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Agricultural smuggling: West Africa suffers

30/09/2019
Source : Josiane Mambou Loukoula et Agence Ecofin
Categories: Companies

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Every year, thousands of tons of agricultural products cross borders illegally, without the knowledge of
customs authorities of the countries of the sub-region. Taking advantage of the porosity of the territorial limits and sometimes of the
flaws in state policies, the phenomenon remains a real headache.
Agricultural smuggling in West Africa takes the form of a re-export trade in products
agricultural. A real shortfall. While it remains difficult to integrate contraband flows into systems
official statistical information, it is nonetheless a lucrative business for operators.
Unlike smugglers, actors in informal cross-border trade trade goods from
modest value often low, due to constraints such as the lack of efficiency of the circuits of
marketing and distribution.
“They are not necessarily officially registered as entrepreneurs, but in most
cases, do not seek to circumvent applicable legislation, taxation or procedures",
says the International Center for Trade and Sustainable Development.
In the West African region, one of the most affected countries is Côte d'Ivoire. His status as first
producer of cash crops such as
cocoa and cashew makes it a market of choice for many
smugglers.
In the case of
cocoa , a significant undeclared flow crosses the country's borders each year towards its
neighbors like Ghana, even though the two countries only authorize the export of beans by way of
maritime. According to estimates by the Ivorian authorities, out of a
cocoa harvest of 1.47 million
tons in 2011/2012, a volume of one hundred and fifty-three thousand tons was smuggled. This stock
then represented a shortfall of about four hundred million dollars for the segment
exports and seventy-six million dollars in tax revenue for the government.
More than 10% of harvests smuggled
Far from being the prerogative of disparate players, this trade is structured within networks that can extend
and conduct large-scale operations. “Most of the
cocoa is transported in trucks
with an average capacity of five tons which pass through at nightfall. Usually the traffickers
send out groups of motorcyclists in advance to scan the horizon," said the report of a group
of UN experts dating back to 2013.
As for the cashew sector, the authorities estimated, in 2011, tax losses at three million dollars.
and export earnings of one hundred and thirty million dollars, for a volume of one hundred and fifty thousand tons
illegally crossing borders.
Beyond the financial aspect, agricultural smuggling skews the real measure of the efforts made by the
sectors concerned and distorts the perception of investors or authorities of the effective performance of
agricultural products.
The official statistics of the Ghanaian cashew sector in 2016 are a perfect illustration of this.
That year, the country announced revenues of 244.5 million dollars thanks to the export of one hundred
sixty-three thousand tons of cashew nuts, even though it only produces seventy thousand tons per
year.

If, like any illicit activity, agricultural smuggling defies established rules, its rise is also linked to
shortcomings in domestic or regional policies. Domestically, the main driving force
remains the price differential that often prevails between countries for the same agricultural product.
At the regional level, agricultural smuggling is mainly linked to the application of different customs duties
between member countries of the same economic zone. Many analysts point to the difficulty of
the effective implementation of the common external tariff in the emergence of a segment
import-re-export of agricultural products.
In order to eradicate the phenomenon or, failing that, to try to minimize its impact, some countries in the region have taken
strong measures. In May 2018, Côte d'Ivoire issued an order prohibiting the purchase, sale,
storage, sale or distribution without approval of products such as
coffee , cocoa , rubber, nuts
cashew and
cotton .
This provision provides for a fine of up to fifty million CFA francs, a
ten years' imprisonment as well as confiscation of the proceeds and means used in the fraud.
For its part, Nigeria has temporarily closed, since August 20, several border crossing points with
Benin, with the stated objective of combating rice smuggling. Despite these provisions, many
observers point out that eradication is likely to be a long march as special interests are
important.
In view of the seriousness of the phenomenon, some speak of the need for coordination at the regional level.
This could involve better harmonization of prices and tariff measures between countries, as well as
a strengthening of cooperation and efficiency in the control and management of borders.
For the experts, the fight against agricultural smuggling in the region remains essential in order to harvest the
fruits of regional and continental integration, notably through the Continental Free Trade Area
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