Final Report Organisational Arrangement for Women in Informal Cross Border Trade in Swaziland. Prepared by: Dr. Khanyisile D.

Transcription

1 Final Report Organisational Arrangement for Women in Informal Cross Border Trade in Swaziland Prepared by: Dr. Khanyisile D. Dlamini November 2013 i

2 ACKNOWLEDGEMENT My special thanks and foremost appreciation goes to UN Women, which has funded the project and without whose funding this project would not have taken place. I would also like to extend my appreciation to the UNDP Swaziland Country Office, Minister and Principal Secretary of the Ministry of Commerce, Industry and Trade and the Ministry s SMME Unit for affording me the opportunity to be part of this project. Special thanks go to the SMME Unit Director, Mr Michael Zwane and Mr Mduduzi Kunene for their outstanding support and guidance throughout the project. Your commitment, flexibility and ownership of the project cannot be matched. Appreciation also goes to the key informants and the vendors for their commitment towards the project, providing valuable information and above all, giving their valuable time. To God be the glory; for providing me with the wisdom and strength to do the assignment. Dr. Khanyisile D. Dlamini ii

3 Table of Contents ACKNOWLEDGEMENT... ii ACRONYMS... v EXECUTIVE SUMMARY... vi 1. INTRODUCTION AND BACKGROUND Background Trade Protocols Relevant to the Informal Trade Sector Gender Dynamics of Informal Cross Border Trade SWAZILAND S CONTEXT METHODOLOGY Data collection Documents review Observation Key informants interviews Focus group discussions Data Analysis PROCEEDINGS OF THE FOCUS GROUP DISCUSSIONS The First Session The Second Session The Third Session The Fourth Session FEEDBACK ON DISCUSSIONS STRATEGY FOR DEVELOPING THE ORGANISATION Name Vision Mission Values Membership Defining WICBT Meetings Executive Committee Term of Office Financial Projections iii

4 9.11 Objectives, action plan, timelines and the cost of activities of the Apex Organisation Legal Formation Association not for gain Features of the an association not for gain Pros of an association not for gain Cons of an association not for gain Registration process of an association not for gain RISK ASSESSMENT CONCLUSION iv

5 ACRONYMS CBT Cross Border Trade COMESA Common Market for Eastern and Southern Africa GDP Gross Domestic Product ICBT Informal Cross Border Trade ICBTs Informal Cross Border Traders MCIT Ministry of Commerce, Industry and Trade PRSAP Poverty Reduction Strategy and Action Programme SADC Southern African Development Community SMME Small Micro Medium Enterprise STR Simplified Trading Regime UNIFEM United Nations Development Fund for Women WICBT Women in Informal Cross Border Trade v

6 EXECUTIVE SUMMARY It has been realised that informal cross border trade (ICBT) places a strong emphasis on a market-led strategy of regional integration. Thus, there has been a widespread operation of informal cross-informal trading activities, which have succeeded in effecting extensive market integration where government-led initiatives have failed. Research has shown that informal cross border trading activities have cushioned the effects of the financial crisis and the food crisis on African countries. Research has indicated that ICBT is an integral, yet unrecognized, component of the economy of Southern Africa. The reason that these ICBT activities are not recognised could be because they move small amounts of goods from country to country, often trading in informal sector markets. Additionally, ICBT largely consists of those goods exchanged across borders, either bypassing the official customs checks and recording points, or passing through these customs points while deliberately undervalued or unrecorded. Some African countries have established policy instruments and protocols that are relevant to the informal trade sector. In 2008, the Southern African Development Community (SADC) Protocol on Gender and Development was adopted, which addresses issues of relevance to informal traders. COMESA has also made the business of ICBT easier by supporting a Simplified Trading Regime (STR) for cross border traders. The idea behind STR is to simplify the trading procedures, which are currently regarded as being cumbersome and restrictive. It has been observed that ICBT in Africa features prominently among women s individual strategies for self-employment, poverty reduction and wealth creation. Thus, United Nations Women South Africa Multi Country Office (UN Women), in collaboration with the Ministry of Commerce, Industry and Trade (MCIT) Small, Micro Medium Enterprises (SMME) Unit, began to implement the Women in Informal Cross Border Trade in Swaziland Project. The overall goal of the project is to create wealth, reduce poverty and minimise exclusion among WICBT. The objectives of the assignment were to review and establish a coordinated apex organisation for the WICBT sector in Swaziland; to facilitate harmonised national frameworks and collective operational and organisational growth of the vi

7 organisation, and; to develop a harmonised approach with domestic and international trading counterparts. Several methods were adopted to conduct the assignment. Data collected were analysed on the basis of emerging themes within the context of the study framework. The findings and contributions made formed part of the strategies for formulating the apex organisation. The methodology included: Literature review of national policies; regulatory frameworks; organisational brochures; programmes in progress; forms of organised structures; national strategies and plans within and those affecting the WICBT sector; Observation of organizations promoting ICBT around Swaziland; Conducting interviews with key informants who hold key official positions in selected organisations providing support to WICBT; and Focus group discussions where members of different organisations/associations of WICBT participated. Based on the information gathered and discussions held, the strategic organisational framework of the apex organisation was developed. The participants agreed that the apex organisation shall be known as: Buhle Bebunye - Swaziland National Women in Informal Cross Border Trade. The name Buhle Bebunye means the beauty of oneness. It was later established that Buhle Bubenye is no longer available for use at the Registrar s Office so it was agreed that the name Buhle Bebunye will be used as a tag line and the organisation shall be registered as Swaziland National Women in Informal Cross Border Trade. It was also resolved that the registered head office of the organisation will be in Manzini. The vision of the organisation will be to provide and represent Swaziland s informal cross border traders with a platform to trade nationally; regionally and internationally by ensuring free movement. The mission being to assist in creating a pleasant environment for members to conduct their informal cross border trade with ease, being profitable and eradicating poverty. vii

8 Values of the organisation and its members are to uphold service excellence, honesty, transparency, commitment and accountability. Only associations/organisations will be allowed to be members of the apex organisation. Individuals will be encouraged to be members of any association/organisation which is a member of Buhle Bebunye. The member association/organisation may be informal/formal; legally or not legally established; with or without a constitution the main criteria was that it must be able to prove its existence by showing membership of a minimum of seven (7) members who are ICBTs. It was further decided that the composition of the Executive Committee shall be 100% women. The 100% women in the executive was decided upon realising that, as with other sectors, gender inequalities are pronounced in ICBT. The positions in the Executive Committee are the President, Vice-President, Executive Secretary, Vice-Executive Secretary, Treasurer, Organising Officer and three (3) other Members. The term of office for all positions in the executive committee will be three (3) years. Each Executive Member may be in office for three (3) consecutive terms, after which that member shall take a term s break before being re-appointed to office. A financially sustainable organisation is crucial. Institution-building support in the form of (direct or indirect) contributions from a donor to the formation of the apex organisation is also essential. Based on the participants understanding of the importance of sustainability, it was agreed that the fees would be E2, joining fee and E subscription per month. It was also agreed that the fees needed to be reviewed bi-annually. Buhle Bebunye shall also embark on income generating activities. The participants had agreed that they are in support of a legal structure that will allow equal opportunities where they will all work as equals; everyone must have one equal voice; as that will allow members to give the mandate to the executive. Nevertheless the objectives of the organisation will be to: 1. Register and launch the apex organisation; 2. Develop and implement effective advocacy strategies and interventions; viii

9 3. Facilitate information gathering and dissemination; 4. Promote and monitor relevant legislation and policy changes in support of WICBT; and 5. Develop strategic partnerships. The country s informal sector is of crucial importance to its economy and society. Therefore, the Government needs to prioritise support to women informal cross border traders, providing them with information and services in support of their activities. WICBT can be easily and adequately targeted through the formation of an apex organisation that can represent, address, support and empower them. ix

10 1. INTRODUCTION AND BACKGROUND 1.1 Background According to Hashin and Meagher (1999) 1, the original approach to trade in Africa was characterised by autarchic, government-driven approaches to regional integration, an emphasis on the transformation of industrial production through import-substitution, and the proliferation of largely ineffective regional integration schemes. What has been observed is that since the 1980s, governments in the SADC region have taken to pursuing policies prescribed by the international financial institutions, ranging from Structural Adjustment Programmes (SAPs) to Poverty Reduction Strategy Papers (PRSPs) to Poverty Reduction and Growth Facility (PRGF). Yet the current global economic crisis has exposed how the model of unbridled free markets, deregulation and ever-increasing competition has been risky and ill conceived (Makombe, 2011) 2. In contrast, it has been realised that informal cross border trade (ICBT) is totally different, since it places a strong emphasis on a market-led strategy of regional integration, conceived as complementary to structural adjustment involving a shift in orientation to liberalisation, and a more decentralised approach grounded in popular support and private sector initiative. Thus, there has been a widespread operation of informal cross-border trading activities, which have succeeded in effecting extensive market integration where government-led initiatives have failed. Some commentators have noted that formal integrated initiatives have been severely weakened by structural adjustment, owing to the pressure of mounting economic crisis, constraints on government spending; as civilians have resorted to informal means of income generation under the pressure of increasing economic austerity. By contrast, the same economic environment appears to have resulted in a flourishing of cross-border trade. 1 HASHIN, Y. and MEAGHER, K. (1999) Cross-Border Trade and the Parallel Currency Market Trade and Finance in Context of Structural Adjustments: A Case Study from Kano, Nigeria; A report from the research programme. The Political and Social Context of Structural Adjustment in Africa; Nordiska African Institute Research Report No MAKOMBE, P.F. (2011) Informal Cross Border Trade and SADC: The Search for Greater Recognition; Open Society Initiative for Southern Africa Initiative p

11 Subsequently, recent research has shown that informal cross border trading activities have cushioned the effects of the financial crisis and the food crisis on African countries. The Regional Indicative Strategic Development Plan (SADC, 2003) 3 clearly states that ICBT is an integral, yet unrecognized, component of the economy of Southern Africa. The reason that these ICBT activities are not recognised could be that they move small amounts of goods from country to country, often trading in informal sector markets. Additionally, ICBT largely consists of those goods exchanged across borders either bypassing the official customs checks and recording points, or passing through these customs points while deliberately undervalued or unrecorded. It has been noted that despite its economic significance, ICBT largely goes undocumented and its participants are rarely recognized, supported, or included in policy formulation. As such, the general negative perception of ICBT means that in practice it is viewed more as a threat needing control rather than a genuine economic activity (Makombe, 2011) 4. These traders work without benefiting from preferential tariff agreements, and often work at personal and economic risk they can be robbed, harassed by customs officials, and women in particular, can be raped, beaten or sexually exploited if they are not adequately protected. Despite the risks, this kind of trade is an important component of the economy and a vital source of livelihood for the poor particularly for women, who form the majority of ICBT. People involved in ICBT do not derive the benefits of formal employment such as health insurance, access to information or capital, or leave days. 1.2 Trade Protocols Relevant to the Informal Trade Sector There are a number of policy instruments and protocols that are relevant to the informal trade sector. In 1996, SADC adopted a Protocol on Trade which addresses issues of relevance to informal traders such as transport issues; transportation and storage requirements pertaining to certain goods; exemptions from customs; customs legislation; import and export restrictions; and competition. The protocol further commits SADC member states to: 3 SADC (2003), Regional Indicative Strategic Development Plan, 2003, SADC Gaborone. 4 MAKOMBE, P.F. (2011) Informal Cross Border Trade and SADC: The Search for Greater Recognition; Open Society Initiative for Southern Africa Initiative p

12 Raise awareness amongst their citizenry regarding the importance of trade to economic development; Facilitate the strengthening of internal capacities to undertake trade effectively; Strengthen national and regional infrastructure; Involve the private sector in policy development; Encourage SME participation; and Harmonize laws and practice, as well as simplify and harmonize customs procedures. In August 2008, the SADC Heads of State and Government, with the exception of Botswana and Mauritius, signed the SADC Protocol on Gender and Development. The Protocol, though not limited to, mentioned that by 2015 the member states shall: Adopt policies and enact laws which ensure equal access benefit and opportunities for women and men in trade and entrepreneurship, taking into account the contribution of women in the formal and informal sector; Review their national trade and entrepreneurship policies, to make them gender responsive; and Introduce measures to ensure that women benefit equally for economic opportunities, including those created through public procurement processes. However, the SADC Gender Protocol 2012 Barometer stated that the conventional macroeconomic policies and perspectives are gender blind, failing to recognise that: Women's potential contribution to economic development is systematically discouraged, adversely affecting the economic health of the region; Women's contribution to the economy is systematically underestimated; There is an informal and hidden economy made up mostly of women; There is an unpaid care economy in which women do most of the work of maintaining the labour force and keeping the social fabric in good order, maintaining social cohesion, civic responsibility and good neighbourliness; and Non-market processes contribute to the healthy functioning of the economy. 5 5 GENDER LINKS (2012) SADC Gender Protocol 2012 Barometer; Chapter 4: Productive Resources and Employment, Economic Empowerment; p

13 The SADC Gender Protocol 2012 Barometer confirms what was earlier stated by Verveer (2011) 6 and Pheko (2010) 7 that women continue to be side-lined in gaining access to opportunities for economic empowerment and that SADC states continue being biased towards formal business and larger industries by intervening in their markets through trade and fiscal policies, while doing little to help the informal traders. Therefore, SADC still needs to recognize ICBT as a part of the bigger regionalist strategy because it has been established that it is not only a source of livelihood; but contributes towards formal employment under Structural Adjustments Programmes (SAPs). Thus, ICBT plays a key role in poverty alleviation as it is a means of survival and a source of income. Further, ICBT complements the objectives sought under regional integration to poverty alleviation and the promotion of sustainable development. On the other hand, COMESA seems to have gone a long way in trying to make the business of ICBT easier. For example, it has supported a Simplified Trading Regime (STR) for cross border traders. The idea behind STR is to simplify the trading procedures, which are currently regarded as being cumbersome and restrictive. Ten COMESA members namely Burundi, Democratic Republic of Congo (DRC), Ethiopia, Kenya, Malawi, Rwanda, Sudan, Uganda, Zambia and Zimbabwe have agreed to pilot the STR. The STR is an important development as it is an initiative of the CBTs themselves. They were given an opportunity to discuss their concerns at a COMESA Council of Ministers meeting. The discussions led to COMESA developing an STR to meet the traders demands. The STR applies to consignments of less than US$500 and is based on three components: a simplified customs document; a simplified certificate of origin; and a common list of products. According to the COMESA Assistant Secretary General Karangizi (2009) 8 some of the key benefits of the STR include: Duty and quota free access for traders who currently have to pay duty for goods that should otherwise be free of customs duties; 6 VERVEER, M. (2011) AGOA should empower Women SMEs; Southern Africa Trade Hub, PHEKO, L. (2010) SADC States Blamed for Unjust Informal Trade Policies; Media Statement Issued by Ecumenical Service for Socio-Economic Transformation (ESSET) on 15/10/ Karangizi, S. (2009) STR Beneficial to our People. Opening Speech at a sub-regional meeting of Permanent Secretaries and Senior Officials of Pilot countries implementing STR held in Nairobi, Kenya 21st 22nd October, COMESA. 4

14 Reducing smuggling and use of unauthorized routes as there will be an incentive for informal traders to use formal channels and no longer any reason for them to smuggle goods across borders or to bribe border officials; and Mainstreaming cross-border trade from informal to formal which should lead to better data capture, improved planning and policy making, improved monitoring of trade flows and ultimately better information and reporting on the region s trade situation. While the provisions of the protocol are relevant and important for informal traders, it has been argued that the SADC protocols in particular do not seem to adequately take cognizance of the sector and thus do not respond to its needs effectively. It is unclear how informal traders or their associations can access the protocol in terms of being within the ambit of its provisions or whether they are considered as relevant actors in regional trade. The protocol speaks of trade in general and does not specifically mention ICBT. Thus, there is a low level awareness of it among the ICBT. There is also the added burden that it seems to lean heavily towards formal trade thus creating the perception that it is not really for informal traders. 1.3 Gender Dynamics of Informal Cross Border Trade Gender inequalities also manifest themselves in informal trade and affect the way in which women make their living. According to the International Labour Organisation (ILO) (1991) 9 informal trade is the most important source of employment among self-employed women in sub-saharan Africa. Ndiaye (2010) 10 stated that informal cross border trade in Africa features prominently among women s individual strategies for self-employment, poverty reduction and wealth creation. This was further confirmed by the United Nations Development Fund for Women (UNIFEM) baseline studies on Women in Informal Cross Border Trade (WICBT) carried out in of women in informal cross border trade surveyed by UNIFEM in Cameroon, Liberia, Mali, Swaziland, Tanzania and Zimbabwe as 9 ILO (1991) The dilemma of the Informal Sector Report of the Director General, p21, Geneva: ILO. 10 NDIAYE, T. (2010) Case Story on Gender Dimension of Aid for Trade: Women Informal Traders Transcending African Borders: Myths, Facts and Ways Forward; International Trade Centre. 5

15 cited by Chiwara and Ndiaye (2010) 11. The survey also revealed that a great majority of the women interviewed stated that the proceeds from their trading activities are the main source of income for the family; women traders use their income to buy food and other items for the household, pay for school fees, health care services and rent, save in savings clubs and banks and reinvest in their businesses. Therefore, empowering women informal cross border traders will have multiplier effects on poverty reduction, employment creation, intra-african trade and regional integration 12. The women informal cross border trade address vital issues of livelihoods such as food and income security, yet they are neglected by mainstream trade policies and institutions, thus undermining the profitability and visibility of their activities. It can be said that the actual economic and social integration of southern Africa is being spearheaded by what is happening in ICBT. Thus, WICBT is said 13 to sustain Southern African Development Community (SADC) economies because: Women's informal trading activities contribute to poverty reduction, employment and wealth creation in Africa; WICBT traders make an important contribution to economic growth and government revenues. This is supported by Southern Africa Trust (2008) who reported that an average value of informal cross border trade in the SADC Region is US$ 17.6 billion per year; A 2004 ILO study showed that trade is the most important source of employment among self-employed women of Sub-Saharan Africa providing 60% of non-agricultural self-employment; and Informal Cross Border Trade (ICBT) contributes for 30-40% to intra-sadc Trade of which 70% of informal cross border traders are women. 11 CHIWARA, L. and NDIAYE, T. (2010) Unleashing the Potential of Women Informal Cross Border Traders to Transform Intra-African Trade; UN Women. 12 FACT SHEET the Contribution of Women Informal Cross Border Traders to Transform SADC Economies 13 CHIWARA, L. AND NDIAYE, T. (2010) Unleashing the Potential of Women Informal Cross Border Traders to Transform Intra-African Trade; UN Women. 6

16 Despite the notable contributions of the WICBT, these traders are said to be neglected by the mainstream trade policies and institutions, thus undermining the profitability of their activities 14. It was also realized that despite all the challenges encountered by the ICBTs, they are contributing a considerable percentage to the Gross Domestic Product (GDP) of both their home countries as well as the countries they were trading in 15. Hence, it has been argued that by ignoring informal cross border trade, SADC member States could be overlooking a significant proportion of their trade SWAZILAND S CONTEXT It is in this context that UN Women in collaboration with the Ministry of Commerce, Industry and Trade (MCIT) Small, Micro Medium Enterprise (SMME) Unit began to implement the Women in Informal Cross Border Trade in Swaziland Project. The overall goal of the project is to create wealth, reduce poverty and minimise exclusion among WICBT. The organisational arrangement for WICBT in the Swaziland project ran concurrently with the development of the national strategy and action plan to promote ICBT. This made it easy to understand the operating environment in which WICBT function; the constraints they face; and how to enhance their participation to create wealth and reduce poverty. Swaziland has faced her own share of economic downturn which severely affected most efforts to boost economic development. This has seen, among other things, the burgeoning of informal cross border trade as people seek ways of escaping the poverty trap. The informal sector has become an important component of national economies and a major contributor to socio-economic progress. The economic and social situation in Swaziland has become more acute and the crisis of unemployment, poverty and HIV/AIDS cries out 14 UNITED NATIONS DEVELOPMENT FUND FOR WOMEN BRUSSELS (2009) Findings of the Baseline Findings Studies on Women in Informal Cross Border Trade in Africa; 24 March UNITED NATIONS DEVELOPMENT FUND FOR WOMEN (UNIFEM) (2010) Consultative Meeting for women in Informal Cross Border Trading; 3 4 June 2010 at Holiday INN Harare, Zimbabwe. 16 UNITED NATIONS DEVELOPMENT FUND FOR WOMEN BRUSSELS (2009) Findings of the Baseline Findings Studies on Women in Informal Cross Border Trade in Africa, 24 March

17 for attention. As the battle to survive intensifies, informal and cross border trade has become a viable alternative. According to Manzini and Ncube (2009) 17 ICBT in Swaziland has been a source of wealth creation and a means of survival for small businesses. The SMME National Policy 18 mentions that the Government is committed to creating a market economy in which the private sector play a major part in creating income, employment and growth. Since Small, Micro and Medium-sized Enterprises (SMMEs) form the base for the private sector in the country, the revised SMME National Policy states that the SMMEs must be enabled by encouraging and facilitating growth; creating a conducive environment in which small business ownership can flourish and take the lead in driving economic growth. Furthermore, the Poverty Reduction Strategy and Action Programme 19 also emphasises the empowerment of the poor through direct participation in the generation of the country s economic growth where they are able to generate income. Swaziland, being one of the member states that signed the SADC Protocol on Gender and Development in 2008, also indicates Government s commitment to create a favourable environment for WICBT. The SADC Gender Protocol 2012 Barometer indicates that women constitute 63% of the informal sector while men constitute only 37%. It further states that most of the business ventures are not recognised by local governments, or only a few vending points are permitted by municipalities, making most street vendors' activities illegal. Thus policy specific to the informal sector is yet to be developed. Thus, the Ministry of Justice and Constitutional Affairs is in the process of auditing and aligning trade legislation with the Constitution and the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW). The National Gender Policy 20 highlights the importance and 17 MANZINI, L. AND NCUBE, C. (2009) Women in Informal Cross Border Trade in Swaziland; UN Women. 18 MINISTRY OF ENTERPRISE AND EMPLOYMENT (2003) National Policy of the Kingdom of Swaziland on the Development of Small, Micro and Medium-sized Enterprises. 19 GOVERNMENT OF SWAZILAND (2006) Yingcamu Poverty Reduction Strategy and Action Programme: Towards Shared Growth and Empowerment; Volume 2; Ministry of Economic Planning and Development. 20 THE KINGDOM OF SWAZILAND (2010) National Gender Policy. 8

18 commitment of the Government to promote gender equality and empowerment of women in the country. Subsequently, this project seeks to provide the framework to support the creation of a viable and sustainable coordinated apex organisation that will create economic opportunities for ICBT and empower them through collective action. This is expected to contribute to poverty reduction and inclusion of women since traditional Swazi men were sought to provide for their families, but this gender orientation has drastically changed over the past years due to lack of employment because major companies closed down. This situation has forced women to engage in income generating activities including ICBT in order to provide for their families, which has been a great challenge to women as they had been marginalised in the past. Nevertheless, these disparities will be eradicated as Government promotes aspects of Swazi tradition and culture in order to promote equitable opportunities and rights for both males and females in all aspects of development 21. Moreover; this report forms a basis of how the proposed apex organisation will be established based on recommendations from various stakeholders in WICBT according to the terms of reference (ToR). 3. METHODOLOGY This section of the report discusses processes adopted for the execution of the assignment. The adoption of the methodology was based on the objectives of the assignment; the scope of work and deliverables as outlined in the ToR were also considered. The discussion identifies the areas in which data were collected in order to meet the objectives and deliverables. It will also include a description of the steps taken in conducting the assignment, the methods used to collect the data and assumptions made. 6.1 Data collection Literature Review A desk review of national policies; regulatory framework; organisational brochures; programmes in progress; forms of organised structures; national strategies and plans within and those affecting the WICBT sector was conducted. This provided valuable insight on the 21 THE KINGDOM OF SWAZILAND (2010) National Gender Policy. 9

19 possible and various forms of organised structures, highlighting their pros and cons, and policy and legal arrangements that might need to be negotiated to establish the apex organisation (see Annexure 1). This review included the justification for the creation of an apex organisation and the comparative advantages in the promotion of informal traders Observation A number of organizations promoting ICBT around Swaziland were observed in an effort to derive lessons from their actual experiences about the costs and benefits of their operation and their establishment Key informant interviews Key informant interviews were held with relevant officials from selected organisations, which were identified as those providing support to WICBT. One-on-one interviews were conducted with officials from several organisations/associations of WICBT and their responses formed part of the analysis. These individuals were identified through focus group discussions with women traders, as well as a snowballing process where one organisation identified would mention other organisations undertaking similar work with crossborder traders ensuring representativeness of the target population. The data gathered from the interviews reinforced the results from the observations of apex organisations in the country. The findings from the interviews were triangulated with focus group discussion findings Focus group discussions Additional information was gathered from focus group discussions where members of different organisations/associations of WICBT participated. The focus group discussions provided detailed information on prevailing beliefs, opinions and attitudes on WICBT and how they can be structured within the short time that was allocated. The information was collected from participants without personalizing it, allowing face-to-face interaction with many informants simultaneously as well as providing an opportunity for many informants to interact at the same time. 10

20 6.2 Data Analysis Content analysis was used to analyse qualitative data on the basis of emerging themes within the context of the study framework. The findings and contributions made formed part of the strategies for formulating the apex organisation. 4. PROCEEDINGS OF THE FOCUS GROUP DISCUSSIONS 7.1 The First Session Representatives from different association/organisation of WICBT (see Annexure 2 attendance list) were invited by UN Women Programme Coordinator to attend the focus group discussions on May 14, Focus group discussions were used because they provided detailed information on prevailing beliefs, opinions and attitudes on ICBT. Sensitive information was collected from participants without personalising information; there was face-to-face interaction with many informants simultaneously; and it provided an opportunity for many informants to interact at the same time. 11

21 Figure 1: One of groups during discussions The purpose of the focus group discussion was to advise participants on the various available structures for coordinating the sector; highlight the pros and cons of each structural formation; assist in the development of a strategy document on the establishment of the network, its structure, management, governance issues, regulations and registration; and also advise on likely risks. Figure 2: Participants listening to presentation 12

22 7.2 The Second Session A second focus group discussion was held on June 4, The discussions were to validate the draft organisational framework and proposed organisational structure from the previous session; consolidate and ensure that all inputs and comments from the first session were captured; present the vision, mission and objectives of the proposed organisational structure; advice on registration; advice on obligations and reporting requirements and present strategies to mitigate risk. 7.3 The Third Session A meeting of leaders of the different existing organisations that deal with issues of WICBT was held at the MCIT SMME Unit conference room on 26 June 2013 (see Annexure 5 Attendance List). The objective of this consultative meeting was to obtain the views of the leaders on matters related to the formation of the apex organisation and how best the organisation could be established in order to be effective. The main focus of the discussion was on the legal formation that was to be adopted and membership of the apex organisation. The Director of the SMME Unit was also in attendance, he offered advice to the leaders. It was in this meeting that the resolution on membership and legal arrangement for the apex organisation was reached. Figure 3: Other leaders Figure 4: Some leaders 13

23 7.4 The Fourth Session A final adoption meeting was held on 12 July 2013, which was attended by all individuals who are in CBT. A final presentation of what had been recommended by the participants was presented (see Annexure 6). Figure 5: Some of the participants at the adoption meeting Figure 6 below is a picture of the Interim Committee that was elected. Annexure 7 shows the name, contact number and position held by each interim committee member. The committee was also addressed by the Director of SMME Unit. Figure 6: Interim committee 14

24 5. FEEDBACK ON DISCUSSIONS This part of the report specifies the beliefs, opinions and attitudes stipulated in the focus group discussions on the structural formation of the proposed apex organisation. presentation was made on the pros and cons of each of the possible ways that the apex organisation could be formed; this allowed all participants to have a common understanding in terms of the concept of ICBT and an apex organisation s establishment. The facilitation was in a participative set up to allow the participants to voice their views and opinions. The participants were then divided into groups; each group was tasked with discussing the proposed apex organisation. Despite its focus on the creation of a new organisation, results of this investigation may still suggest some guidelines for improving the performance of the few existing apex organisations that may have a promising future. After the presentation of reports by the different groups, a common understanding emerged in terms of how to strategically establish an apex organisation for WICBT in Swaziland, whose parameters are stated below. A Figure 7: A group discussing the legal formation of the apex organisation 15

25 6. STRATEGY FOR DEVELOPING THE ORGANISATION Based on the discussions held, the participants agreed on the following strategic organisational framework to establish the apex organisation; 9.1 Name From the focus group discussions, it was decided and all participants were satisfied with the formation of a national umbrella body (apex organisation) for WICBT which would represent all ICBT. It was understood and agreed by all participants that the apex organisation will ensure that their challenges are addressed and resolved. By the end of the session, after having considered the purpose of the organisation; the participants agreed that the apex organisation will be known as: Buhle Bebunye - Swaziland National Women in Informal Cross Border Trade. The name Buhle Bebunye means the beauty of oneness. It was established that Buhle Bubenye is no longer available for use at the Registrar s Office so it was decided that the name Buhle Bebunye will be used as a tag line and the organisation shall be registered as Swaziland National Women in Informal Cross Border Trade. It was also decided that the registered head office of the organisation will be in Manzini. 9.2 Vision To provide Swaziland s informal cross border traders with a platform to trade nationally; regionally and internationally by ensuring free movement. 9.3 Mission To assist in creating a pleasant environment for members to conduct their informal cross border trade with ease, being profitable and eradicating poverty. 9.4 Values The participants expressed the importance of establishing values for the members and the organisation. It was then agreed that the apex organisation will be committed to upholding the values outlined below. It was also agreed that the members and the organisation will be 16

26 guided by the shared values (as shown in Figure 8) at all times in their internal and external operations. Figure 8: Values of the apex organisation - Buhle Bebunye Service excellence Honesty Continue to look for better ways of doing things Work and represent our members with integrity and honesty Transparency Openness in communication and being fair at all times Commitment To love and be patient with each other Accountability Accountable and respect members, deliver on every promise 9.5 Membership The issue of membership was discussed at length during the focus group discussions since the participants had different views and interpretations of who should be members of the proposed apex organisation. The main issue was whether to allow individuals in their personal capacities to be members of Buhle Bebunye. It was felt that individuals might pull out from their respective associations/organisations and register as individuals in Buhle Bebunye, in their personal capacity. This would mean the individuals are not accountable to any association/organisation, thus avoiding any form of discipline or being reprimanded if they are pulling out because of improper conduct in the association/organisation. This was set out to avoid/minimise any potential inappropriate conduct from individuals in the future, knowing they would be reported to their association/organisation. When an individual is reported for bad conduct, it is expected that the association/organisation they belong to will take appropriate disciplinary action per their code of conduct. 17

27 Nevertheless, after much deliberation it was finally decided that only associations/organisations would be allowed to be members of the apex organisation. Thus, any individual who wants to be part of Buhle Bebunye must be a member of any association/organisation which is an affiliate of Buhle Bebunye; if not, that individual will be advised to join any of the association/organisation which is a member. Participants highlighted the proposed name of the apex organisation Buhle Bebunye speaks to the beauty of unity, oneness with one goal and voice. Thus, individuals are encouraged to belong to an association/organisation to promote unity and oneness. It was also decided that an association/organisation may be informal/formal; legally or not legally established; with or without a constitution the main criteria was that it must be able to prove its existence by showing membership of a minimum of seven (7) members who are ICBTs. It was also noted that some of the organisations which will be members of the Buhle Bebunye are performing the roles of an apex organisation by working as a coalition of minor organisations that are, in most cases, involved with the ordinary masses. The participants pointed out that the involvement of such associations/organisations can strengthen grassroots involvement of the traders. All individual members of the associations/organisations can be part of Buhle Bebunye irrespective of gender or whether their current business activities involve cross border trade assuming they will enter the cross border trade market. It was then resolved that an Interim Committee will have to develop a strategy on how the apex organisation can be involved at regional level. 9.6 Defining WICBT The discussion of the membership led to the importance of defining WICBT. Based on the outcome of the meeting it was decided that WICBT are those that: Cross the border for their income generating activities Are part of the value chain of the ICBT providing goods and/or services Vendors who are customers or suppliers of ICBT 18

28 SADC Member States (2010) 22 agreed on a working definition of ICBT in the Southern African context as follows; Informal Cross Border Trade is any business operating in goods and services that trades across the border and that has no official export/import license/permit within a defined threshold and frequency 23. After much brainstorming for the Swaziland context; this definition was accepted with the addition of other traders (be it suppliers or customers) who are directly affected by the business operations of those in cross border trade. It was also acknowledged that some traders can have some sort of official license/permit to trade as required by the MCIT and the City Council; which will be included in the context of ICBT. It was also recognized that the traders can be individuals, the majority of whom are women, literate or illiterate, and most operate in small quantities on a regular basis. The nature of the informality of the goods and services that the traders provided was assumed to mean small quantities and usually on regular basis. Given the size of their economic activities, it was established that the traders can deliberately conceal their activities from public authorities and are sometimes not detected in official gross domestic product (GDP) statistics. Nevertheless, the crucial role they play in the country s economies was appreciated because they provide income and in some cases employment to many poor households for livelihood/survival purposes. 9.7 Meetings The participants agreed that an Executive Committee shall be elected and the Executive Members will have to meet at least four (4) times during a financial year and a special meeting may be convened by the Chairperson as circumstances may dictate. There will be at least two (2) general meetings for all members per financial year. The quorum for all executive meetings shall be 50% plus one. For annual general meetings, the same rule will apply 50% plus one member in good standing, all having paid the joining fee and up-to date subscriptions in that financial year. 22 SADC (2010) Advocacy Strategy on Informal Cross Border Trade (ICBT); developed at the 1-3 November 2010 at the SADC High Level Policy Meeting on ICBTs, Rainbow Towers, Harare, Zimbabwe. 23 SADC (2010) Advocacy Strategy on Informal Cross Border Trade (ICBT); developed at the 1-3 November 2010 at the SADC High Level Policy Meeting on ICBTs, Rainbow Towers, Harare, Zimbabwe. 19

29 9.8 Executive Committee In choosing the Executive Committee Members, the participants agreed that individuals of a certain calibre must be elected to stand for office. It was decided that any individual elected as an Executive Member must have integrity, be in good standing, must be at least 18 years of age and a member of an organisation that is up-to-date with their subscriptions in Buhle Bebunye. It was further decided that the composition of the Executive Committee shall be 100% women. The decision to have 100% women in the Executive Committee was reached upon realising that as with other sectors, gender inequalities are pronounced in ICBT. The participants resolved that since women make up the majority of informal traders, they are more directly affected than men in the way they make their living thus the 100% women will ensure total representation of their interests. For example, ICBT involves a large degree of travel both within the country as well as across borders, making women more vulnerable to sexual harassment and abuse. There were experiences where women street vendors were continuously harassed by the police and civic authorities who regard their businesses as illegal (WLSA/ SARDC, 1998) 24. These issues can be better handled by women with first hand experiences. It was observed that the SADC Gender Protocol is also critical for women in informal cross border trading, especially Article 17 on economic empowerment which states that: States Parties shall, by 2015, adopt policies and enact laws which ensure equal access, benefit and opportunities for women and men in trade and entrepreneurship, taking into account the contribution of women in the formal and informal sectors. States Parties shall, by 2015, review their national trade and entrepreneurship policies, to make them gender responsive. According to the International Labour Organisation (ILO) (1991,) 25 informal trade is the most important source of employment among self-employed women in sub- Saharan Africa. Since women play a critical role in addressing vital issues of livelihoods such as food and income security through ICBT, it was thus adopted that the 100% executive members shall 100% women. The offices that can be held by the Executive Committee are shown in Figure below. 24 WLSA/ SARDC (1998) Beyond Inequalities: Women in Swaziland; WLSA, ILO (1991). The dilemma of the informal sector. Report of the Director General, Geneva: ILO. 20

30 Figure 9: Proposed organogram President Vice President Executive Secretary Treasurer Organising Officer Three elected members Vice Executive Secretary 9.9 Term of Office The participants decided that Term of Office shall mean all positions in the office as an Executive Committee Member will be for a period of three (3) years. The participants further agreed that each Executive Member may be in office for three (3) consecutive terms after which that member shall take a term s break before being re-appointed to office. 21

31 9.10 Financial Projections After much brainstorming, it was decided that financial sustainability was critical to the success of the proposed apex organisation. organisation is an important milestone and crucial. As such, creating a financially sustainable It was understood that sustainability means the ability to pursue the mission of the organisation, while covering all financial and operational costs from revenues from members and business operations of the organisation, excluding grants and subsidies. However, it was pointed out that the apex organisations might encounter difficulties in realizing this goal due to the small size of the domestic market, especially the number of associations/organisations. It was decided that the apex organisations will engage in income generating activities that would allow them to achieve sustainability. Institution-building support was also considered as the most important (direct or indirect) contribution by Government or donors to the formation of the apex organisation. Institution-building relies mostly on organisational formation, securing office space, salaries for administrator and capacity building for the members. It was concluded that unless donors and Government support them, these institution-building efforts will be insufficient to achieve the desired visible value of establishing the apex organisation. This was further reflected when the financial projections for the first three years were discussed. The projections indicated a deficit (see Table 1) if the organisation has no support from Government or donors to sustain its operational activities. Figure 10: A group discussing joining fees and subscriptions Based on the participants understanding of the importance of sustainability, it was stated that the fees need to be reviewed biannually and discussions on joining 22

32 fee and monthly subscription were negotiated to be: E2, joining fee; and E subscription per month. The participants pointed out that the fees were not to be a hindrance for any association/organisation in joining the apex organisation. It was revealed that the individuals still need to appreciate the importance of paying subscription in their respective associations/organisation. In view of the fees implications on the organisation s financials, it was resolved that the Interim Committee will have to review the fees. Nonetheless, the financial projections for the initial years were discussed. It was observed that the financial projections reflected a deficit. The organisation will need financial injections in order to be sustainable and realise a surplus. Thus, means of alternative sources of revenue are essential; apart from financial interventions from donors and/or government; Buhle Bebunye must embark in income generation activities. In preparing the financial projections, it was assumed that: Associations/organisations who will be members of Buhle Bebunye for the first three years are 10, 15 and 22 respectively. This means that new memberships for the first three years will be 10, 5 and 7 respectively. It was assumed that the increase in members joining on the third year was because of marketing strategies to solicit membership and people s general knowledge of the benefits of being a member of Buhle Bebunye; When preparing the financial projections, the joining fee and monthly subscriptions remained unchanged; No escalation rate/increase has been factored on all the expenses; and During the first three years, the organisation does not have any planned activities for generating revenue. 23