Introduction Cameroon is the largest trading partner of the Central Africa Economic and Monetary Community (CEMAC), driven by a mix of formal ties that are, nonetheless, constrained by several factors. While trade among central African countries is only 3%, the true figure is much higher as much of informal cross border trade is unreported. Informal cross border trade (ICBT) is defined as the commercial exchange of goods and services between neighboring countries that are not captured by customs, duties and government regulation. It is the plantain, cassava flour and tomato paste exported from Cameroon to Chad that is not done through formal channels. In Cameroon, the magnitude and consequences of Informal Cross Border Trade (ICBT) is not widely studied or captured, causing official figures to misrepresent the true nature of cross-border trade in national accounts. “For policymakers, it slows the for­ mulation of appropriate policies, lowers revenues from cross-border trade and promotes harassment and corruption at our borders.” What is the True Level of Unre­ ported Trade Between Cameroon and its Neighbours Trade between Cameroon and its CEMAC neighbours are under-es­ timated by customs services, as strong informal socio-cultural ties between countries continue to drive ICBT. A paper by Nkendah (2013) finds that over 155,000 tons of agri­ culture and horticulture products were shipped from Cameroon to its neighbours in 2008, estimated at FCFA 38 billion or 0.4% of Gross Domestic Product (GDP). This sug­ gest that unrecorded or informal trade represents up to 60 -80% of total trade based on today’s GDP numbers. Informal Trade in Cameroon Mimic Similar Levels Observed Across Africa ICBT also includes resale of goods and services that have been pro­ duced formally. For example, a Cameroonian informal sector tra­ der can buy pasta or rice in Came­ roon and resell this informally in Chad at a higher price. The level of ICBT in Cameroon is similar to that observed across Africa, where large informal sectors drive eco­ nomic activity. The United Nations Economic Commission for Africa (UNECA) finds that ICBT ranges from $10 - $24 billion annually, representing between 30 – 72% of formal trade. Why Do We Need to Understand Cross-Border Trade? There is abroad disconnect between policy and overall trade: While for­ mal policy initiatives target only formal traders, there is a vast network of informal traders. Po­ licymakers should understand that these border markets are regulated by different rules and networks to respond effectively – which should go beyond mere formalization of these actors. Understanding the spatial location of such traders, their profiles and sources of finance as well as broader market functioning and impact of cross-border price volatility will allow more inclusive policies to emerge. For example, we have repeatedly called for a Simplified Trade Regime (STR) that allows traders to cross borders with goods valued at less than $2000 with minimal checks and a standardized fee equivalent to the value of their good – say 5% of the goods value. Omission of cross-border trade from official statistics clouds the nature of integration across Central Africa. When trade taking place outside institutions are omitted, it ignores institutions that have de­ veloped through solidarity, cultural and commercial networks. It leads to a distorted view of the business environment, slowing investment across Cameroon and the broader CEMAC region, exacerbating po­ licy inertia on vital issues such as infrastructure and tax incentives. Making ICBT Work for Informal Sector Workers ICBT is facilitated by official posi­ tions of control, subjecting goods to solicitation by administrative officials that are not reflected in official statistics as bribery is generally unreported. By stan­ dardizing trade in unrecorded trade, fees and processes will be standardized, reducing corruption and arbitrary decision-making. By acknowledging ICBT, policymakers will reduce corruption and protect vulnerable informal sector traders that are ignored by national poli­ cies and regional agreements like the African Continental Free Trade Area (AfCFTA). Informal traders are overlooked by citizens and au­ thorities and so protecting their rights are essential to protect their dignity, rights and support an en­ vironment where trade enhances human dignity. More Government Revenue: Policy­ makers – customs and the ministry of Finance – rely on customs and other taxes to finance the budget. Rather than allow huge amounts of potential fees to be lost to cor­ ruption, imposing a 5% fee on the value on goods less than $2000 crossing borders will enable the state generate revenues. “Back of the envelop calculations point to the government raising up to $11.8 - $15 million USD or FCFA 6.6 billion, if they allow sim­ pler rules for traders importing or exporting goods that are less than FCFA 1.2 million.” Regularizing informal Trade will Bolster Food Security: 3 million people in central Africa are at risk of food insecurity. If traders can buy and sell goods below $2000 with a requirement to fill out a simplified rules of origin form and produce safety document, they can trade more confidently across borders, creati...