free movement of persons is a key pillar of regional trade and economic integration, as it facilitates trade in goods and services and industrialisation, thereby contributing to socio-economic development and poverty reduction. Traders and service providers can deliver products on site and customers can visit suppliers abroad by accessing larger markets, while companies in countries with small and fragmented domestic markets are able to achieve economies of scale and compete internationally. Only 10 to 12 per cent of African trade takes place within the continent. Africa’s industrialisation and structural transformation is hampered by the low volume of trade that takes place within Africa, and the free movement of persons is one of the factors that can spur an increase in Intra African Trade. 8.1 Informal trade and Migration The majority of cross border trade in Africa is believed to be informal. A study by the Organisation for Economic Cooperation and Development (OECD) estimates that informal cross border trade can reach as high as 43 per cent of official gross domestic product (GDP) in most African countries. (OECD, 2009). Informal trade in Africa mostly takes three forms, firstly, that which is completely unregistered and entirely outside the formal economy, secondly where registered firms and traders partially evade trade regulations by resorting to illegal practices (e.g. under declarations and under invoicing) and thirdly where registered and unregistered firms and traders completely evade trade regulations (use of unchartered routes and other forms of smuggling). Despite its many negative connotations, informal trade plays a significant socio-economic role in Africa. For instance, it provides a 67