Informal cross-border traders and the promise of the African Continental Free Trade Agreement

The chapter critically analyses entrepreneurship in the informal economy, particularly within transnational trade networks in Africa. Informal Cross-Border Traders (ICBTs) form the basis of the chapter as a group of entrepreneurs navigate complex regulatory environments, supply chain challenges and economic uncertainties to sustain their businesses. Despite their significant contributions—accounting for up to 40% of intra-regional trade in Southern Africa—these entrepreneurs face institutional barriers hindering their formalisation and growth. The study situates ICBTs within the broader framework of contextual embeddedness in entrepreneurship research, emphasising the institutional, legal, and regulatory contexts that shape their opportunities. Drawing from the experiences of COMESA and the EAC, where Simplified Trade Regimes (STRs) have eased compliance, the chapter highlights how trade policies either enable or constrain entrepreneurial activity. It argues that African Continental Free Trade Agreement (AfCFTA) presents an opportunity to reduce trade barriers, allowing ICBTs to transition into formal entrepreneurship, expand operations, and contribute to inclusive economic growth.