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GEOGRAPHICAL ANALYSIS OF INFORMAL FISH TRADE ROUTES IN
MALAWI AND NEIGHBOURING COUNTRIES
MSc. (GEOGRAPHY & EARTH SCIENCE) THESIS
JABULANI NYENGERE
UNIVERSITY OF MALAWI
CHANCELLOR COLLEGE
JANUARY, 2019
GEOGRAPHICAL ANALYSIS OF INFORMAL FISH TRADE ROUTES IN
MALAWI AND NEIGHBOURING COUNTRIES
MSc. (GEOGRAPHY & EARTH SCIENCE) THESIS
By
JABULANI NYENGERE
BSc. (Forestry) –Bunda College of Agriculture (University of Malawi)
Submitted to the Department of Geography & Earth Sciences, Faculty of Science, in
fulfilment of the requirements for the degree of Master of Science (Geography &
Earth Sciences)
University of Malawi
Chancellor College
January, 2019
DECLARATION
I hereby declare that this thesis is the original research undertaken by me under the
guidance of my supervisors. No part of the study has been presented in any form for
any degree or certificate in another institute of study. I also declare that all references
and assistance received from various people have been duly acknowledged.
JABULANI NYENGERE
___________________________________________
Full Legal Name
________________________________________
Signature
________________________________________
Date
CERTIFICATE OF APPROVAL
The undersigned certify that this thesis represents the student’s own work and effort
and has been submitted with our approval.
Signature____________________ Date_______________________________
Evance Mwathunga, PhD (Lecturer )
MAIN SUPERVISOR
Signature____________________ Date_______________________________
Zuze Dulanya, PhD (Senior Lecturer )
Co-SUPERVISOR
DEDICATION
This thesis is dedicated to the Almighty God whose grace and mercies have seen me
successfully through my education; to my parents, Mr. Kinross Nyengere and Mrs.
Joyce Nyengere for their encouragement, prayers and immense contribution towards
my success in life; and to my siblings: Innocent, Ruth, Justin and the entire Nyengere
family.
ACKNOWLEDGEMENT
While I have written this thesis on my own, it would certainly not have been possible
without a number of people around me. Therefore, I would like to thank the following
people for their spiritual, financial and academic support.
My supervisors Drs. Evance Mwathunga and Zuze Dulanya, for introducing me to the
world of research and for providing feedback on my work. Professor Emmanuel
Kaunda, Dr Sloans Chimatilo, and LUANAR-Fish Node team for ever encouraging
comments and advice. This thesis is funded and supported by WorldFish Centre and
New Partnership for Africa’s Development (NEPAD) and the African Union Inter-
African Bureau for Animal Resources (AU-IBAR).
A special thanks to the entire Nyengere Family for awesome love and inspiration. This
entire thesis has been written while listening.
And finally, thank you Allena Njala for providing love and inspiration of the best kind.
vi
ABSTRACT
The study focused on the geographical analysis of informal fish trade routes in southern
Africa using Malawi and her bordering countries as a test case. Both qualitative and
quantitative approaches were employed. These included semi-structured questionnaires
through personal interviews, key informant interviews with fish border inspectors, and
capturing GPS locations of legal and illegal border post crossing points. Data was
analysed through various techniques. The Principal component analysis was used to
identify significant factors influencing choice of trade route and destination by the fish
trader. Results of the Principal component analysis indicated that route distance,
presence of alternative destination, mode of transport, demand of the fish product, and
personal safety and risks were the factors influencing choice of both trade route and
destination by informal fish traders. Assessment of market attractiveness and market
share for fish products was done using Huff gravity model. The study found that
informal trade has high magnitude represented by 97% of the total annual fish trade
estimates. Fish volumes traded using informal routes are transported from sources to
destinations through routes that bypass the official border sites, thereby avoiding
procedures done at the official border post. Huff gravity model showed that fish traders
consider distance between interacting markets as an important factor in choosing the
final destination. The study also found that inability to carry bulky fish products and
poor infrastructure were the main challenges informal fish traders were facing when
using informal trade routes. The study recommends that informal traders should be
encouraged to trade formally through formal routes in order to maximize profits from
fish trading.
vii
TABLE OF CONTENTS
ABSTRACT .................................................................................................................. vi
TABLE OF CONTENTS ............................................................................................. vii
LIST OF FIGURES ...................................................................................................... xi
LIST OF TABLES ......................................................................................................xiii
LIST OF ACRONYMS AND ABBREVIATIONS .................................................... xv
CHAPTER ONE ............................................................................................................ 1
INTRODUCTION ......................................................................................................... 1
1.1 Background Information ...................................................................................... 1
1.1.1 Informal cross border trade definitions ........................................................ 4
1.2 Problem statement ................................................................................................ 4
1.3 Study Objectives .................................................................................................. 5
1.3.1 Main Objective .............................................................................................. 5
1.3.2 Specific Objectives ........................................................................................ 6
1.4 Research Questions .............................................................................................. 6
1.5 Significance of the study ...................................................................................... 6
1.6 Organization of the study ..................................................................................... 7
CHAPTER TWO ........................................................................................................... 8
LITERATURE REVIEW .............................................................................................. 8
2.1 Chapter overview ................................................................................................. 8
2.2 Theorizing informal cross border trade ................................................................ 8
2.2.1 Behaviour theories ........................................................................................ 9
viii
2.2.2 Political economy theories .......................................................................... 16
2.2.3 Spatial interaction theories ......................................................................... 17
2.3 GIS and its role in geographical analyses .......................................................... 21
2.4 Malawi fish production levels and growth trends .............................................. 24
2.5 Fisheries, Nutrition and Food Security .............................................................. 25
2.7 Fish trade flows .................................................................................................. 29
2.8 Constraints to African Fishery exports and imports .......................................... 34
2.9 Chapter summary ............................................................................................... 35
CHAPTER THREE ..................................................................................................... 38
RESEARCH METHODOLOGY................................................................................. 38
3.1 Chapter overview ............................................................................................... 38
3.2 Conceptual framework ....................................................................................... 40
3.3 Study location .................................................................................................... 41
3.4 Sampling design ................................................................................................. 44
3.5 Sample size ........................................................................................................ 46
3.6 Data collection ................................................................................................... 47
3.6.1 Primary data ............................................................................................... 47
3.6.2 Secondary data............................................................................................ 48
3.6.3 Pretesting/Pilot Survey ............................................................................... 49
3.7 Data analysis ...................................................................................................... 49
3.7.1 Mapping of fish trade routes from source to destination ............................ 49
3.7.2 Quantification of the magnitude of fish trade in informal routes ............... 50
3.7.3 Analysis of geographical factors influencing choice of fish trade route and
destination by the traders ............................................................................ 52
ix
3.7.4 Analysis of the challenges fish traders are facing when using informal .......
trade routes .................................................................................................. 54
3.8 Research ethics................................................................................................... 54
3.9 Chapter summary ............................................................................................... 55
CHAPTER FOUR ........................................................................................................ 57
RESULTS AND DISCUSSIONS ................................................................................ 57
4.1 Chapter overview ............................................................................................... 57
4.2 Characteristics of fish traders............................................................................. 57
4.2.1 Socio-economic characteristics .................................................................. 57
4.2.2 Fish trading documents possessed by fish traders ...................................... 60
4.2.3 Type of fish trader ....................................................................................... 62
4.2.4 Education level of household head ............................................................. 63
4.2.5 Nationality of fish traders ........................................................................... 63
4.2.6 Monthly income from fish trade by the trader ............................................ 64
4.2.7 Level of fish trader in the fish trade business ............................................. 66
4.3 Fish species traded along informal routes and mode of transport ..................... 67
4.3.1 Fish products mostly traded........................................................................ 67
4.3.2 The mode of transportation for fish traders ................................................ 71
4.4 Informal fish trade routes between Malawi and neighbouring countries .......... 73
4.4.1 Mwanza border site..................................................................................... 77
4.4.2 Mchinji border site ...................................................................................... 78
4.4.3 Karonga (Songwe) border site .................................................................... 80
4.4.4 Mulanje (Muloza) border site ..................................................................... 82
4.5 Overall magnitude of formal and informal cross border fish trade ................... 83
4.6 Factors influencing route choice and destination ............................................... 85
x
4.6.1 Route choice factors .................................................................................... 85
4.6.2 Destination choice factors .......................................................................... 89
4.7 Challenges facing informal cross-border fish traders ...................................... 102
4.8 Chapter summary ............................................................................................. 105
CHAPTER FIVE ....................................................................................................... 107
CONCLUSIONS, IMPLICATIONS AND RECOMMENDATIONS ...................... 107
5.1 Chapter overview ............................................................................................. 107
5.2 Conclusions ...................................................................................................... 107
5.3 Implications of the study’s conclusion ............................................................ 110
5.4 The study’s recommendations ......................................................................... 111
REFERENCES .......................................................................................................... 113
APPENDICES ........................................................................................................... 125
xi
LIST OF FIGURES
Figure 1: Structural view of informality ...................................................................... 10
Figure 2: Legalist view of informality ......................................................................... 12
Figure 3 : Rational choice view of informality ............................................................ 13
Figure 4: Rational legalist view of informality ........................................................... 14
Figure 5a & b: Artisanal fish Production in Malawi.................................................... 24
Figure 6: Map showing fish flows in East and Southern Africa for selected species .. 32
Figure 7: Underlying theories informing the study...................................................... 36
Figure 8: A flow-diagram describing the research model ........................................... 39
Figure 9: Conceptual framework showing the dependent and independent variables for
the study ........................................................................................................ 41
Figure 10: Map showing the border sites where data was collected............................ 43
Figure 11: Demographic and socio-economic characteristics of the respondents ....... 59
Figure 12: Household size of the respondents ............................................................. 60
Figure 13: Type of fish traders in cross border trade ................................................... 62
Figure 14: Highest education levels attained by the fish traders ................................. 63
Figure 15: Nationality of fish traders ........................................................................... 64
Figure 16: Level of the fish trader in cross border tradde ............................................ 67
Figure 17: Main fish products exported by Malawi..................................................... 68
Figure 18: Main imported fish products between Malawi and neighbouring countries
...................................................................................................................................... 69
Figure 19: Reasons for fish preferences among fish traders ........................................ 70
Figure 20: Available modes of transport used by fish traders ..................................... 72
Figure 21: Fish trade routes connecting fish sources and destinations ........................ 74
xii
Figure 22: Informal fish trade routes in cross border fish trade (with extracts a, b, c and
d) .................................................................................................................................. 76
Figure 23: Factors influencing fish trader’s choice for informal trade routes and
destination .................................................................................................................... 94
Figure 24: Overall market attractiveness among the interacting locations .................. 99
Figure 25: Markets with highest total attractiveness per border post ........................ 101
Figure 26: Challenges fish traders are facing in cross border fish trade .................... 103
xiii
LIST OF TABLES
Table 1: Export and import requirements for cross border fish trade .......................... 30
Table 2: Trading documents possessed by cross border fish traders ........................... 61
Table 3: Income from fish trade by the respondents.................................................... 65
Table 4: Annual informal trade volumes in cross border fish trade ............................ 84
Table 5: Annual formal trade volumes in cross border fish trade ................................ 85
Table 6: Final factors, items, loadings, communalities and Eigen values ................... 88
Table 7: Final factors, items, loadings, communalities and Eigen values ................... 89
Table 8: Huff gravity model market attractiveness and market share for cross border
fish trade ......................................................................................................... 95
Table 9: Challenges faced by fish traders .................................................................. 104
xiv
LIST OF APPENDICES
Appendix 1: Research ethics ...................................................................................... 125
Appendix 2: Fish species and products mostly traded ............................................... 126
Appendix 3: Fish species, sources, destination and quantities traded (Mwanza) ...... 128
Appendix 4: Fish species, sources, destination and quantities traded (Mchinji). ...... 130
Appendix 5: Fish species, sources, destination and quantities traded (Karonga- Songwe)
................................................................................................................ 132
Appendix 6: Fish species, sources, destination and quantities traded (Muloza). ...... 134
Appendix 7: Magnitude of fish trade ......................................................................... 136
Appendix 8: Study Questionnaire .............................................................................. 140
xv
LIST OF ACRONYMS AND ABBREVIATIONS
FAO : Food and Agriculture Organization
NSO : National Statistical Office
ICBT : Informal cross-border trade
GoM : Government of Malawi
LDCs : Least Developed Countries
SSA : Sub-Saharan Africa
GPS : Geographic Positioning System
NEPAD : New Partnership for Africa's Development
AUIBAR : African Union – Interafrican Bureau for Animal Resources
COMESA : Common Market for Eastern and Southern Africa
STR : Simplified Trade Regime
1
CHAPTER ONE
INTRODUCTION
1.1 Background Information
Africa is rich in freshwater systems comprising natural lakes, man-made lakes or reservoirs
and rivers giving a backbone for the fisheries sector. The major lakes include Albert,
Bangwuelu, Chad, Chilwa, Edward, George, Kivu, Kyoga, Malawi (Nyasa), Mweru,
Tanganyika, Turkana, and Victoria (Ogutu-Ohwayo, 2004). The lakes provide several fish
species and products in different forms including frozen Tilapia, sun-dried sardines,
smoked catfish, and canned Tuna, among others. Fish and fishery products are ranked
among the most traded food commodities globally, with developing countries accounting
for the bulk of the world’s fish exports (FAO, 2012). Fish and fishery products exported
from developing countries comprise 20% of all agricultural and food processing exports
hence making the fish industry export-oriented. Malawi’s Engraulicypris sardella (Usipa)
is marketed largely in its sun-dried form, together with small pelagic species of other
African lakes as they contribute significantly to dietary protein throughout central and
southern Africa. However, for many years Food and Agriculture Organization (FAO) has
warned nations about the detrimental effects a too large export of fish may have on the
people around the lake for countries with large fish exports (Jansen, 1997).According to
National Statistical Office (NSO, 2016) the general trend in net fish exports and imports
2
shows that Malawi imports more fish products than exports from neighbouring countries
like Zambia, Mozambique and Tanzania. Much as imports surpass exports, species specific
data has shown that Malawi export more small pelagic fish products. Mapping of fish flows
by Kirema-Mukasa (2012) indicated that Malawi is a net producer and exporter of fish
products for specific fish species but remain a net importer in terms of total cross border
fish trade. Although it is hitherto difficult to conclusively assess the impact of the export-
oriented fishing industry, there are sufficient indicators that substantial population groups
that depended on the traditional fisheries in the past have lost out on increased fish per
capita consumption (Fulgencio, 2009). Thus, the globalization of the fish industry has
heightened malnutrition and food insecurity within millions of poor people (Töpfer, 2002).
Therefore, the high demand of most African fish products from African countries has
resulted into withdrawal of these species from the local market onto the regional market
hence exacerbated food insecurity.
The export and import fish industry in Africa makes use of important trading corridors in
Africa, particularly in inland areas, where trade is less likely to enter the official statistics
hence informal trade. Those that enter into official statistics follow all the requirements to
export and import fish as well use formal routes passing through official border sites from
one country to another. Contrary to cross border formal trade, some fish traders enters in
Informal cross border trade (ICBT) using informal routes that bypasses the border post.
Informal cross-border trade (ICBT) refers to trade in legitimately produced goods and
services, which escapes the regulatory framework set by the government, as such avoiding
certain tax and regulatory burdens (OECD, 2007).In some areas, fish is an important part
3
of this trade, with the Democratic Republic of Congo (DRC) and Nigeria being particularly
important markets. Important suppliers for ICBT in fish are Lake Victoria and various
coastal and inland West African countries (Gordon et al, 2011). Some of the ICBT follows
historic trading routes, and the same country may be both an important importer in one
district and an exporter from another. Data on ICBT are extremely poor and few relevant
studies exist. However, one study points to the potential significance of such trade. Neiland
and Béné (2004), cited in Neiland (2006), document trade flows of 100,000 metric tons per
year of dried fish from the Lake Chad fishery to cities in southern Nigeria. Unclear
evidence, specifically without fish species and quantities traded also reports significant
trade flows from northeast Zambia into Lubumbashi in southern DRC, and similar flows
are likely to cross borders into other countries within Africa. Fish imports to Malawi
include mainly sundried salted marine and freshwater products, frozen freshwater fish and
canned fish (GoM, 2014). Fish meal is one of the most stable import commodities in Africa
with 150-300 tons per year and most years contributing with about 25% of the total value
of imported fisheries products (Serangelli and Cirelli, 2010).
Against this background, the study aimed at investigating the fish trade routes, magnitude
of trade through informal routes that fish traders use in Malawi and neighbouring countries.
This will inform policy makers on movement of fisheries products across Africa region
and their impacts to local and international consumption. The findings will also contribute
to the few studies on informal fish trading and socio-economic development in Malawi and
Africa under the fish trade project and beyond.
4
1.1.1 Informal cross border trade definitions
Nduru (2004) described ICBT as an important form of trade contributing a substantial
percentage of economic activity in the southern African economy even though it is almost
entirely undocumented. “Cross-border traders in southern Africa are called ‘informal’
because, generally, they travel with their goods, operate on a relatively small scale, do not
access preferential tariff agreements, often buy and/or sell in informal sector markets, do
not always pass through formal trade routes and may be involved in smuggling”(Peberdy,
2002).
Informal trade has been defined in different contexts depending on the scale of trade and
study interests (Tekere et al., 2000). This study adopted the concept of informal trade as
used by Scheele (2004) in relation to cross border trade who reported that “informal trade
relates mainly to border areas, undeclared overland trade between neighbouring countries”.
Informal trade, therefore, often invades taxation. Taxation has often been regarded as a
characteristic of formal trade rather than informal trade (MacGaffey, 1987). In this study
focusing on informal trade, formal trade routes are defined as the trade routes where the
fish traders follow all bureaucratic formalities and taxes to trade the fish products from one
place to another. (Odegaard, 2008).
1.2 Problem statement
Much of Malawi’s population is dependent on fisheries directly or indirectly as source of
food security, livelihood and income (GoM, 2014). Fish remain the biggest source of
animal protein with 70% contribution to the total animal protein consumed by Malawians
5
(Nagoli et al, 2009). Despite its significance, the distribution of fish products in Malawi’s
outlets is uneven and most fish products are traded informally (Teklu, 2015). Availability
of fish products are not uniform among fish markets. This can partly be attributed to
economic, and geographical factors (Hodgson, 2004). Hodgson et al,(2004), geographical
factors e.g. route distance, route accessibility, mode of transport, location of the final
destination, and nature of the roads play a crucial role in a trader’s choice of routes from
one place to another. However, most studies on trade routes have focused on relevance of
the formal routes in the distribution of the fish products from sources to various destination
(Mussa et al, 2017). These studies do not often consider the nature and geography of the
cross border informal fish trade routes as well as respective magnitude of this trade between
Malawi and other countries (Makombe, 2011). It is against this background that the study
aimed at undertaking the geographical analysis of informal fish trade routes for cross
border trade in Malawi. The aim was to understand the network of informal trade routes,
magnitude of the informal trade, challenges faced by informal fish traders, and
geographical factors influencing the traders to use informal trade channels for policy
support.
1.3 Study Objectives
1.3.1 Main Objective
To examine the geography of informal fish trade routes in Malawi and the
neighbouring countries.
6
1.3.2 Specific Objectives
To map informal fish trade routes between Malawi and her neighbouring countries.
To estimate the magnitude of fish products traded using informal fish trade routes
between Malawi and her neighbouring countries.
To analyse the geographical factors responsible for the choice of informal fish trade
routes and destinations between Malawi and her neighbouring countries.
To analyse the challenges fish traders face when using informal trade routes.
1.4 Research Questions
What are the informal fish trade routes that fish traders use between Malawi and
her neighbouring countries?
In terms of quantity and value, how much fish is traded using informal routes
between Malawi and her neighbouring countries?
What geographical factors influence the choice of informal fish trade routes and
destination by the traders?
What challenges do informal fish traders face when using informal trade routes
from various sources to destination?
1.5 Significance of the study
This study is significant considering that it documents the existing informal trade routes,
factors influencing fish traders to choose informal trade routes, magnitude of informal trade
and challenges fish traders faces when using informal trade routes. Knowledge of the status
of trade routes will promote establishment of interventions to strengthen transportation and
7
products delivery to the final destinations to ensure availability of fish products to target
markets using formal routes.
In addition, the knowledge generated from the study will help inform policy makers and
the development partners on the formulation and implementation of appropriate policies
that will promote fish trade in Malawi and other countries by taking into account the status
of the trade routes fish traders are using so that the distribution should be even. The
mapping of the informal trade routes will help the government of Malawi to improve data
and revenue collections for all fish species involved in trade. The study will also contribute
to the few studies on informal fish trading and socio-economic development in Malawi and
Africa on existing fish trade scholarship and further debate on informal fish trade.
1.6 Organization of the study
This study is organized into five chapters. Chapter one deals with the background to the
study, discusses the research problem and research questions that arise. The aim, objectives
and the justification for the field based research component of this study are also given
attention in this study. Chapter two reviews the literature relevant to the study with the use
of informal trade theories. Chapter three details the design of the study and methodology
used. The fourth chapter presents and discusses the results of the study. The final chapter
makes conclusions of the study and also offers recommendations for further work based
on the findings in the research.
8
CHAPTER TWO
LITERATURE REVIEW
2.1 Chapter overview
This chapter presents the literature, both empirical and theoretical that is relevant to this
study. The review helps bring out comparisons of the results of preceding studies and the
findings generated in this study. In terms of underlying theories, the study draws its
theoretical framework from the behavioural, political economic, and spatial theories for
cross-border trade. These theories measure trade concentration and flow directions as a
response to different economic and geographic factors. The theoretical framework that
explains the traders’ decision to operate through informal trade routes (informal economy)
is drawn from the theories of informality.
2.2 Theorizing informal cross border trade
The study reflected on theories resting on variables such as the behaviour of persons, or
economic, societal and political influences. The theories help in understanding the
arguments by different authors on informal cross border trade and also reveal the
theoretical framework of this study.
9
2.2.1 Behaviour theories
Behavioural theories focus on the study of specific behaviours in a society. This is where
there is an understanding that behaviours can be conditioned in a manner that one can have
a specific response to specific stimuli. Building on the basis of this theory, cross border
traders show behaviours in response to situation they are facing along the routes from
sources to destination.
In this review, the fish traders respond to various stimuli that influence them to make
decisions when exporting and importing fish products from sources to destination. Various
behavioural theories including structuralist, legalist, rational choice, rational legalist and
survivalist were reviewed in understanding the growth of informal cross border trade.
These behavioural theories have shown perspectives that influences growth of informal
trade.
2.2.1.1 Structuralist theory
This approach emphasizes the importance of the informal sector to the global economic
system through the ability to keep the costs of labour under control. Structuralist theory
acknowledges the inter-connectedness and inter-dependency that make the informal sector
a necessary segment of economy both at national and international point of view. Scholars
argue that the structuralist theory is influenced by class-based assumptions of the neo-
marxist economic theories (Rakowski, 1994). The Marxism thought explains that rich
capitalists advance their personal interests by exploiting the poor hence making
structuralists explore the relationship existing between formal and informal traders
10
(Gardener, 2008). This understanding therefore displays a positive relationship between
informality and inequality. According to Davey and Valodia (2009), the structuralist theory
is relevant because it enables governments to make policies that boost the formal economy,
however this shows how the exploitative nature of the capitalist system results in growth
of the informal economy.
Figure 1: Structural view of informality (Source: Jamela 2013: 23)
The structuralist view of informality argues that the problem lies in the nature of capitalist
system (Figure 1). The nature of the capitalist system allows those at the centre of economic
system to exploit those at the periphery in order to advance their own interests. This
understanding through structuralist theory justifies the situation where economic policies
that are made, mostly promote the formal economy while neglecting the informal economy.
According to Gardener (2008), the structuralist school stresses that, as a result of
exploitation, labour shifts from the formal into the informal sector which is characterized
by individuals that are usually self-employed and may have specialized functions within a
value chain. This identifies the cause of the unregulated nature of the informal sector
specifically in cross border fish products using various trade routes. In this research,
structuralist perspective helps to underscore the understanding that growth of informality
Capitalist
system
Informal
economy Exploitation
11
in general, and informal fish trade, in particular, could be attributed to the exploitative
nature of the capitalist system.
2.2.1.2 Legalist theory
Jamela, (2013) reported that the legalist approach is based on a neo-liberal school of
thought arguing that the informal sector is a result of excessive and inefficient government
regulations. This means that traders fail to comply with the set bureaucracy thereby tending
to go informal (Kirshner, 2009). The legalists believe there is clear difference between
formal and informal trade and the informal trade will get absorbed by the formal sector
when it becomes effective and efficient (Jamela, 2013). Legalist approach focuses on the
negative aspects of informal sector. These negative aspects put informal trade as associated
with illegal activities and the governments believe that intervening through stringent
bureaucratic strategies could deal with informal activities and encourage the growth of
formal trade of the economy. Gardener (2013) highlighted that conducive economic
policies allow for the informal sector to serve as a start-up zone for businesses that will
eventually formalize and contribute to economic growth equality. On the other hand,
restrictive policies lead to an evasive informal economy and then stalled growth and
inequality. However, in effort to escape the deterring policies, the traders will cunningly
dodge formalizing their businesses. The dodging will hinder growth of the formal economy
while the informal continues one to grow. In this regard, informal fish traders escape formal
trading regulations through use of unchartered routes that bypass the border points
(Kirshner, 2009). Arguably, therefore, informal fish trade could be a product of excessive
12
and inefficient government regulations. Figure 2 shows the legalist view of the informal
economy.
Figure 2: Legalist view of informality (Source: Gardener 2008)
2.2.1.3 Rational choice theory
Rational choice theory was basically developed to explain the behaviour of humans basing
on the assumption that individuals always act to maximize utility given the available
information on the costs and benefits of such action (Gardener, 2008). The theory suggests
that there are many reasons that influence the decision of the trader to choose formal and
informal trade (Schneider & Enste 2002). The influencing factors go beyond economic but
also personal and geographic factors hence the assumption that formal and informal sectors
are separate (Jamela, 2013). They conclude that explanations of entry into informal sector
should be considered from other angles instead of economics. Rational choice theory
Conducive
policies
Informal
economy
starts
Economic
growth
equity
Restrictive
policies
Informal
economy
evasion
Stalled
growth
inequality
: Legalist view of informality
13
argues that traders make personal choices that will enable them to maximize the utilization
of the environment they find themselves in. Figure 3 demonstrates the rational choice view
of informality showing that economic factors combined with personal judgment of what
will benefit the actor more leads to traders entering in either the formal or informal sector
which are assumed to be separate entities. The involvement of the trader in informal sector
is therefore a natural result of personal choices to maximize utility(Kirshner, 2009).
Figure 3:Rational choice view of informality (Source: Gardener 2008)
2.2.1.4 Rational legalist theory
This approach takes into account the rational choice and the legalist theories as a combined
view towards informality. The rational legalist theory argues that actors consider all costs
(social and opportunity costs) involved before going through the process of formalizing.
This theory predicts the effect that the informal activity will have on a country’s overall
economic growth by showing that incentives provided by the economic environment
influence traders decision to use informal economy only as a start-up point and formalize
Constraints
and
incentives
Utility
maximization
Enter
formal
sector
Enter
informal
sector
14
leading to economic growth. On the other hand, the constraints posed by economic
environment will influence traders to enter the informal sector with intention of escaping
the constraints of formalizing hence stagnating economic growth (Jamela, 2013). Rational
legalist theory views formal and informal economies as separate (figure 4). In this regard,
it can be argued that those engaged in informal fish trade make personal choices that have
potential to maximise their utilization of the environment.
Figure 4: Rational legalist view of informality (Source: (Gardener, 2008))
This study draws a lesson from rational legalist theory that the constraints posed by
economic environment will influence traders to enter the informal sector with intention of
escaping the constraints of formalizing. Traders, in this case informal fish traders, therefore
make choices to use informal trade routes basing on factors that maximize their utility
regardless of what is deemed legal or illegal by the law (Gardener, 2008). The theoretical
Evasive
informal
economy
Economic
growth
Stalled
growth
Incentives
and
Constraints
Start-up
informal
economy
15
background highlighted in this section in relation to informal sector provides a basis for
the study and definition of informal cross border trade and trade routes.
2.2.1.5 Survivalist theory
The reviewed literature describes a survivalist trader as an uneducated individual (a school
dropout) who is pushed into business by unemployment and poverty (Davis, 2006). The
survivalist business is described as unprofitable, informal, unsustainable and as a buffer to
poverty and unemployment. Put differently, the business is a means of just providing for a
family, while it generates minimal income and no contribution to the economy as such.
According to Davis (2006), Informal entrepreneurship was seen as “largely unregulated,
low paid, precarious and insecure work conducted by marginalized populations excluded
from the formal economy” and, therefore, a survivalist practice remain an adaptive strategy
for those who could not find formal employment. This highlighted informal
entrepreneurship as a survival practice conducted out of necessity and as a substitute for
formal employment and pursued due to absence of other opportunities, hence taking the
trade as a survival mechanism (Valenzuela, 2001).
This study also obtained lessons from the survivalist theory whereby individuals use
informal entrepreneurship as a survival practice and substitute for formal employment. In
this regard, fish traders pursue survival mechanism due to absence of other opportunities.
16
2.2.2 Political economy theories
Theories of political economy explain production and their links with custom, government
and law (Anderson, 2011).These theories show how competing groups in the community
determine courses of action that will give most beneficial results. Chandra et al (2010)
summarized that political economy theories talk about the different but linked approaches
to defining and studying economics and other related behaviours. With regards to political
economy theories, there was the need to examine the courses of action that informal traders
undertake to maximise outputs from trade of fish products through informal routes.
2.2.2.1 The neo-classical theory
The neo-classical theory of migration combines a macroscopic approach focused on the
structural determinants of flow of things from source to destination, and a microscopic
approach based on the study of individual behaviour. At macroscopic level, products flow
as a result of uneven geographical distribution of capital and population. This reflects
disparities in net profits, and movement of products is therefore generated by supply push
and demand pull. The neo-classic theory overlaps with the gravity model based on the
influence of supply and demand on flow of products from sources to destination.
The microscopic approach to the neo-classical theory postulated by Todaro and Borjas in
the 1960s and 1970s examines the reasons prompting individuals to respond to structural
disparities among countries by selling products to other markets. Choice of final destination
including market therefore flows from an individual decision taken by rational players
anxious to improve their profits by selling the products to places that offer higher utility. It
17
is a voluntary decision taken in full awareness of the facts after a comparative analysis of
the costs and benefits of their actions. Migrants including fish traders will therefore choose
the destination where expected net benefits will be the greatest.
2.2.2.2 The dual labour market theory
The dual labour market theory shoulders two trade sectors with two dissimilar labour
markets thus formal and informal. In the formal sector workers and traders enjoy higher
earnings, better employment security and personal security of unions and necessary
working and trading infrastructure. On the other hand, Saint-Paul (1996), described
informal sector in relation to dual labour market theory as a sector comprising a large
portion of the unemployed; black women being the major participants in the informal
sector.
2.2.3 Spatial interaction theories
Spatial interaction is defined as a dynamic flow process from one location to another in
response to localized supply and demand. Rodrigue (2017), described a spatial interaction
as a realized movement of people, freight, goods or information between an origin and a
destination where there is a transport demand/supply relationship expressed over a
geographical space. It involves the movement of human beings such as intra-urban
commuters or intercontinental migrants but may also refer to traffic in goods such as fish
products (Ullman, 1980). Anderson and Yotov (2010) described spatial interaction as a
transportation supply and demand relationship that is often expressed over a geographical
space. There are three main principles for spatial interaction describing reasons for why
18
things move namely: complementarity, transferability, and intervening opportunity
(Anderson, 2011).
Complementarity describes the presence of a demand or deficit at one location and a supply
or surplus at another thus a deficit of a good or product in one place and a surplus in another.
Complementarity is the main requirement for trade to take place: demand or surplus of a
desired product in one area and a shortage or demand for that same product in another area.
However, studies by Ullman (1980) indicate that the greater the distance, between trip
origin and trip destination, the less likelihood of a trip occurring and the lower the
frequency of trips in cross border trade.
Transferability explains the associated cost of overcoming distance measured in real
economic terms of either time or travel cost. It explains the likelihood of transport of the
good or product at a cost that the market will tolerate. Basing on the concept of
transferability, the cost of overcoming distance is known as the “friction of distance.” Thus,
if the friction of distance is too great, interaction will not occur in spite of a complementary
supply-demand relationship between the two locations. Friction of distance depends on
prevailing transportation technology and the price of energy. In this case, Haynes and
Fotheringham (1984) observed that the friction of distance has decreased over time which
is the prime factor in globalization.
Intervening opportunity states that the number of persons going a given distance is directly
proportional to the number of opportunities at that distance and inversely proportional to
the number of intervening opportunities (Stouffer, 1940). This theory is considered as the
19
reason for a lack of interaction between two complementary locations. However,
complementarity will only generate a flow if there is no intervening, or closer, location.
The flow of goods that would otherwise occur between two complementary locations may
be diverted to a third location if it represents an intervening opportunity, a closer
complementary alternative with a cheaper overall cost of transportation (Rodrigue, 2017).
Fish traders will therefore target routes and destinations with potential of providing
opportunities with alternative markets that are associated with cheaper cost of transport.
2.2.3.1 Gravity model
The gravity model assumes that the trips produced at an origin and attracted to a destination
are directly proportional to the total trip productions at the origin and the total attractions
at the destination (Cheng & Wall, 2005). According to Constantin (2004), gravity models
in regional economics state that the interaction between two centres is in direct proportion
to their size and in inverse proportion to the distance (at a certain power) between them.
Gravity model finds its application in a wide variety of studies, such as those devoted to
migration, commodity flows, traffic flows, residence-workplace trips, and market area
boundaries.
2.2.3.2 Huff’s Model
Huff, (1964), was the first to propose Reilly’s law, a spatial-interaction model for
estimating retail trade areas. Huff argued that traders have a number of alternative
destinations, they may visit different destinations to maximize their utility rather than
restricting their patronage to one destination. Every destination within the geographic area
20
with which the trader is familiar has some chance of being patronized from the source using
the chosen route. Thus, Huff conceived trade areas to be probabilistic rather than
deterministic, with each destination having some probability of being patronized. This one
is positively related to the size of the destination and decreases with distance.
The study adopted Huff gravity model when assessing market attractiveness and market
share of fish markets because of (1) its ease of use (Park et al., 2006; Luv et al., 2008) and
(2) the accuracy of its predictions (Drezner and Dressner, 2002). Huff model has been
recommended as the best model in predicting the market potential of shopping centres or
trading markets (Huff and Blue, 1966).
2.2.3.3 The Competing Destinations Model (CDM)
The competing destinations model was proposed by Fotheringham in 1983 through a
derived approach from spatial considerations. CDM provides dealing with challenges
associated with logit and nested logit models for choice models within spatial theories. The
competing destinations model assumes that there is a limit to an individual’s ability to
process large amounts of information. , spatial choice is likely to result from a hierarchical
information-processing strategy whereby a cluster of alternatives is first selected. A
different approach takes into account that the likelihood of a particular alternative being in
the restrictive choice set is a role of the dissimilarity of that alternative to all other available
choices (Vicéns, 1995).
The theories explain the reasons for thriving growth of informal trade over a geographical
space through informal routes. This understanding connect with the use of geographic
21
information system in ascertaining interactions between products sources and destination
using preferred routes hence GIS playing crucial role in spatial analysis.
2.3 GIS and its role in geographical analyses
GIS is one of many information technologies that have transformed the ways geographers
conduct research and plan for activities in communities (Al-ramadn, 2002).It is a
technological tool for comprehending geography and making intelligent decisions (Sutton
et al, 2004).Through GIS, ability to input, analyse, and identify patterns makes geographers
relevant in conversations about transport, public health, urban planning, and protecting the
environment. GIS has so many areas of applications, for example, Gupta et al,(2003)opined
that geographers bring GIS tools to bear on environmental problems through mapping
sensitive environmental areas and identifying potential sources of pollution in the
proximity.
GIS finds its application in various fields like energy and climate change, community
mapping and analysis, spatial justice and social inequality, political redistricting and voting
rights, food production, access, and equity, health, housing, international development and
humanitarian relief, land and wildlife conservation, natural disasters - risk and vulnerability
analysis, urban growth management planning, water systems, science and society, trade
and communication(Bähr, 2000).In transport and urban planning, GIS technology has
opened up new horizons in transportation planning and especially in travel demand
modelling and routing(Alterkawi, 2001). This is where GIS provides the tool a
transportation planner would need to convey ideas and present implications of planning
22
decision for non-planners visually. According to Gupta et al. (2003) GIS offers a means
of communication that allows for an interactive understanding between the
public and transportation professionals. Alterkawi, (2001) established that GIS technology
has developed an essential tool for the most effective use of spatial data.
GIS also find its apparent role in geography analysis by allowing users to merge data with
other datasets using the spatial linkage (Weber, 2000). Alterkawi, (2001) opined that the
first level is often to merge the data with basic topographic data such as roads and contours.
For instance, the study by Weber (2000) in a survey of mechanical peat digging in the
Sperrin mountains in Northern Ireland showed that when the locations were plotted on a
map it was easy to see that most were on the less steep and lower ground within the area.
However, using the additional functionality in a GIS it was also possible to establish buffer
analysis for more analysis of the features.
GIS also provides room for querying and analysis. Through querying, the stored
information either spatial data or associated tabular data can be retrieved with the help of
Structured/Sequential/Standard Query Language (SQL) (Clarke, 2000). SQL command
automatically accesses tables with relevant attributes specified by user’s query combining
them to form a temporary combined table. Once the query is finished, the table is deleted.
Both simple and sophisticated queries utilizing more than one data layer can provide timely
information for geographers and other analysts to have overall knowledge about the
situation for informed decision making.
23
Overlay analysis is another analytical capability of GIS where different data layers are
integrated for geographical analysis. At its simplest, this could be a visual operation, but
analytical operations require one or more data layers to be joined physically. This overlay,
or spatial join, can integrate data on soils, slope, and vegetation, or land ownership
(Alfadhli et al, 2015). This will be helpful to understand the different behaviour of the
situation on different parameters. In proximity analysis, GIS software can support buffer
generation that involves the creation of new polygons from points, lines, and polygon
features stored in the database (King, 1998).
Furthermore, the ability of most GIS software to provide many basic transportation models
and algorithms may also be useful in specific situations including route mapping
(Alterkawi, 2001). According to Weber, (2000) the ability to link up to external procedures
and software also provides possible options, as these procedures can access data within the
GIS and present the results of analysis to the GIS for viewing and analysis of geographical
parameters. Understanding of the linkages between GIS and various fields including trade
through basic transportation model gave a basis of part of the study to adopt GIS Huff
Gravity model in assessing market attractiveness and associated market shares. The use of
GIS Huff gravity model considers fish sources to destination and distances, however,
attention to fish production levels and growth trends becomes important in interpreting the
interactions in relation to demand and supply.
24
2.4 Malawi fish production levels and growth trends
Malawi’s fish production from the capture fisheries has been facing declining growth over
the years (GoM, 2014). The decline in the overall production is attributed to the drop in
catches in the main fishing bodies such as Lake Malawi (Figure 5a) following overfishing
caused by increased demand and the use of illegal gears such as mosquito nets (GoM,
2014). It is apparent nevertheless that whilst increases in production have been observed
in some of the periods, the general trend of production has been declining. The episodic
increase in the production levels is attributed to increased catch of Engraulicypris sardella
(Usipa) which is influenced by climatic changes at the lake (GoM, 2014).According to
CYE (2008) and Phiri et al (2014), overexploitation of the cichlid Oreochromis spp.
(Chambo) has been reported as the main reason for the decline in production levels from
the commercial small-scale fisheries.
Figure 5a & b: Artisanal fish Production in Malawi. (Source: (GoM, 2014))
0
20000
40000
60000
80000
100000
120000
2003 2008
Ton
s
Year
Total tonsLake Malawi ArtisanalLake ChilwaLake ChiutaLake Malombe
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2003 2005 2007 2009 2011
Lake Chilwa Lake Chiuta
Lake MalombeFigure: 5bFigure: 5a
25
The overall decline in the production of capture fisheries has resulted in a gap arising
between supply and demand of fish thereby affecting trade in fish products. Figure 5b
shows the fluctuating pattern for capture fisheries production for small lakes within
Malawi. The low supply of fish has resulted in a lower per capita fish consumption level
of 5.46 kg, which is less than the recommended consumption level of 13-15kg per year by
WHO (GoM, 2014). The major fish species farmed by these fish farmers include Tilapia
rendalii (Chilunguni), Oreochromis shiranus (Makumba), O. karongae (Chambo) and C.
gariepinus (Mlamba) (Njaya, 2006). After catch from Malawian waters the fresh fish is
usually preserved in ice and transported to different selling points where they are sold at
open spaces, and few super markets (Kapute et al,, 2012).
2.5 Fisheries, Nutrition and Food Security
The fishery sector of most African countries consists of capture fisheries and aquaculture.
Capture Fisheries and aquaculture play an important role in providing food and income in
many developing countries (Kawarazuka and Béné 2011). The sector generates a variety
of benefits including nutrition and food security, livelihoods, employment, exports and
foreign currency and conservation and biodiversity value that are of global significance
(FAO–WHO, 2011). As of 2010, fishery production in Africa was estimated at 9.4 million
tonnes comprising of 4.9 million tonnes from marine capture fisheries, 2.7 million tonnes
from inland water fisheries and about 1.4 million tonnes from aquaculture (FAO–WHO,
2011). The aquaculture sector contributes negligibly to total fish supplies but growing at
about 10% per annum (Mapfumo, 2015). Fish and fishery products are highly nutritious
and contain high percentages of animal protein with several other nutrients such as vitamins
26
A, B, E and K and they are good sources of some minerals like calcium, phosphorus and
iron (Dalin et al, 2013). In Malawi, fish and the fisheries sector are of great social and
economic importance due to their significant role as a source of nutrition, income and
employment. At country level, fish provides over 60% of the dietary animal protein intake
of Malawians and 40% of the total protein supply (Phiri et al, 2011).
Most fish products consumed in Africa falls into the “low-value” group commonly referred
as small pelagic fishes, as defined in Fish to 2020. However, Kurien (2005) pinpointed out
that the small pelagic fishes play important role in ensuring food and income security in
Africa by providing important sources of proteins and income. In terms of fish
consumption, the overall world fish consumption has been increasing over the years, with
per capita fish consumption estimated to be around 16% (Russell et al., 2008). However,
many African countries have per capita consumption rates well below world averages, and
those rates are declining (Speedy, 2003).
Abila (2002a) reported that catches of most species are showing downward trends due to
overfishing to meet the greater demand for fish in the export market and for fishmeal, as
well as for domestic consumption. This demand for improved quality products in
accordance with standards in international markets has a great influence on the local supply
chain organization (Thorpe and Bennett 2004). Such is the case in most African countries
following trade liberalization which has led to an increase of food imports into the country
and caused food dumping in local markets, hitting the country’s own farmers.
Liberalization has also led to an increase in the prices of fisheries products, putting them
27
beyond the reach of most rural communities (Madeley, 2000). A similar trend has been
observed in Malawi where several studies have revealed that per capita fish consumption
has been declining over the years despite fish being one of the most important sources of
animal protein, accounting for an estimated 60% of the total animal protein consumed
(Russell et al., 2008). Per capita fish consumption in the 1970s was 13-14 kg, with the
current per capita consumption at 7.3kg per year which is less than what is recommended
by the World Health Organization (WHO) of 13-15kg per year (Kapute et al,, 2012).
2.6 Fish production and trade in fish products
Lakes and aquaculture farms provide significant supply of fish products in Africa.
Additionally, the large lakes of Eastern and Southern Africa are important natural resources
that are heavily utilized by their bordering countries for transportation, water supply,
fisheries, waste disposal, recreation and tourism (Odada & Olago 2002). The fisheries for
small pelagic fish in Africa’s Great Lakes are among the most important on the continent,
supplying dried fish (variously known as kapenta, usipa, dagaa or omena according to
species and region) to markets throughout much of East and central/southern Africa (Abila,
2002b).
The fish stocks of Malawian waters are undoubtedly among the most important natural
resources contributing 60% of animal proteins locally (Matiya et al., 2005). The largest
water body providing most of the capture fish is Lake Malawi. Other important water
bodies include Lake Chilwa, Lake Malombe, Lake Chiuta, and Shire River. About 45000
tons of fish are produced annually from Malawian water bodies (Phiri et al, 2011).
28
However, the production of fish has lately been declining as a result of overexploitation of
fish, thereby decreasing fish products available for exports. For example, Kapenta from
Mozambique (Caborabassa dam) comprise the largest quantities of fish imported in Malawi
followed by Pilchards/sardines from South Africa, Namibia, China Thailand and Pakistan;
Oreochromis niloticus from Zimbabwe; Horse mackerel from Namibia; Tuna from
Thailand and China; Mussels from China; CrabsandOysters from Thailand and China and
Pink Salmon from the United States of America. Most of the Malawi fish imports uses road
transport through Mchinji, Dedza and Mwanza border posts (GoM, 2014). Imports from
neighbouring countries are transported through roads, air and water (GoM, 2014).
Fish products are highly traded, and developing countries are among the most important
exporters. Fish exports from low-income, food-deficient countries are equivalent to 50
percent of the cost of their food imports (Sonjiwe, et al 2015). According to FAO (2012),
developing countries accounted for 49 percent of world exports by value and 59 percent by
volume in 2006. Garcia and Grainger (2005) consider global economic development
patterns, population growth, and the state of the environment as the main drivers.
Globalization of markets affects trade and investment flows through factors such as trade
alliances to remove barriers; low-cost transport; interconnections between product, labor,
and financial markets; and deregulation of country economies. This set of factors affects
fisheries and aquaculture. For example, direct access to European markets through low-
cost transport and value chains governed by large European retailers and wholesalers has
created and sustained the export market for Nile perch from Lake Victoria (Abila, 2002a).
29
2.7 Fish trade flows
Fish products in cross border trade are transported over a wide geographic range by a large
number of traders and processors through both formal and informal channels (Jagger and
Pender 2001). Traders using formal routes meets the set regulations for importing and
exporting fish products ranging from possession of trading documents like sanitary
certificate, trading permit and/or fish trading license as per country specific guides. In
Malawi, fish traders possessing sanitary certificate, passport/boarding pass, and Revenue
Authority Certification are regarded as formal traders (Table 1). The sanitary certificate
gives clearance that the fish products are proven fit for consumption by the Department of
Fisheries (GoM, 2014). Makombe, (2011) pinpointed that all these documents demand
processing fee and duty stamp fees. Based on criteria by the government of Malawi, the
possession of immigration mandatory documents like passport/border pass, sanitary
certificate for exporters, and fish trading permit and licences for importers qualifies a trader
to export and import fish products.
The revenue authority certificate is issued considering the quantities imported or exported
in accordance to the Common Market for East and Southern Africa Simplified Trade
Regime (COMESA STR) on trade of fish products. The COMESA STR was introduced to
expedite clearances for small scale cross border traders including fish traders. According
to Economic Commission for Africa (2010), the STR may be used by small scale cross
border traders who are importing and exporting goods worth $1000 or less per
consignment; with goods that are listed on the common list that qualifies under the
COMESA STR including fish related products.
30
Table 1: Export and import requirements for cross border fish trade
Type of document Export Import
Sanitary certificate Required Required
Licence Not required Required
Export & Import permit Not required Required
Passport/Border pass Required Required
Revenue Authority Certification (quantities
more than $1000 worthy)
Required Required
Source: (GoM, 2014)
According to Jagger and Pender (2001), fish is delivered to consumers through different
channels including the direct sale of fish to households at landing points on lakes or rivers.
Some fish products are sold to households by head load carriers or bicycle traders that buy
fish from fishers at landing sites, wholesalers that collect fish with pickup trucks in fairly
large quantities delivering to retailers, and processors that salt, dry or smoke and then sell
their products to traders or directly to consumers. In addition, well-developed commercial
export channels also exist and these have been extensively studied for Nile perch in Kenya
and Tanzania (Schuurhuizen, et al, 2006; Gudmundssonet al, 2006).
Along the fish delivery channels, fish traders use various routes to transport fish products
from source to target destination making a marketing channel. In this context, Nayeem, et
al (2010) defined marketing as a connecting link between the producers and consumers
where through the marketing system, the fish products reach the consumers in acceptable
condition. The marketing system operates through a set of intermediaries all the way from
the producers to the final consumers. Reza et al (2005) reported that fish and fisheries
31
products are marketed through many different channels and outlets depending on the
choice of the fish trader. The routing decisions by fish traders are often made based on
some criteria other than minimum distance, time or cost (Heye and Timpf, 2003). Bovy
and Stern (1990) describe three objective factors: the physical environment, the socio-
demographic environment and normative environment factors as key factors influencing
choice of trade route. In addition, a subjective factor influences the perception of the three
objective factors. In route choice, the physical environment has the largest influence (Bovy
and Stern 1990). Kirema (2012), mapped fish flows based on the routes for the regional
trade movement of freshwater fishery products within east and southern Africa (Figure 6).
The mapping showed different fish products being exported and imported from one country
to another. The fish species traded include Tanganyika perch, Nile Perch, Tilapia, Dagaa,
Chisense, Ragoogi, Muziri, Kapenta, Catfish, Lungfish, Alestes, and Bagrus (Kirema-
Mukasa, 2012). Most of these fish species being exported included those from the export-
oriented fisheries of Lake Victoria. This has been attributed to the rising demand from a
growing population hence increased consumption demand, depletion of stocks in fishing
waters of other developed countries, technical advances in preservation, processing and
transport, and poor regulation of the sector (Josupeit, 2011).
32
Figure 6: Map showing fish flows in East and Southern Africa for selected
species
(Source: Smartfish working paper, 2012)
The fish products passing through the trade routes include fresh and processed fish
products. The processed products of the artisanal sector constitute a significant part of the
intra-regional trade specifically the small pelagic species. However, Failler, (2014)
reported that the official data still do not suitably reveal them because small pelagic species
activities are not recorded (while import and export of frozen products are recorded). The
fish processed by artisanal processors circulates especially over land, in trucks, vans,
33
passenger vehicles, taxis, even motorcycles and cross borders sometimes without customs
declarations (Failler, 2014). From a trade perspective, Failler, (2014) reported that small
pelagics are affected by a double trend. On the one hand, stocks of demersal species (e.g.
sardinellas, mackerels, white fishes, shrimps, and cephalopods) are overexploited and
exported by African countries to Europe as high commercial value goods, and a
diminishing range of fishes remain available for local consumption: mainly small pelagics.
On the other hand, the new trade route of small pelagics to Asian countries absorbs growing
quantities of small pelagics the availability of which on the African market will sharply
decline. Least Developed Countries (LCDs) tend to supply unprocessed or minimally-
processed fish (Golub and Varma 2014). The most important fishing product from Sub
Saharan Africa (SSA) by far is canned tuna. Tuna fishing and canning has shifted from the
East to the West Coast of Africa, with Senegal replacing Mauritius as the largest African
exporter. Frozen fish fillets, mainly of South African and Namibian hake but also including
Nile perch from Lake Victori, are the second largest fish product from Africa (Josupeit,
2011).
Fish trader’s choice of a trade route is also reported to be influenced by fish price of the
target market. Prices of fish have been reported to vary considerably by season as well as
by country. For example, in the interior markets of Malawi, prices of fish products are
affected by seasonal competition from other sources of animal protein. Locations along the
lake shore, as well as the two largest urban centres, Blantyre and Lilongwe, exhibit lower
wholesale prices than elsewhere, particularly the hinterland markets of the region (Icrarm
34
and Gtz 1991). This, therefore, guides traders to where and when to sell fish products
thereby determining the trade routes to be used by fish traders.
2.8 Constraints to African Fishery exports and imports
Inefficient transportation is a major constraint to fishery exports. Distance, of course, is the
biggest determinant of transportation costs so efficient and cheap transport is crucial for
exporters. The dearth of paved roads in Least Developed Countries (LDCs) has an
aggregate of 20.8 percent as compared to 46.9 percent in all developing countries. This
contributes to inconsistent delivery schedules and substantial fuel costs even for
transporting fish over small distances (World Bank 2013). The lack of investment and
maintenance of roads is compounded by excessive red tape at customs and border
checkpoints, resulting in costs and delays for fish exporters in LDCs (Biggs 2012).
Exporters in SSA are especially disadvantaged because their internal transport costs -
getting exports from production and processing areas to ports of departure - are often
greater than the costs of transporting goods between (Kapute et al., 2012).
Equally important, the lack of access to facilities for fresh products at landing areas in
LDCs severely limits the ability of artisanal fishers to participate in distribution chains that
supply to developed countries. The lack of refrigeration means that LDCs cannot
participate in the rising share of frozen and processed fish exports in world trade (Nayeem,
et al., 2010). Traditional processing and preservation techniques employed by artisanal
fishers in the absence of refrigeration - like the smoking of fish using kilns, firewood,
charcoal and gas amongst SSA fishing communities - can increase 23% the concentration
35
of harmful chemicals in the atmosphere above limits specified by international regulations
(Akande at el, 2012). Informal cross-border traders face numerous challenges. According
to Ndlela, (2006), the challenges that informal traders face when using informal trade
routes from sources to final destination include exposure to corrupt border officials, lack
of knowledge of customs clearance and handling requirements, lack of recognition as
bonafide traders, inability to carry bulky products, and poor or inadequate infrastructure
(for example, lack of water and telephones).
2.9 Chapter summary
The literature has revealed the theories on the subject of the informal economy and informal
cross-border trade. Figure 7 display summary of the theories aiding understanding of the
reasons for the continued use of informal trade routes in cross border trade. The theories of
informal trade have helped the study to give more reflections to the different urgings
presented by scholars broadly.
36
Figure 7: Underlying theories informing the study
In terms of GIS application in geographical analyses, it is noted that GIS has widely been
used in different fields including geography for decision making. Studies from scholars
showed that GIS provide a platform to input, analyze and identify geographical patterns
relevant in transport, public health, urban planning and environmental protection.
The review of literature also revealed that there is growth of informal fish trade. Fish traders
use informal routes based on choices related to behavior of the person, economic, societal
Explanation for thriving use of informal fish trade routes
Political economy theories
-The neo-classical
-The dual labour market
Behaviour theories
-Structuralist
-Legalist
-Rational choice
-Rational legalist
-Survivalist
Spatial interaction theories
-Gravity model
-Huff's model
-The competing destinations model
37
and political, and spatial interaction. These theories, therefore, explained the variables that
influence choice of a trade route and destination as outlined in the conceptual framework.
However, in relation to the information gap existing regarding the informal trade routes,
and the supporting theories stated in this chapter, this study attempted to address that gap
by conducting a research on geographical analysis of informal fish trade routes between
Malawi and neighboring countries using a field based research methodology.
38
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Chapter overview
This chapter contains a description of the study methodology that was used to collect data
from the studied sample size as outlined in figure 8. A mixed approach was adopted to
ensure that understanding is improved by integrating different ways of knowing as well as
balancing the limitations of one type of approach with the other. Methodological aspects
presented in this chapter include: data collection methods, data analysis, and research ethics
observed during the conduct of the research.
39
Figure 8: A flow-diagram describing the research model
40
3.2 Conceptual framework
The research is undertaken on the basis that trader’s use of informal trade routes when
transporting fish products from sources to destination can be attributed to several factors
ranging from those that are geographical in nature (e.g. location of the source and
destination, route distance, accessibility, seasons, nature of the route, presence of
alternative destination)to other non-geographic factors (e.g. personal safety risks, mode of
transport demand and fish product) that influence a traders final destination (Serangelli and
Cirelli, 2010). Choice of the trade route and final destinations (market) by the fish trader
are the dependent variables which were regressed against the set of various factors
including location of the source, location of the final destination, demand (population),
route distance, accessibility, seasons, nature of the route, personal safety risks, mode of
transport, fish product and presence of alternative destination (Figure 9).
41
Figure 9: Conceptual framework showing the dependent and independent variables
for the study
3.3 Study location
Malawi is in the Sub Saharan Africa sharing boundaries with Zambia, Mozambique, and
Tanzania. Figure 10 shows the study border posts and boundaries of neighboring countries
focused on by the study to understand the cross-border fish trade in terms location of the
42
sources and destinations as well as nature of the trade routes used. The four border posts
selected for the study were; Songwe (Karonga) bordering Malawi and Tanzania, Mwami
(Mchinji) bordering Malawi and Zambia, Muloza (Mulanje) and Mwanza bordering
Malawi and Mozambique. The border posts were selected based on availability of fisheries
inspector at the border post implementing fish trade project activities through fish export
and import monitoring (Mussa et al, 2017).
43
Figure 10: Map showing the border sites where data was collected.
44
3.4 Sampling design
A four-stage sampling technique was employed for the study. Firstly, a purposive selection
of the border posts was used in order to easily get a sample of subjects with specific
characteristics as per set selection criterion. The criteria for selection of the border posts
were based on availability of fisheries inspector at the border post implementing fish trade
project activities through which fish export and import monitoring is done.
The second stage employed a snowball technique to identify key informants who provided
information on the informal fish trade routes within the border posts. This is where key
informant persons within the Department of fisheries (border fisheries inspectors),
customs, immigration officers and border surrounding villages were identified and
interviewed to provide insights of trade routes that fish traders use when importing and
exporting fish products. The advantage of this method is that it helps in identifying informal
cross-border trade routes where other fish traders were identified for interviews. Snowball
sampling has been found to be economical, efficient and effective in several studies
including informal cross-border trade between countries (Ama & Mangadi, 2012). The
advantage of snowball method is that it is appropriate to use when the members of a
population are difficult to locate where it allows reaching populations that are inaccessible
or hard to find. In this case the few key informants were located and interviewed to provide
information needed to locate routes where informal fish traders were interviewed. The
drawback of this method is that, it hardly leads to representative sample.
45
In the third stage, days to conduct the interviews for the sampled trade routes were
identified through randomization. This is where days of the week were numbered on small
pieces of paper 1 to 7 for Monday through Sunday respectively. The pieces of paper were
wrapped and mixed. The sampled routes for data collection were labelled using letters of
alphabet. Then, random selection from the mixed pieces of paper denoting days was used
to pick one at a time for respective letters in logical order denoting the trade routes for
example if first piece of paper with number 4 was randomly picked, then data collection
for route A will be done on 4th day of the week (Thursday). This was necessary to avoid
biases when collecting data along the exit and entry points for the available informal trade
routes (Langford et al, 2002).
Lastly, convenient sampling was employed where available fish traders using a particular
route for the assigned day of the week were interviewed using a semi-structured
questionnaire (Questionnaire attached in appendix section). Convenience sampling is a
non-probability sampling technique where subjects are selected because of their convenient
accessibility and proximity to the researcher (Krueger, 2000). Convenient sampling has
been chosen since the population of the traders is unknown. The study interviewed 440 fish
traders to get a representative sample size through convenient sampling
46
3.5 Sample size
Total number of the respondents involved in the study was determined using the following
formula by Edriss (2013),
N = ………………………………………………………… (1)
Where; (n) is the sample size, (p) is an estimate of prevalence, (z) is the z-value
corresponding to the desired degree of confidence, and (e) is the margin of error allowed
for this study.
The allowable error that this study used is 5% and a confidence level of 95% with a
corresponding z-value of 1.96. An anticipated proportion of prevalence is mostly assumed
to be 50% (0.5) when there is no previous estimate hence using the formula provided by
Edriss (2013). Substituting the values in the formula gives a sample size of 364 fish traders
for Malawi border sites.
n = = 364 respondents …………………………………………… (2)
However, some questionnaires usually become invalid for analysis due to errors and some
also got missing during data collection in the field. Therefore, to cater for these anticipated
circumstances, an additional 21% of the sample size accounting for 76 respondents was
added to the sample size based on the researcher's own discretion (Ama et al, 2013). The
final sample size equal to 440 was used for the study. According to Hair et al (2010), a
sample size should preferably be more than 100 for a factor or multiple regression analysis
to be conducted.
47
3.6 Data collection
The study used both primary and secondary data as follows:
3.6.1 Primary data
GPS surveying was done using handheld GPS devices to collect coordinates of the points
where traders cross the boundaries of Malawi using the chosen route. The coordinate point
data were used to identify the exact route being used when connecting the sources and
destinations. Google earth was used to get points for sources and destinations of fish
products away from the data collection sites through marking of placements on all
interacting points.
A semi-structured questionnaire was designed to collect data of the fish traders including
demographic characteristics, fish species/ products traded, forms of fish, sources,
destination, volume, means of transport, routes used, and marketing channels used.
According to Krueger, (2000), a semi-structured questionnaire is the best research
instrument consisting of a series of questions and other prompts for the purpose of
gathering information from respondents to be subjected to statistical analysis. Above all,
determinants of route choice were identified and captured through personal interviews with
fish traders. Data on demand for the route, distance, quantity of fish products, travelling
time, loading characteristics, means of transport, nature of the routes, frequency of trading,
and number of people involved were collected.
48
Fish traders satisfying the regulatory framework set by government were interviewed at
the official border post on daily basis. Semi-structured questionnaire was administered to
the formal traders in order to identify the key routes and final destinations from the sources.
For the informal trade routes, data collection targeted the traders that are using other routes
than the official government borders and a questionnaire was administered to the informal
fish traders through direct interviews (Mussa et al, 2017). The questionnaire was pretested
by the enumerators before actual data collection. Primary data was collected for a period
of one month on exit and entry points that traders use when crossing the borders through
informal and formal routes.
Key informant interviews were done to probe more primary information on the nature of
trade along the study border sites in Malawi and other neighbouring countries. Fisheries
border inspectors, customs and immigration officers were interviewed as key informant for
the study. According to Edriss, (2013), a key informant interview is a loosely structured
conversation with people who have specialized knowledge about the topic under study.
3.6.2 Secondary data
Secondary data was obtained from government departments including Fisheries
Department, National Statistics Offices, and the Department of Geological Surveys. The
secondary data included map layers for the road networks in Malawi and neighbouring
countries, fish exports and imports for 2010-2016, and population for markets from
national census reports.
49
3.6.3 Pretesting/Pilot Survey
Before the questionnaire was administered, a pilot study was conducted in June 2017 in
Mchinji-Mwami post bordering Malawi and Zambia. Pretesting help researchers to gauge
the meaning attributed to the survey questions before actual data collection (Grimm, 2008).
10 informal fish traders and 2 key informants were interviewed during pretesting along
informal routes in Mchinji. The results of the pilot study showed that the questions in the
questionnaire clear, useful and necessary.
3.7 Data analysis
3.7.1 Mapping of fish trade routes from source to destination
Route labelling method using data from the questionnaire and observation as described by
Ramming, (2002) was adopted and used for the study where GPS coordinates for boundary
entry and exit points were captured and uploaded in ArcGIS as a shape file. The point
features were converted to “KML” file format supported by Google Earth ® in ArcGIS to
assist in the identification of the exact routes used by fish traders. Route digitisation was
conducted by tracking the path from sources to destination following the responses of
traders as captured by the semi-structured questionnaire. Sources and destinations were
marked and labelled in Google Earth ® by adding the mark placement. The identified paths
containing place marks were finally re-exported to ArcGIS where route maps and their
characteristics captured from the questionnaire surveys were added as attributes for further
analyses.
50
3.7.2 Quantification of the magnitude of fish trade in informal routes
The second objective sought to quantify the volume and value of cross-border fish trade
through informal routes. This was aimed at estimating the unrecorded trade of fish products
between Malawi and her neighbouring countries because these were usually not part of the
record of customs officials at the various cross-borders points. The study adopted the Fish
Trade Program research methodology used by World Fish, NEPAD, and AU IBAR for the
regional fish trade project (Mussa et al, 2017). A similar methodology has been applied by
Ackello-Ogutu (1996) for estimating informal trade (unrecorded) between the East Africa
countries and Southern Africa.
By observation and information from traders, it was found that informal trade routes
include the routes close to the border sides that traders use to escape the border site and
mainly joins the main roads after bypassing the border post. The informal routes are usually
around these border points rather than in the remote and porous border areas far from any
settlements. Border monitoring was therefore concentrated around the established crossing
points specifically at the crossing boundary points of Malawi and neighbouring countries.
The border districts selected for intensive monitoring were Karonga, Mwanza, Mchinji and
Mulanje border posts.
51
The estimates of the fish products traded using informal trade routes were estimated by
using the following formula suggested by Ackello-Ogutu, (1996);
𝐴𝑇𝑉 = 𝑀 𝑁 [∑ 𝑄𝑑
𝑛
𝑖=1
𝑖] … … … … … … … … … … … … … … … … … … … … … … (3)
𝐴𝐷𝑇𝑉 = [∑ 𝑄𝑑
𝑛
𝑖=1
𝑖/𝑗] … … … … … … … … … … … … … … … … … … … … … … (4)
𝐴𝑉 = 𝑀 𝑁 [∑ 𝑄𝑑
𝑛
𝑖=1
𝑖] 𝑃 … … … … … … … … … … … … … … … … … … … … … (5)
Where:
N is days in a month a trader exported fish from the market;
M is the number of months in a year during which trader exported;
Qd is the Quantity (Kg) of fish exported per market day;
J is the total number of day’s data was collected;
P refers to the average price of fish per basket;
ADTV is average daily trade volume;
ATV is annual trade volume; and,
AV is annual trade value;
i is the trader index
52
3.7.3 Analysis of geographical factors influencing choice of fish trade route and
destination by the traders
Principal component analysis was used to identify factors influencing fish trader’s choice
of a trade route and destination. Firstly, Bartlett's test of sphericity was performed for
determining whether all variables in the sample are uncorrelated and Kaiser's Measure of
psychometric Sampling Adequacy to see if the correlation matrix could be used for the
factor analysis. In addition, number of components with significant loadings was
determined by Kaiser Criterion test. Finally, component matrix was rotated to make the
results easier to distinguish using PASW’s VARIMAX algorithm (Tucker & Mac Callum,
1997). Thirteen items were factor analysed using Principal Component analysis after
ascertaining the appropriateness of Factor analysis (Malhotra, 2005) using the Bartlett's
Test of Sphericity (significant at 0.05 level) and Kaiser-Meyer-Olkin (KMO) statistic
(>0.6).
On choice of the final destination, Huff gravity model was used to assess market
attractiveness and share in order to ascertain the effect of distance and size of market on
choice of destination of fish products. In this model, the probability (P)that a fish trader (i)
selling products at location (j) depends upon two factors: the population of the market and
the distance it takes to travel to the market (Levy and Weitz, 2007)—the larger the market,
the greater the probability of selling the fish products, while the greater the distance, the
lower the probability. The mathematical formula is as follows (Huff, 1964):
Pij = (S j / Tijλ / (∑ S j / Tijλ) ………………………………………………….… (6)
53
where (Pij) denotes the probability that fish trader (i)sells at location (j), (Sj) is the size of
the market at location (j), (Tij) is the distance for customer (i)to get to location (j), and (λ)is
a parameter that is to be estimated empirically to reflect the effect of distance on various
kinds of market trips.
Distance from interacting markets was calculated using Proximity Near Tool in ArcGIS
where each market was selected for distance calculation to all interacting markets. Taking
into account the distances and population of the market, attractiveness was calculated by
dividing the population of the market with the distance square for interacting markets. The
attractiveness of each market was summed up to find the total market attractiveness for fish
products. Lastly, the market share (probabilities for each market in terms of where fish
traders are most likely colonised) was calculated by taking the attractiveness score for each
market and dividing it by the total attractiveness.
Based on the Huff gravity model, this study adopted the definition of market attractiveness
and market share as defined by Huff, (1963) as follows:
Market attractiveness- The measure of potential value of a particular market in
relation to short term and long-term profit.
Market share- The measure of the probabilities where traders are most likely to go
for each interacting location.
54
3.7.4 Analysis of the challenges fish traders are facing when using informal
trade routes
The responses by the informal and formal traders were coded in SPSS to tabulate the main
challenges fish traders face when using informal trade routes. This helps to make
distinction between categorical and quantitative measurements as they are supposed to be
treated in very different ways for the purposes of data analysis (Grimm, 2008). Frequencies
and percentages were used to isolate the challenges from the sampled respondents for
formal and informal trade. A two-sided z-test and Bonferroni correction were used to assess
significant challenges informal traders were facing when using informal trade routes.
3.8 Research ethics
The permission to administer semi-structured questionnaires was consensual. An
introductory letter about the research was obtained from the University of Malawi
Chancellor College (Appendix 1). This was made available to the target respondents before
administering the data collection tools. The purpose of the research was clearly explained
to the respondents that the data will only be used for the research and academic purposes.
Where the respondent demonstrated or articulated discontent, the interviews were
rescheduled or cancelled. Respondents were presented with the consent form requesting
for their authorization. In addition, they were informed earlier that should any parts of their
interview be used in a publication, their names will not be recorded and any details related
to their privacy were to be kept confidential. According to Edriss, (2013), the authorization
allow respondents to provide an appropriate explanation, seek the individual's assent,
55
consider such persons' preferences and best interests, and obtain appropriate permission
from a legally authorized person.
The benefits from this study to the fish traders and the nation were well explained to the
respondents through dissemination conferences. After compilation of the final report,
copies were made available to those fish traders and fisheries border inspectors who
requested them.
3.9 Chapter summary
This chapter outlined the empirical methodology used in arriving at the results of the study
objective. Four border posts were purposively sampled based on the availability of the
fisheries inspectors. Snowball sampling technique was employed to identify informal trade
routes through key informants. Days to conduct the interviews for the sampled trade routes
were identified through randomization. Lastly, convenient sampling was employed where
available fish traders using a particular route for the assigned day of the week were
interviewed using a semi structured questionnaire.
A semi-structured questionnaire was designed and pretested to collect data of the fish
traders. A formula developed by Eddris (2013) was employed to get total number of
respondents involved in the study. In addition to this, a GPS handheld device was used to
collect coordinate point data to identify the exact route being used when connecting the
sources and destinations. Secondary data including shape files were obtained from
Department of Geological Survey. Data captured using questionnaire was analysed using
56
SPSS, while coordinates were uploaded to google earth for identification of exact routes
used by fish traders. The paths and place marks were separately uploaded in ArcGIS
version 10.3.1 to form route layers for generating formal and informal routes from sources
to destinations. The estimates of the fish products traded using informal trade routes were
estimated by using a formula suggested by Ackello-Ogutu, (1996). Principal component
analysis was used to identify factors influencing fish trader’s choice of a trade route and
destination. Methodology outlined in this section resulted into successful data collection
and subsequent analysis providing results and discussion for the study.
57
CHAPTER FOUR
RESULTS AND DISCUSSIONS
4.1 Chapter overview
The overall goal of this field work based study was to examine the geography of informal
fish trade routes in Malawi and the adjoining (neighboring) countries. Specifically, the
research sought to map informal fish trade routes, estimate the magnitude of fish products
traded using informal fish trade routes, analyse the geographical factors responsible for the
choice of informal fish trade routes and destination, and analyse the challenges fish traders
face when using informal trade routes between Malawi and her neighbouring countries.
This chapter, therefore, presents findings of the study using the specific objectives in
chapter 1.
4.2 Characteristics of fish traders
4.2.1 Socio-economic characteristics
The demographic and socio-economic characteristics of the respondents are presented in
figure 11.Out of the 449 sampled fish traders, 59% and 41% were males and females
respectively. In terms of age, the mean age of the respondents for all border sites was 31+-
±.32 years. However, a further analysis of the age of the fish traders by quartiles revealed
that the majority of the respondents were in the age group of 21 to 30 years (56.7%). This
58
confirms the studies by NSO (2010) which revealed that the economically active group in
Malawi is between 15 to 35 years where by they are involved in different income
generating activities including trade in fish products. There were no statistical differences
for the age groups (<20, 21-30, 31-40 and >40) among formal and informal fish traders
(p=0.123).
The study also indicated that, 84.6% were married, whereas 12.2, 2.7 and 0.4% of the fish
traders reported that they were single, divorced, and widowed respectively (Figure 11).
According to occupation of the respondents, majority (72%) consider fish business alone
as main source of income whereas 10%, 13% and 5% consider combined business ventures,
farming and transportation of fish as main occupation respectively. Respondents
represented by 5% of the sample were reported to be involved in cross border fish trade as
transporters of the products.
59
Figure 11: Demographic and socio-economic characteristics of the respondents
An average household for the fish traders was 5±.08 members, which is almost similar to
that of the Malawi national household size (NSO, 2012). According to figure 12, 28.3% of
the respondents had four members, followed by fish traders with more than five members
in the house (20%).
a b
c d
60
Figure 12: Household size of the respondents
4.2.2 Fish trading documents possessed by fish traders
Most of the fish traders (86.9 percent) were in possession of boarder pass as a travel
document when importing and exporting fish products from one country to another. It was
found that 14.3, 9.1, and 0.2% were in possession of sanitary certificate, trading permit and
license respectively (Table 3). However, majority of the traders 78.8% were trading the
fish products without necessary documents as required by Malawi government. One trader
narrated this and I quote:
“…you know sir, it is expensive to obtain the sanitary certificate costing
about MK5000 (6.6USD) every day from the department of fisheries which
is in Lilongwe, so I choose to use informal routes that will not demand
checking the fish products against the documents…”
1.95.6
20.6
28.3
20
23.7
0
5
10
15
20
25
30
One Two Three Four Five >Five
Per
cen
t
Household size
61
This shows that the certificates are not accessible to small scale fish traders due to
additional expenses making the certificate seem expensive for small cross border fish
traders. This result confirms the study by COMESA (2007) that obtaining the required
documents is expensive and inaccessible to small traders making traders export and import
fish products informally using unchartered routes. A similar finding was reported by
Jamela, (2013) through the legalist theory that informal cross border trade is a result of
excessive and inefficient government regulations that traders fail to comply with. This
agrees with the legalist school of thought that growth of informal sector is mainly attributed
to excessive and prohibitive regulations that traders fails to comply (Gardener, 2008)
Table 2: Trading documents possessed by cross border fish traders
Travel document Frequency Percent
Sanitary certificate Yes 64 14.3
No 385 85.7
Export and Import permit Yes 41 9.1
No 408 90.9
Trading license Yes 1 0.2
No 448 99.8
Other Border pass 146 86.9
National ID 3 1.8
Passport 19 11.3
Among formal fish traders interviewed, the results also indicate that the traders are small
scale cross border traders who are importing and exporting fish products worth $1000 or
62
less per consignment hence under duty free regime as provided by COMESA STR.
Therefore, the fish traders imported and exported the fish products without revenue
authority fee for their consignments but paid for possession of the sanitary certificate,
permits and immigration documents.
4.2.3 Type of fish trader
The study observed that most of the respondents (78.8%) were informal traders (Figure
13). This is where the fish products cross the border sites without required documents and
using other routes than the border sites where all official declarations are done. Formally,
only 21.2% of the fish traders sampled exported and imported the fish products following
all the set procedures.
Figure 13: Type of fish traders in cross border trade
21.2
78.8
0
10
20
30
40
50
60
70
80
90
Formal Informal
Per
cen
t %
Type of fish trader
63
4.2.4 Education level of household head
Education is one of the factors that affects decision making processes e.g. route and
destination choice decisions. The study shows that the average number of years spent in
school by the fish traders was 10±.12 with majority of them (63.4%) having attained
secondary education (Figure 14). The test statistic to test for differences in the qualification
levels between formal and informal fish traders revealed that there are significant
differences between them (P= 0.01), such that formal traders were more educated than
informal traders.
Figure 14: Highest education levels attained by the fish traders
4.2.5 Nationality of fish traders
The nationality of the traders was dominated by Malawians with 96%, whereas 2.0, 1.8
and 0.2% were from Zambia, Tanzania and Mozambique respectively (Figure 15).
64
Figure 15: Nationality of fish traders
4.2.6 Monthly income from fish trade by the trader
On average, a fish trader earned monthly income of MK175 465±MK12 521 from fish
trade with an average of MK371 700 and MK130 867 for formal and informal fish traders
respectively. Further analysis of the overall income levels indicates that 32.4% were
earning about MK51 000- 100 000 per month (Table 4).
96
0.2 1.8 2
0
10
20
30
40
50
60
70
80
90
100
Malawi Mozambique Tanzania Zambia
Pe
rce
nt
(%)
Country
65
Table 3: Income from fish trade by the respondents
Monthly income level (MK) Percentages
Overall Formal Informal
< 50 000 20.4 18.3 20.8
51 000-100 000 32.4 11.7 37.1
101 000-150 000 17.6 10.0 19.3
151 000-200 000 13.6 13.3 13.6
201 000-250 000 3.1 3.3 3.0
251 000-300 000 1.2 1.7 1.1
301 000-350 000 1.5 3.3 1.1
351 000-400 000 0.3 1.7 0
>400 000 9.9 36.7 3.8
Average income 175465.4 371700 130866.7
*** 1USD=MK730
However, majority of the formal traders (36.7%) were earning monthly income greater
than MK400 000 (548USD) from trade of fish products. On the other hand, majority of the
informal traders (37.1%) were reported to earn lower monthly income of about 51 000-100
000 Kwacha. The study further established that fish traders with high net income,
dominated by formal traders, obtained the phytosanitary certificates while traders with
lower monthly income of less than 100 000 Kwacha, being dominated by informal traders,
66
failed to obtain the required cross border trading documents. This means that traders with
high net monthly income managed to afford the fees for the certificates unlike traders with
lower monthly income.
The study further revealed that formal traders earned relatively high monthly income than
informal fish traders due to their ability to carry huge volumes of fish products per trip.
This implies that informal fish traders are limited in terms of fish quantities to be exported
or imported from sources to destination which significantly affect their net income from
cross border fish trade. This result confirms the findings by Macamo, (1999) in
Mozambique who observed that individual informal cross border traders carry small
volumes of products because of poor infrastructure along informal routes hence limiting
their income per trip. One trader in Mulanje told the researcher that:
“…since I use the tertiary roads away from the border that are not good
for cars, my efficient means of transport is bicycle that can only carry
about 65kgs of fish when crossing Malawi to Mozambique, my income from
fish trade is limited due to quantities I can transport per trip”.
4.2.7 Level of fish trader in the fish trade business
Fish products are sold by traders at different levels including wholesaling, retailing and
both wholesaling and retailing. Figure 16 indicates that 69.2% of the informal fish traders
were trading the fish products as retailers. In addition, 11.7, 13.2 and 5.9% involved in
cross border fish trade are wholesalers, middle trader and transporters respectively. Gordon
et al, (2011) also found that a high percentage of the informal cross border fish traders are
retailers. Among the formal traders, the study established that transporters were not
67
involved in trade of fish products. This is because transporters are mostly used along
informal routes when bypassing the official border site where thorough checking is done
on the fish products against required travel documents.
Figure 16: Level of the fish trader in cross border tradde
4.3 Fish species traded along informal routes and mode of transport
4.3.1 Fish products mostly traded
The study noted that the majority of fish products crossing the border sites passed through
four major forms of processing including smoking, drying, freezing and salting (Appendix
2). The study identified main fish products exported from Malawi through informal routes
include fresh Chambo, fresh and sundried Usipa, sundried Utaka, sundried Matemba, and
sundried Chikowa. Across the bordering districts, the study established that fresh Chambo,
fresh Usipa and sundried Utakawere the main fish products exported through Karonga
69.20
11.70
13.20
5.90
Retailer
Wholesaler
Middle trader
Transporter
0% 10% 20% 30% 40% 50% 60% 70%
Leve
l of
trad
er
68
whereas sundried Usipa dominated in Mwanza, sundried Matemba through Mchinji and
sundried Chikowa through Mulanje (Figure 17)
Figure 17: Main fish products exported by Malawi
In terms of imports, the main fish products imported by Malawi through informal routes
identified in this study were dry salted Bakayawo, dried Mutera, fresh Karapao, fresh
Pende, frozen mackerel, frozen tilapia, dry salted Kapenta, sundried Kiwilele, and sundried
Makwale. Dried Mutera, and dry salted Kapenta were the main fish products imported
through Karonga (Figure 18), whereas dry salted Bakayawo, fresh Pende, sundried
Makwale and frozen mackerel dominated in Mwanza, frozen tilapia through Mchinji, and
fresh Karapao and sundried Kiwilele through Mulanje. The study observed that the exports
and imports of fish species that were transported were dominated by low value species with
listing of Usipa, Matemba, Mutera, Makwale, and Kapenta. The results agree with the
assertion from other studies that quantities of Africa cross border fish trade are dominated
0.0 4.0 8.0 12.0 16.0 20.0 24.0
Fresh chambo
Fresh usipa
Sundried usipa
Sundried utaka
Sundried matemba
Sundried chikowa
Mulanje Mchinji Mwanza Songwe
69
(over 50%) by imports and exports of low value pelagic species (Antwi– Asare and
Abbey, 2011).
Figure 18: Main imported fish products between Malawi and neighbouring
countries
The study identified varied reasons associated with trade of certain fish products by the
informal fish traders. Figure 19 indicates that high demand by customers was the main
reason for trade of fresh Karapao (61.8%), fresh Chambo (37.1%), frozen mackerel
(39.7%), frozen tilapia (32.3%), paraboiled Usipa (36.8%), smoked Utaka (40%) and
sundried Chikowa (43.8%).High demand of fish products was associated with various
factors including; (1) lower supply for fish products than customers demand for product
like fresh Chambo and (2) lower unit price of the fish products created demand for
products that were perceived to be affordable like smoked Utaka and paraboiled Usipa.
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
Dry salted bakayawo
Dried mutera
Fresh karapao
Fresh pende
Frozen mackerel
Frozen tilapia
Dry salted kapenta
Sundried kiwilele
Sundried makwale
Percent
Fish
pro
du
ct
Mulanje Mchinji Mwanza Songwe
70
The study also established that fresh Chambo (30.5%), fresh Usipa (36.7%) and frozen
Mackerel (22.9%) were preferred due to their ability in providing more profits to the
trader. Fish products with long shelf life including salted Bakayawo (33.3%), sundried
Usipa (23.8%) and sundried Kiwilele (31.3%) were also preferred by traders. In figure
17, dry salted Kapenta (28.6%), and sundried Makwale, Matemba, Usipa and Utaka with
33.4, 33.3, 33.3, and 30% respectively were reported to be mostly traded in cross border
informal fish trade routes due to high supply hence commonly found. This confirms the
assertion that majority of cross border fish traders prefer trading fish products that have
both long shelf life and high demand at the market to minimize the risk and get reasonable
profits (FAO, 2009).
Figure 19: Reasons for fish preferences among fish traders
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Fish product
Commonly found Long shelf life Good and easy to preserve
High demand by customers Cheap High profitabiity
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4.3.2 The mode of transportation for fish traders
The study established that the mostly used means of transport for the fish products from
sources to destination as presented in figure 20. The results indicate that majority (62.2%)
of fish traders used bicycle, whereas 46.3, 15.1, 13, 11.9, 5.6, 4.7 and 1.1% used minibus,
walking, boat, taxi, motorbike, truck, and own car respectively (Figure 20). This agrees
with the findings by Failer (2014) who reported that fish products traded informally
circulate especially over land, in trucks, vans, passenger vehicles, taxis, and motorcycles,
however bicycles remain mostly preferred due to nature of informal routes. These products
often times also cross borders without customs declarations using informal trade routes.
The reason for the majority of the traders considering bicycle as most efficient means of
transport was attributed to the fact that, most informal routes have small roads that are
bumpy for cars but easily accessible with bicycles. The second reason that accounted for
this was because bicycles are cheaper to transport the product when crossing the borders
and can carry the small volumes of fish products transported by informal traders per trip
(Hesse & Rodrigue, 2004).
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Figure 20: Available modes of transport used by fish traders
Fish traders change the transport mode along the routes based on compatibility of the
means of transport to the chosen route at any point by the fish trader. In respect to this
phenomenon, the study established that bicycles were mostly used along the small routes
that bypasses border posts and join the formal routes few meters after or before the border
site. This finding support results by Slack, (2004) who reported that no single mode of
transport has been solely responsible for economic growth and changes depend on choices
by users. On the other hand, formal traders were found to rely much on vehicles (67%)
when transporting fish products from sources to destination along the formal trade routes.
This result agrees with Abbott et al (2015) who opined that formal cross border fish traders
find passenger vehicles cheaper to transport bundles of fish collectively from sources to
destination.
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4.4 Informal fish trade routes between Malawi and neighbouring countries
The first specific objective was to map informal fish trade routes between Malawi and her
neighbouring countries.Firstly, the study mapped two main types of routes based on the
type of trade associated with the route(formal or informal).Fish products were imported
from sources in one country and transported to another country through formal and
informal routes. This agrees with ICSF (2002) who pointed that there is an extensive
movement of fish across the African sub-region. The study also established that the main
road network connecting markets within and outside Malawi plays a major role in
distribution of fish products from sources to destination. Figure 21 shows the road network
used by traders from the sources to destination during cross border trade passing through
border sites thereby representing formal routes used by fish traders.
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Figure 21: Fish trade routes connecting fish sources and destinations
The study further identified Mangochi, Salima and Karonga as primary sources of fish
products (Figure 21). The other markets were serving as secondary sources as well as final
destination of fish products. In terms of the main routes used, the study established that
traders use Salima – Luangwa route passing through Lilongwe, Mchinji, and Chipata.
75
However, the study shows that Lilongwe market was the main secondary source of fish
products that were transported through Salima-Luangwa route. In Mwanza, fish products
were reported to be transported to Tete from Limbe and Mwanza market. The fish products
from Tete pass using the Mangochi – Limbe- Tete route via Mwanza. Again, fish products
from Mangochi and Limbe were reported to be transported to Milanje using the Mangochi-
Limbe-Milanje route via Thyolo, and Mulanje. Cross border trade in the northern region
of Malawi was reported to occur through Karonga-Mbeya route via Karonga border and
Kasumula in Tanzania.
Traders connect the sources and destinations using either formal or informal trade routes
depending on a trader’s choice. Traders involved in informal trade leave the formal routes
when approaching the border sites and use routes that bypass the border sites and rejoin
the main route after crossing the official border sites (Figure 22 a, b, c & d). Informal routes
used at each border site when bypassing the border sites have been displayed and described
per border sites in the next section;
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Figure 22: Informal fish trade routes in cross border fish trade (with extracts a, b, c
and d)
77
4.4.1 Mwanza border site
The major informal routes that are essential for linking traders from sources to destination
are; Fight, Nthache and Kanyani (Figure 22a). Fight route were reported to be the busy
route with more fish traders transporting fish products from Mwanza market to Zobue than
Kanyani and Nthache routes. Although Fight route requires travelling longer distance to
escape the border post, traders reported to prefer the route because there is less likelihood
of being caught when using the route. At Fight route entry point from the main route; this
is what the fish trader said:
“…I feel safe when am using Fight route… the border officers rarely
visit this route hence low chances of being caught and charged for the
products unlike Nthache and Kanyani routes that are close to the border
and being monitored at times by border officers…”
The survey observed that Blantyre main market is the main source of fish products that are
exported to Mozambique through Zobue and Tete with usipa, chambo and utaka as major
export fish types. In terms of imports of fish products, Zobue to Mwanza market through
fight informal route was emphasized to be the best route in cross border informal trade.
The major fish sources in Mozambique for informal cross-border fish trade through
Mwanza were Tete and Zobue. However, the study indicates that Tete was involved in
trade mainly as the source of fish products. This may be attributed to its location in relation
to Zambezi River where fishers catch various fish species. The study further revealed that
fish traders obtain fish products from Tete and sell in Zobue a market close to the boundary
between Malawi and Mozambique thereby providing a secondary fish source for cross
border trade between Malawi and Mozambique. This agrees with studies by Constantin
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(2004) that each destination or sources have some chance of being patronized as distance
decreases.
In Malawi, Blantyre market, Mwanza, and Lunzu were the main sources of the fish
products which were exported through Mwanza border to Zobue. Fish species like
bakayawo, kapenta, mackerel, makwale, njole and pende from Mozambique were reported
to reach Blantyre, Lunzu and Mwanza markets as final destination (Appendix 3).
4.4.2 Mchinji border site
Several entry and exit points between Malawi and its neighbouring Zambia were observed
linking both approved and unapproved routes that traders were using for cross border fish
trade. The study identified Mchinji Chipata M1 road as the major route that traders were
using running through Salima to Chipata. However, secondary routes that connect with the
the major route were identified with entry and exit points before and after the official border
site. The secondary routes include Zalewa, Mkanda and Eleven route which lack check
points to monitor and document fish products crossing between Malawi and Zambia
(Figure 22b). While these secondary routes link to the main route passing through the
border, they remain informal as they are used by fish traders when escaping the official
border post.
In terms of volume, the findings revealed that 58% of the total volume of informal fish
trade through Mchinji went through Zalewa route, whereas 30.3 and 11.2% passed through
Mkanda and Eleven routes respectively. Zalewa route is few meters away from the border
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post and join the formal route after crossing the border post. Among other informal routes,
traders reported that Zalewa route is prefered due to short distances unlike other informal
routes like Mkanda and Fight that requires about 2 hours travelling when escaping the
border site. However, some traders indicated that although Mkanda route is associated with
large distances but the closeness to trader’s home and availablity of opportunities to sell
the fish products along the route specifically at Mkanda market influences them to use the
route.
Informal cross border fish trade through Mchinji border was dominated by exports of Usipa
and imports of Mackerel through Mkanda, Zalewa and Eleven informal routes. The study
also noted that sources of fish products crossing Mchinji border were reported to be
obtained from mere markets rather than actual fishing sites except 310kgs of Chambo
which were obtained directly from Salima (primary source). This is the case as the fish
value chain involves several actors from one place to another before delivering the product
to the final consumers. This agree with the findings by Nagoli et al, (2009) who found that
trade in fish products involves several actors along the fish value chain. However, Salima
and Luangwa in Malawi and Zambia respectively were the primary sources of the fish
products traded informally. Regardless of Salima being the lake shore area where a lot of
fishing activities are done, the study established that Lilongwe fish market acts as a main
secondary source of fish products involved in informal cross border trade. Lilongwe is
Malawi’s capital with a high real and potential demand for fish and fish products. In
addition, it is in close proximity to the main sources of fish; Salima and Mangochi, hence
assured of constant supply of fish and fish products. This agrees with report by GoM,(2014)
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that there is high demand for fish in the upland areas away from the lakes, and in the urban
centers hence attracting fish traders to supply fish products thereby creating secondary
sources of fish products.
4.4.3 Karonga (Songwe) border site
Figure 22c presents the cross-border trade routes used by fish traders between Malawi
and Tanzania. The mapping shows that traders were using routes that by-pass the official
border site when transporting the products from sources to destination. Interestingly, it
was shown that traders were using the bypasses when approaching the border site as a
way to escape border checking process of their products. Fish traders indicated that the
mostly used routes when trading fish products informally through Karonga (Songwe
border) were; Songwe bypass, Nyasa, January and Timothy routes. The study further
observed that 55.2% of the total volume traded informally through Karonga were
transported using Timothy route followed by January (26%), Nyasa (14%) and Songwe
bypass (4.8%).The study ascribe this to the fact that fish traders escape the route passing
through the border site due to lack of required travel documents for importing and
exporting fish products on the other hand avoiding taxes. This assertion was further
confirmed by the traders in Karonga. In an interview at Timothy route junction from the
main M1 road, a trader said:
“…you know my friend, transporting fish products through the border direct
route requires certificates from fisheries department costing about MK5000
per trip, so using Timothy route to Kasumulu in Tanzania becomes affordable
in my business as the cost of obtaining the travel document is skipped...”
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In addition, fish trade routes connecting to Kasumulu were preferred as the traders sell
the products at Kasumulu on their way to Mbeya. Further analysis revealed that routes
close to the homes of the traders and with less likelihood of being caught were preferred
by informal fish traders.
The study also identified that the main sources of fish products in Malawi traded through
Songwe border were Karonga market, Kaporo, Ngala, Kambwe and Songwe border
market. Much as the study identified several sources of fish products, it is important to note
that Karonga market and Mbeya were the main source of fish products. Malawi exported
monthly volume of 2,058 kgs from Karonga and imported about 3, 834kgs from Mbeya.
This can be attributed to the fact that Karonga market is the active trading point where fish
traders obtain products from fishing grounds of Lake Malawi along Karonga. Secondly,
Karonga Township has well established marketing infrastructure with active economic
activities that generate supply and demand of fish products. The markets in Karonga
provides destinations for fish products obtained from nearby fishing sites without high cost
of transport. The findings support the results from a study byLakshmanan, et al (2001) that
a movement occurs between an origin and a destination when the costs incurred by a spatial
interaction are lower than the benefits derived from such an interaction.
In terms of destination of the fish products, Kasumulu and Karonga market in Tanzania
and Malawi respectively were the main destination for the traded fish products. However,
Mzuzu as one of the cities of Malawi was reported as destination of sundried salted kapenta
and sundried makwale worthy 2 424 and 100 kgs per month respectively from Mbeya.
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Kapenta and makwale fish species are in the group of low value small pelagic fish
species.Mzuzu is the Malawi’s city in northern region with a high real and potential
demand for fish and fish products. The trend for low value pelagic fish species imported
from Mbeya to Mzuzu shows a supply-demand relationship between these two interacting
points. This agrees with the study by Failler, (2014) that the low value small pelagic species
plays a crucial role in increasing fish accessibility to low income households within areas
with high and real demand of fish products.
4.4.4 Mulanje (Muloza) border site
In Mulanje, informal fish traders were transporting the fish products using Muloza bypass,
Mtambalika, Maliera and Zumbira routes (Figure 22d).The figure 22d shows that fish
products from Malawi were mainly sent to Milanje in Mozambique through exit and entry
points that receive no attention by customs and immigration officers hence linked to
informal routes. While using the informal routes, traders explained thatthe informal trade
routes demand crossing Muloza River using a boat as the exit and entry points between
Malawi and Mozambique are bordered by the river. This implies that, vehicles cannot be
used as there are no bridges along the Muloza River hence using convenient means of
transport in accordance with the nature of the route. This agrees with the findings of
Chandra et al (2010) that posited that informal tarders use any possible exit and entry points
to escape the tarrifs associated with cross border.
Basing on volumes traded, it was noted that Limbe market is a major fish market in the
Malawi’s commercial city (Blantyre) with a high real and potential demand for fish and
83
fish products. Limbe market serves as a collection and distribution point for fish and fish
products from different sources in the southern region of Malawi hence acting as secondary
source and destination of fish products involved in informal cross border trade. The
assertion supports the basic assumption of spatial interaction theories that a transportation
supplies and demand relationship expressed over a geographical space influences
movement of products from origin to destination (Anderson et al, 2010). Limbe has a well-
connected road network linking primary fish sources including Mangochi, Salima, and
Zomba (Lake Chilwa catchment area). This allows fish traders to supply high volumes of
fish products in response to the real and potential demand of fish products. This finding
agrees with assertion by Hodgson and Tight (2004) who reported that attributes of transport
system generate and attract movement of information, products and people.
The study further identified Milanje in Mozambique as the main source of fish products
Malawi is importing through informal routes. These included Karapao as major product
(8, 160 kgs), Kiwerere (920kgs), Chikowa (660kgs) and Tilapia (80kgs) per month. In
terms of destinations, Limbe and Blantyre main market were the main destinations for fish
products (Appendix 6).
4.5 Overall magnitude of formal and informal cross border fish trade
The second specific objective was to estimate the magnitude of fish products traded using
informal fish trade routes between Malawi and her neighbouring countries. The following
results (Table 5) were obtained. The annual informal fish volume traded between Malawi
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and her neighbouring countries was estimated at 77,129 metric tonnes valued at
US$127,494,491.39.
Table 4: Annual informal trade volumes in cross border fish trade
Border site Volume Value
Kgs Tons MK USD
Karonga 20,487,900 20,487.9 32,919,961,971.8 44,486,435.10
Mwanza 11,794,500 11,794.5 15,130,110,000 20,446,094.59
Mchinji 24,921,224 24,921.2 24,384,275,353.3 32,951,723.45
Mulanje 19,925,289 19,925.3 21,911,576,305.3 29,610,238.25
Total 77,128,913 77,128.9 94,345,923,630.4 127,494,491.39
On the other hand, the study established that the annual formal fish volume was estimated
at 1,870.4 metric tonnes valued at 3,835,910 dollars (Table 5). The reason for this total
difference in annual volumes is contributed to the fact that majority of fish traders (78.8%)
opted that informal routes rather than formal routes when transporting their fish products
from sources to destination. The result also affirmed the study of Ama & Mangadi (2013)
that observed that majority of fish trade in most developing countries goes through informal
routes hence not recorded in national statistics.
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Table 5: Annual formal trade volumes in cross border fish trade
Border post Volume Value
Kgs Tons MK USD
Karonga 83,880 83.88 142,449,224 192,499
Mwanza 425,812.4 425.8124 633,544,006 856,140.5
Mchinji 1,360,671 1,360.671 2,062,579,974 2,787,270
Total 1,870,364 1,870.364 2,838,573,204 3,835,910
4.6 Factors influencing route choice and destination
The third specific objective was to analyse the geographical factors responsible for the
choice of informal fish trade routes and destination between Malawi and her neighbouring
countries. This section presents the factors influencing choice of the route and destination
being discussed separately as follows;
4.6.1 Route choice factors
Characteristics of the model (Table 6) present the main factors influencing choice of a trade
route by fish traders taking into account the factor loadings, communalities, eigen values
and percent of variance.
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Component 1: The first component should be the most important as it explains about 23.5%
of the variability for the total data. High and positive factorial loads were observed for the
variable route distance (0.782) and mode of transport (0.716). It can be stated that
component 1 represents choice of the route by the fish trader that is strongly associated to
route distance and available mode of transport. The results on influence of route distance
on trader’s choice agrees with the assertion from other studies that the interaction between
two centres is in direct proportion to their size and in inverse proportion to the distance
(Cheng and Wall, 2005; Constantin, 2004). The study observed that fish traders prefers
routes that are shorter and directly targeting planned final destination without considering
the official check points for cross border trade. Road type is another significant variable
influencing traders to choose a route from sources to destination with a factor loading of
0.611. According to Hodgson et al, (2004), road type can impose a natural convergence of
routes that will create a certain degree of centrality and may assist traders in choosing the
route to use from sources to destination as topography can complicate, postpone or prevent
the activities.
Component 2: The second component explains about 17.4% of data variability. There were
high and positive values for the two variables. According to factorial loads observed in
component 2, high and positive values for season and climate indicate that, favourable
seasons and climate positively influences the fish trader to choose a trade route from source
to destination. The result agrees with the assertion by Failler, (2014) that the major
components of climate including temperature, wind and precipitation influence traders or
travellers to use certain routes from sources to destination.
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Component 3 explains about 10.3% of the data variability, and it has a slightly high and
positive factorial load value for customer’s demand (along the route) variable. However,
high and negative value for choice of a trade route related to monetary transport cost was
observed. Intuitively it is expected that expensive routes, in terms of transport costs remain
less preferred by business operators. According to the negative factorial load for transport
cost variable, the study suggests that the higher the monetary cost of using a trade route,
the lower the probability of fish traders travelling using the route. This confirmed the result
of Schneider & Enste (2002) that cost of using a route negatively and significantly affect
route choice decisions by traders.
Component 4: The fourth component explains about 8.4% of data variability where
presence of alternative destination was observed with high and positive factor load. This
variable shows that increase in possible destinations where fish products can be sold
associated with a particular trade route influences fish trader to choose a route from sources
to destination. This result is consistent with the study of Rodrigue, (2017) that established
that traders get attracted with opportunities to sell the product in other markets before the
target destination.
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Table 6: Final factors, items, loadings, communalities and Eigen values
Component Significant variables Factor
loadings
Communalities Eigen
values
% of
variance
1 Route distance 0.782 0.658 3.062 23.555
Road type 0.611 0.624
Location of the final
destination
0.618 0.589
Mode of transport 0.716 0.563
Personal safety risks 0.529 0.648
2 Quality of roads 0.701 0.655 2.26 17.388
Seasons 0.82 0.748
Climate 0.807 0.776
3 Demand population of
customers
0.579 0.563 1.341 10.313
Monetary transport
cost
-0.649 0.664
4 Presence of alternative
destinations
0.669 0.515 1.092 8.403
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4.6.2 Destination choice factors
Characteristics of the model (Table 7) include factor loadings, communalities, Eigen values
and percent of variance expressed by the components and individual factors.
Table 7: Final factors, items, loadings, communalities and Eigen values
Component Significant variables Factor
loadings
Commun
alities
Eigen
values
% of
varianc
e
1 Route distance 0.761 0.704 3.323 27.693
Mode of transport 0.646 0.63
Demand or
population of
customers
0.543 0.624
Monetary transport
cost
0.687 0.571
2 Season 0.847 0.764 2.347 19.555
Climate 0.776 0.751
3 Personal safety risks 0.537 0.712 1.474 12.28
4 Presence of
alternative
destinations
0.798 0.75 1.053 8.772
From the principal component estimation, not all the variables were statistically significant.
The significant variables are route distance, mode of transport, demand of the product by
customers, monetary cost of transport, season, climate, personal safety risks, and presence
of alternative destinations.
The first component should be the most important as it explains about 27.7% of the
variability for the total data. The principal component output shows that high and positive
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factorial loads were observed for the variable route distance (0.761) and monetary transport
cost (0.687). According to results in table 7, it can be stated that component 1 represents
choice of the destination by the fish trader that is strongly associated to route distance and
monetary transport cost. Anderson, (2011) argued that route distance and cost of transport
plays a role in transportability of products from sources to destination. Hesse & Rodrigue,
(2004) also reported that ease of movement is related to transport costs as well as to the
attributes of what is being transported (fragility, perishability, and price).
The second component explains about 19.6% of data variability. There were high and
positive value for the two variables. According to factorial loads observed in component 2,
high and positive values for season and climate indicate that, favourable seasons and
climate positively influences the fish trader to choose a destination. Failler, (2014)
observed the similar trend where season and climate were reported to have an effect to the
trader regarding choice of routes and destination.
About 10.3% of the data variability is explained in component three of the principal
component analysis. Personal safety and risks had slightly high and positive factor load of
0.537. This entails that personal safety and risks by fish traders has significant role for the
trader to choose destination such that the safer the destination, the higher the chances for
the fish trader to choose the destination to sell the fish products. This confirmed the results
of Texas Transportation Institute (2002) that the choice of destinations becomes important
and depends on a number of factors such as the safety of the traders, nature of the goods,
the available infrastructures, origins and destinations, technology, and particularly their
respective distances.
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The fourth component explains about 8.4% of data variability where presence of alternative
destination was observed with high and positive factor load. This variable shows that
increase in possible destinations where fish products can be sold associated with a
particular destination influences fish traders to choose a destination among the available
destinations. This finding relates to principal component one where route distance emerged
having significant influence indicating that traders may prioritise presence of alternative
destination regardless of the distance. This result is consistent with the study of Rodrigue,
(2017) that established that availability of other potential destinations influences traders to
choose a particular destination with plans of visiting the other destinations if anything
changes for the target destination.
Despite having specific factors influencing choice of a trade route and destination, the
study further established that route distance, presence of alternative destination, mode of
transport, demand of the fish product, and personal safety and risks were the factors
influencing choice of both trade route echoing results by other authors (Rodrigue, 2017;
Anderson & Yotov 2010; Jamela, 2013; Gardener, 2008). The factors are as follows:
All other things equal, distance of route from the sources to destination have an
influence of fish trader’s choice for the route and destination of the product.
Increase in the distance of route increase the cost of transport for the product from
sources to destination. Fish traders opted for routes that are short to reduce travel
time and cost of transport instead of direct formal routes passing through the border
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sites that are associated with more costs. This agrees with the finding by Ullman,
(1980) who reported that individuals choose destinations that are closer to their
locations in order to reduce cost of transport from the origin to final destination.
In relation to presence of alternative destination, an increase in possible destinations
where fish products can be sold associated with a particular trade route influences
fish trader to choose a route from sources to destination. This support the concept
of intervening opportunities, a third component of spatial interaction theory that
flow of goods that would otherwise occur between two complementary locations
may be diverted to a third location if it represents an intervening opportunity
(Rodrigue. 2017; Constantin, 2004). Thus, presence of a closer complementary
alternative with a business advantage will influence trade to choose trade routes
and destination.
Informal fish traders consider mode of transport as an important factor as it
determines the cost of transporting the fish products from sources to destination
along the informal fish trade routes. Traders choose mode of transport that will
minimise cost and maximise net profits. This relate to the assumptions by neo-
classical theory postulated that decision on the mode of transport remain voluntary
and individuals opt for options where expected net benefits will be the greatest
(Chandra et al, 2010)
The finding on role of demand of the fish product, it was established that traders
transport fish products from locations with surplus supply to locations with a deficit
of the product. This allowed us to agree with complementarity component of the
spatial interaction theories that surplus of a desired product in one area and a
93
shortage or demand for that same product in another area is the main requirement
for trade to take place (Andeson J., 2011). This reflects disparities in net profits,
and movement of fish products is therefore generated by supply push and demand
pull for the interacting locations.
As informal fish traders operate without necessary trading documents using
informal routes from sources and destination, the study showed that personal safety
and risks associated with the route and target destination remain significant factor
when making various decisions. The study revealed that safety for the fish traders
including the aspect where they are not caught by the immigration officers and
being charged as the informal trade remain key factor in choosing routes and
destination in cross border fish trade. This confirms the assumptions of behaviour
theories that individual behaviours can be conditioned in a manner that one can
have specific response to specific stimuli (Davie & Valodia, 2009.
In general, the results of the studied informal fish traders demonstrated that route distance,
presence of alternative destination, mode of transport, demand of the fish product, and
personal safety and risks are the main factors influencing choice of a trade route and
destination for the product. The study further developed a framework showing the factors
influencing choice a trade route and destination by fish trader (Figure 23)
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Figure 23: Factors influencing fish trader’s choice for informal trade routes and destination
4.6.2.1 Huff’s gravity model market attractiveness and market share
Huff gravity model was used to assess the market attractiveness and share in relation to
their role in influencing choice of a market by fish traders. Table 8 presents the market
attractiveness of interacting markets and probability of fish traders at different location
travelling to a particular destination. The bigger the size of the market, represented by a
point, the more attractive the market is for trade of fish products.
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Table 8: Huff gravity model market attractiveness and market share for cross border fish trade
Location Attractiveness Market share (%)
Border Market Total
attractiveness
Marketshare
1
Marketshare
2
Marketshare
3
Marketshare
4
Marketshare
5
Mwanza Mangochi 5.97 --- 29.6 29.5 30.7 10.2
Limbe 81.1 8 --- 31.7 46.9 7
Zobue 121.6 0.2 1 --- 97.8 0.6
Mwanza 466 0.3 1.6 97.6 --- 0.5
Tete 67.93 6.9 18 39.5 35.3 ---
Mulanje Mangochi 5.5 21.8 25.7 25.2 27.3
Thyolo 203.4 9.4 --- 12.4 21.6 56.6
Mulanje 267.2 18.1 13.1 --- 10.1 58.7
Milanje 46.3 22.6 18.3 8 --- 51
Limbe 261.2 9 17 26.2 47.5 ---
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Location Attractiveness Market share (%)
Karonga Mzuzu 162.4 --- 50.6 32.5 17
Karonga 47.3 5.7 --- 84.5 10
Kasumulu 161.9 3.3 76.2 --- 20.5
Mbeya 149.6 5.5 28.6 65.9 ---
Mchinji Lilongwe 195.2 --- 3 10.8 29.7 48.8
Luangwa 3.3 12.1 --- 6.4 0.3 20.9
Mchinji 21.7 1.2 4.2 --- 8.6 83.1
Salima 9 22.3 58.4 11.2 --- 8.2
Chipata 15.4 8.6 63.4 0.5 7.6 ---
Note: --- means no market share as the market acted as a source of fish products
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Depending on the market shares, the study showed that there is high probability of fish
traders in Mangochi, Limbe and Zobue to interact with Mwanza as a target destination of
fish products by 30.7%, 46.9% and 97.8% respectively. This implies that fish traders
obtaining products from Mangochi, Limbe and Zobue have a greater chance to patronize
Mwanza. However, the study established that Zobue and Mwanza registered a strong
interaction as there is 97.8% chance followed by Limbe with 46.9% and lastly Mangochi
with 30.7%. This shows that a trader has more chance of choosing Zobue as final
destination when exporting fish products from Malawi whereas Karonga market remain
the most likely market a trader can choose when exporting fish products from Tanzania.
Taking into account the distances between the locations, it was established that probability
of a fish trader visiting a particular market is inversely related to the distance between the
interacting locations.
In terms of traders using Mulanje border, it was observed that Malawi exports and imports
fish products to and from Milanje in Mozambique. Thyolo, Mulanje, Limbe and Mangochi
are the main markets interacting with Milanje as sources and destinations of fish products.
Basing on the market share, the results in table 8 indicate that there is 51% chance of
choosing Limbe as final destination by traders obtaining fish products from Milanje. The
rest of other markets having a market share of 22.6%. 18.3% and 8% for Mangochi, Limbe
and Mulanje respectively. This shows that Limbe had a higher probability of being chosen
as a final destination by fish traders than short distance markets like Mulanje and Thyolo.
This may be accounted for as a result of the increase in the demand for fish products due
to high population in Limbe hence possibilities of making high profits.
98
The value for market attractiveness for markets along Mzuzu-Mbeya route through
Karonga (Songwe) border post showed that Mzuzu and Kasumulu were the most attractive
markets for fish products. Mzuzu is a capital city in the northern region of Malawi and has
high demand for fish products unlike Karonga (Matiya et al., 2005). Even though Mzuzu
registered high market attractiveness, Karonga showed a high market share (84.5%) for
fish products Malawi imports from Tanzania. This implies that a fish trader has a greater
chance (84.5%) to transport fish products to Karonga than Mzuzu (3.3%). On the other
hand, Kasumulu reported to have high market share of 76.2% than Mbeya with 20.5%
showing that trader stands more chance of choosing Kasumulu than Mbeya as a destination
to sell the fish products.
For fish traders using Mchinji border post, the results indicate that Lilongwe is more
attractive to fish traders than Mchinji, Chipata and Luangwa markets. In terms of market
share between Lilongwe and other markets, the study established that Chipata had a
relatively high market share of 48.8%. A fish trader has a greater chance (48.8%) to export
fish products to Chipata than Luangwa (3%) in Zambia.
Figure 24 shows sizes of markets in relation to the computed total attractiveness value by
the Huff gravity model.
99
Figure 24: Overall market attractiveness among the interacting locations
Overall market attractiveness from the Huff gravity model shows that Mwanza, Limbe,
Mzuzu, Kasumulu, Thyolo and Lilongwe have more potential of being colonized by fish
traders (importing and exporting) between Malawi and neighboring countries than other
100
markets as witnessed by high market attractiveness value in the range of 203.4 to 466.
Limbe has two dots as it is interacting with Mozambique through Tete and Milanje hence
the model assessed its attractiveness from the two markets outside Malawi.Limbe, followed
by Thyolo showed to be more attractive to traders using routes to Milanje as having more
potential of being colonized for trade of fish products. Considering the markets with high
total market attractiveness, Figure 25 shows the markets with high market value in each
border post among the interacting locations for the specified trade route. Kasumulu and
Mzuzu had high market attractiveness for locations interacting through Karonga (Songwe)
border, Lilongwe for Mchinji border, Mwanza market for Mwanza border and Limbe for
Mulanje border post. Much as Mwanza, Limbe, Mzuzu, Kasumulu and Lilongwe displayed
high values for overall market attractiveness, fish trader’s choice for a location for the fish
products was computed by considering the market shares for each interacting location as
explained in the next section.
101
Figure 25: Markets with highest total attractiveness per border post
The finding from Huff gravity model stresses on the role of distance and population of an
area in influencing choice of a final destination to sell the fish products. The results suggest
102
that population of an area creates demand for fish products which influences attractiveness
of the market for trading activities. However, choice of the actual destination relies much
on the distance a trader will travel to sell the product. This is the case as market share for
locations that are close to each other showed high probability while low probability was
observed with locations that are far from each other. This is because distance determines
the cost incurred for transport with a direct relationship. However, some factors not
captured by Huff gravity model but PCA includes monetary transport cost, personal risks
and accessibility of the fish market play significant role for a trader to choose trade route
and destination.
This result validates the study of Ullman (1980) that revealed that the greater the distance,
between trip origin and trip destination, the less likelihood of a trip occurring and the lower
the frequency of trips. Levy and Weitz, (2007) emphasized that distance has a greater
influence over store size on shopping probability than other factors including population.
By considering the overall findings from the huff gravity analysis, we find that fish traders
are more sensitive to distance followed by demand for a particular location.
4.7 Challenges facing informal cross-border fish traders
The fourth specific objective was to analyse the challenges fish traders face when using
informal trade routes. To ensure that this objective is met, data were collected using a semi-
structured questionnaire on challenges fish traders face when using informal routes. The
responses by the traders were coded in SPSS to tabulate the main challenges fish traders
face when using informal trade routes. A two-sided z-test and Bonferroni correction were
103
used to assess significant challenges informal traders were facing when using informal
trade routes. On the basis of the analysis, the following were the results;
According to figure 26, results of the study indicated that fish traders face various
challenges including corruption (11.9%), lack of knowledge regarding cross border trade
requirements (13.7%), lack of licences (16.3%), inability to carry bulky goods (14%), poor
or inadequate infrastructure (13.4%), sexual harassment (7.6%), delays at border post
(13.7%) and crime (9.5%). The study indicated that lack of recognition and licences was
the major challenge among the sampled traders.
Figure 26: Challenges fish traders are facing in cross border fish trade
However, the test statistic for differences in challenges faced by formal and informal
traders using z-test showed that inability to carry bulky goods and poor infrastructure were
11.9
13.7
16.3
14.0
13.4
7.6
13.7
9.5
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0
Corruption
Lack of knowledge
Lack of recognition and lisences
Inability to carry bulky goods
Poor or inadequate infrastructure
Sexual harrassment
Delays at border post
Crime and theft
Percent of the respondents
Ch
alle
nge
s
104
significant challenges informal fish traders were facing when using informal trade routes
(Table 9).
Table 9: Challenges faced by fish traders
Challenges faced Type of fish trader
Formal [(%) frequency] a or
b
Informal [(%) frequency] a or
b
Corruption (72) 67 a (64) 222 a
Lack of knowledge (71) 66 a (77.4) 267 a
Lack of recognition and
licences
(91.4) 85 a (90.4) 312 a
Inability to carry bulky
goods
(88.2) 82 a (74.8) 258 b
Poor or inadequate
infrastructure
(57) 53 a (78.8) 272 b
Sexual harassment (40.9) 38 a (42.3) 146 a
Crime and theft (53.8) 50 a (52.8) 182 a
Significant difference traced basing on subscript a and b where items with the same
subscript are not significantly different at p = 0.05
Inability to carry bulky goods was another major challenge faced by informal traders when
using informal trade routes. To this effect a trader at Karonga was quick to state that:
105
“… if we carry large volumes of fish, movement becomes a challenge… the
roads are small hence limited to use of bicycles and motorcycles, and not
vehicles… so we carry small volumes per trip from sources to destination”
This result confirmed the study by Morris and Dadson (2000) that identified inability to
carry bulky goods as a main challenge informal fish trader’s face in cross border fish trade.
Empirical evidence has also revealed that the poor or inadequate infrastructure along
informal trade routes challenges the informal traders to operate properly from sources to
destination. This finding agrees with report by the Strategic Business partnership for
Growth in Africa (2007) for the study conducted in Johannesburg which highlighted that
poor infrastructure like accommodation and transport facilities along informal routes are
some of main challenges faced by informal traders.
4.8 Chapter summary
The foregoing chapter offered the qualitative, descriptive and empirical analysis of the
study. Firstly, the study observed 78.8% of the fish traders are informal. Informal fish
traders choose to trade their fish products through other routes than border sites where
official documentation and clearances are made. The study also revealed that annual
informal fish volume traded between Malawi and her neighbouring is estimated at 77,128.9
metric tonnes and valued at $127,494,491.39 dollars. Choice of the trade route by fish
traders were based on the following factors which are significant: route distance, road type,
location of final destination, season, climate, mode of transport and personal safety. Route
distance, mode of transport, demand or population of customers, monetary transport cost,
106
season, climate, personal safety risks and presence of alternative destinations were the main
factors influencing fish traders to choose a destination for the fish products. Even though
there is much preference on informal trade routes by most fish traders, challenges are
inevitable. The study indicate that 16% lack recognition and licences as a main setback.
However, statistics (Z-test) show that inability to carry bulky fish and poor infrastructure
are the significant challenges the fish traders are facing when using informal routes. The
findings and discussions provide throughout explanation on existing routes, choice factors
and challenges faced by informal traders along informal routes driving study conclusions
and subsequent policy recommendations.
107
CHAPTER FIVE
CONCLUSIONS, IMPLICATIONS AND RECOMMENDATIONS
5.1 Chapter overview
This chapter concludes the study and presents its contribution to the existing body of
knowledge about geographical analysis of informal fish trade routes in Malawi and
adjourning countries. The chapter constitutes three main sections: the study conclusions,
implications, and recommendations.
5.2 Conclusions
In terms of informal fish trade routes used by fish traders, the study mapped various
informal trade routes bypassing the official border post including Songwe bypass, Nyasa,
January and Timothy routes in Karonga; Fight, Nthache and Kanyani routes in Mwanza;
Mkanda, Zalewa and Eleven routes in Mchinji; and Mtambalika, Maliera and Zumbira
routes in Mulanje. The main informal routes identified by the study were the small roads
joining the main route immediately before and after passing the official border posts. The
use of informal trade routes by fish traders is mainly as a result of inaccessibility of trading
certificates due to additional expenses hence making the certificate look expensive for
small cross border fish traders.
108
Much of the export and imports of fish products between Malawi and neighbouring
countries are through informal routes. Overall magnitude shows that an annual estimate of
77,128.9 metric tonnes worth US$127,494,491.39 is expected to be traded informally using
informal routes against a formal annual estimate of 1,870.4 metric tonnes valued at
US$3,835,910 dollars. Informal fish trade routes allow significant quantities of fish
products to be traded informally with domination of small pelagic fishes. This study has
therefore established that cross border fish trade is dominated by informal trade which is
entirely undocumented.
Fish traders choose informal trade because of cross-border regulations that are perceived
to be restrictive for example to export fish products, a trader is required to possess a sanitary
certificate, export and import permit, COMESA Simplified Trade Regime, and all these
documents demand processing fee and duty stamp fees which most traders could not afford.
Fish traders therefore use alternative way by trading fish products informally using
informal routes. Distances from sources to destination also influences fish traders to trade
informally. Fish traders were reported to choose routes with short distances unlike long
distance routes that are passing through the official border post. Short distances cut down
the cost of transportation for fish traders, which undoubtedly constitute a significant portion
of the overall cross-border transaction cost for fish traders.
Geographical factors were found to influence fish trader’s choice of a trade route and
destination. The critical factors influencing choice of a trade route were; route distance,
season, localised demand of fish products, and presence of alternative destinations
109
associated with the route. Regarding choice of a destination by the fish trader, consideration
on route distance, location of the destination, personal safety and risks, and presence of
alternative destination proved having significant influence on the choice of destination by
fish traders.
The study has also been able to establish that inability to carry bulky fish products and poor
infrastructure associated with informal routes are the major challenges informal traders
face when using informal routes from sources to destination. Fish traders carry small
quantities of fish products from sources to destination depending on the nature of informal
routes per trip.
From the Huff gravity model, the study further concludes that fish traders are more
sensitive to distance between interacting markets such that the closer the points the higher
the likelihood of the two locations in serving as source and destination of fish products
which influences the exact route to be used. The trader’s choice of a route and destination
in relation to distance also encompass other accompanying factors like the conditions of
the route. However, Limbe market violate the basic assumption of Huff gravity model
because the study proved Limbe to be more attractive regardless being located far from
main fish sources. This showed that demand of fish products is considered as very
important pull factor when choosing final destination.
110
5.3 Implications of the study’s conclusion
As it appears, informal trade in fish products through informal routes is far greater (over
90%) than formal trade for both imports and exports. This reveals that government is losing
revenues that could have helped in boosting the country’s economy. So, if such situation
is left unchecked, growth of informal fish trade might significantly reduce the contribution
of fisheries sector to economic development of the country. Informal trade will ultimately
reduce the total government collections from cross border fish trade because the
government does not collect taxes from ICBT.
Knowledge on the critical geographical factors influencing choice of trade routes provide
a better understanding on how fish traders choose trade route and destination. More
importantly, insights on route characteristics linked to transport of fish products by traders
can guide Government and non-governmental organisations to device more effective
transport strategies and service delivery to traders’ actual needs when using the routes from
sources to destination.
The limitation of fish traders to carry large volumes of fish due to poor road conditions
hinders growth of individual businesses. Traders have no chance to increase their
businesses beyond certain volumes as they are guided by condition of the roads.
111
5.4 The study’s recommendations
The study therefore derived the following key recommendations:
a) Government and Non-Governmental Organizations’ (NGOs) responsible for the
growth of the fisheries sector should deploy vehicles to border posts for regular
patrols along informal fish trade routes. This will help tracking fish products being
traded informally and decide interventions to promote or barn informal fish trade.
b) Fishery Authorities and Non-Governmental Organizations’ (NGOs) in the fisheries
sector should assist informal fish traders to obtain trading documents for cross
border fish trade by reducing certification fees and introducing certification sites at
the borders.
c) Capacity-building through educating the informal cross-border fish traders on the
existing regional trade agreements for instance tariff regimes and product
standards. Fish traders should also be civic-educated on the relevance of formal fish
trade for food safety and development of the country.
d) Improvement in road infrastructure should be done to allow informal fish traders to
transport large volumes of fish products from sources to destination along chosen
routes.
e) Huff gravity model considers a multiplicative utility function with only two
variables, size of market and travel time (distance). This results into a potential bias
as choice of a market may be influenced by several other factors beyond market
size and distance hence further studies need to pay more attention on other
influencing variables. For example, the model assessed attractiveness and market
share for Limbe fish market taking into account distance from the fish sources and
112
demand in Limbe leaving other factors that may as well attract traders to colonize
Limbe.
f) Future research can look at the economic factors influencing informal cross border
fish trade along informal routes connecting Malawi and neighboring countries.
g) Trader route choice behavior can be used as an important tool in assessing market
potential for further market infrastructure development.
113
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125
APPENDICES
Appendix 1: Research ethics
126
Appendix 2: Fish species and products mostly traded
Local
name
Scientific Name Fish product / Form in market
1 Carapau Scomber spp Fresh, Sundried, Dried and salted, Dried
2 Usipa Engraulicypris sardella Fresh, Sundried, Smoked, Dried,
Paraboiled, Fried
3 Mackerel Scomber scombrus Fresh, Frozen
4 Chambo Oreochromis spp Fresh
5 Tilapia Tilapia spp. Fresh, Frozen, Dried, Fried
6 Utaka Copadichromis species Fresh, Sundried, Smoked, Dried and
salted, Dried, Paraboiled, Fried
7 Kiwirere Unidentified Fresh, Sundried, Dried and salted, Dried
8 Mutella Mutela alata Sundried, Smoked, Dried, Fried
9 Chikowa Unidentified Sundried, Smoked, Dried and salted
10 Kapenta Clupeids species Sundried, Dried and salted
11 Bakayawo Unidentified Fresh, Sundried, Dried and salted
12 Matemba Barbus paludinosus Sundried, Dried, Paraboiled, Fried
13 Mcheni Rhamphochromis spp Fresh, Sundried, Frozen, Smoked, Fried
127
14 Pende Unidentified Fresh, Smoked
15 Bonya Unidentified Sundried, Smoked
16 Makwale Haplochromis spp Sundried
17 Ngoshola Unidentified Fresh, Smoked
18 Sanjika Opsaridium microlepis Fresh
19 Catfish Clarias gariepinus Fresh, Sundried, Smoked, Dried
20 Madfish Unidentified Fried
21 Makakana Oreochromis
mossambicus
Dried
22 Sango Unidentified Fresh, Smoked, Dried
23 Masoghur Bathyclarias species Fresh
24 Mbuvu Bargus meridionalis Fresh
25 Kampango Bargus meridionalis Fresh
128
Appendix 3: Fish species, sources, destination and quantities traded (Mwanza)
Species Source Distination Quantity (kgs)
Bakayawo
Tete Mwanza market 110
Zobwe Mwanza market 80
Zobwe Mwanza market 20
Tete Lunzu 45
Chikowa Tete Mwanza market 30
Kapenta
Zobwe Mwanza market 25
Tete Blantyre market 120
Tete Mwanza market 45
Chambo Blantyre Tete 40
Pende Tete Mwanza market 25
Tilapia Tete Mwanza market 45
Usipa Blantyre Mwanza market 40
Mackerel
Tete Mwanza market 1050
Tete Blantyre 210
Tete Zalewa 240
Tete Lunzu 120
Makwale
Tete Mwanza market 40
Tete Blantyre market 170
Mcheni
Limbe Zobwe 120
Blantyre Zobwe 50
Blantyre Tete 25
Blantyre Tete 75
Njole Limbe Zobwe 50
Pende
Tete Lunzu 25
Tete Blantyre market 30
Tete Zalewa 25
Tilapia Tete Blantyre market 45
129
Tete Mwanza market 80
Usipa
Blantyre Zobwe 40
Blantyre Zobwe 55
Blantyre Zobwe 80
Lunzu Tete 90
Blantyre Tete 235
Blantyre Tete 15
Utaka
Limbe Zobwe 69
Blantyre market Zobwe 50
Blantyre market Zobwe 25
130
Appendix 4: Fish species, sources, destination and quantities traded (Mchinji).
Species Source Destination Quantity
Chambo Kamwendo Chipata 100
Salima Chipata 310
Lilongwe Chipata 40
Mackerel Luangwa Mchinji 140
Zambia border Lilongwe 40
Chipata Mchinji 110
Chipata Lilongwe 9330
Chipata Mkanda 190
Matemba Kwamwendo Chipata 18
Mkanda Chipata 160
Mchinji Chipata 90
Mcheni Salima Chipata 90
Tilapia Chitipa Mchinji 230
Chitipa Kamwendo 40
Chitipa Mkanda 100
131
Usipa Kapiri Chipata 10
Zambia border Kamwendo 40
Lilongwe Chipata 59
Mchinji Chipata 250
Kamwendo Chipata 204
Mkanda Chipata 90
Utaka Kapiri Chipata 14
Mchinji Chipata 294
Kamwendo Chipata 7
Mkanda Chipata 160
132
Appendix 5: Fish species, sources, destination and quantities traded (Karonga-
Songwe)
Species Source Destination Quantity (kgs)
Chambo
Karonga mrket Kasumulu 180
Kapolo Kasumulu 168
Karonga market Kasumulu 490
Ngala Kasumulu 30
Kapenta
Kyela Karonga market 1020
Mbeya Mzuzu 2,424
Mbeya Karonga market 170
Madfish
Karonga market Kasumulu 38
Karonga market Kasumulu 65
Makwale Mbeya Mzuzu 100
Masoghunju Karonga market Kasumulu 75
Mbuvu Mayovya Kasumulu 50
Mutella
Mbeya Karonga market 410
Kyela Karonga market 190
Mbeya Karonga market 400
Mbeya Karonga market 50
Mbeya Karonga market 280
Ngoshola
Karonga mrket Kyela 110
Karonga mrket Kasumulu 40
Songwe border market Kasumulu 40
Sango
Kapolo Mbeya 430
Karonga mrket Kyela 250
Karonga mrket Kasumulu 50
133
Karonga mrket Mbeya 115
Mponda Kasumulu 20
Karonga mrket Kasumulu 35
Karonga mrket Kasumulu 35
Karonga mrket Kasumulu 65
Sanjika
Karonga mrket Kasumulu 20
Karonga mrket Mbeya 60
Karonga mrket Kasumulu 65
Usipa
Kabwe Kasumula 551
Kapolo Kasumulu 356
Karonga mrket Kasumulu 200
Karonga mrket Kasumulu 50
Karonga mrket Mbeya 215
Kapolo Mbeya 250
Karonga mrket Kasumulu 95
Songwe border market Kasumulu 30
134
Appendix 6: Fish species, sources, destination and quantities traded (Muloza).
Species Source Destination Quantity
Tilapia Milanje Bangwe 80
Chikowa
Milanje Thyolo 180
Milanje Blantyre 250
Milanje Luchenza 50
Milanje Bangwe 130
Milanje Blantyre 50
Karapao
Milanje Thyolo 650
Milanje Bangwe 560
Milanje Blantyre 750
Milanje Bvumbwe 200
Milanje Chikuse 700
Milanje Chilobwe 160
Milanje Chinakanaka 390
Milanje Chirimba 40
Milanje Chisambo 140
Milanje Chisitu 50
Milanje Chitakale 1,000
Milanje Blantyre 270
Milanje Goliath 150
Milanje Limbe 110
Milanje Limbuli 380
Milanje Lujeri 290
Milanje Machewe 190
Milanje Maveya 150
Milanje Mbayani 350
Milanje Minimini 90
135
Milanje Mkando 320
Milanje Mpholiwa 260
Milanje Ruo 590
Milanje Soza 90
Milanje Thabwa 280
Kiwerere
Milanje Blantyre 140
Milanje Blantyre 90
Milanje Chitakale 50
Milanje Limbuli 215
Milanje Luchenza 50
Milanje Mkando 220
Milanje Limbuli 50
Milanje Thyolo 50
Milanje Blantyre 55
136
Appendix 7: Magnitude of fish trade
Karonga
Volume Value
Chambo Annual Est 1,279,968.75 4,079,900,390.63
Tons & USD 1,279.97 5,513,378.91
Kapenta Annual Est 3,382,704.00 6,224,175,360.00
Tons & USD 3,382.70 8,411,047.78
Madfish Annual Est 92,700.00 97,798,500.00
Tons & USD 92.70 132,160.14
Makwale Annual Est 288,000.00 489,600,000.00
Tons & USD 288.00 661,621.62
Masoghunju Annual Est 216,000.00 259,200,000.00
Tons & USD 216.00 350,270.27
Mbuvu Annual Est 108,000.00 108,000,000.00
Tons & USD 108.00 145,945.95
Mutella Annual Est 2,656,800.00 4,250,880,000.00
Tons & USD 2,656.80 5,744,432.43
Sango Annual Est 2,248,061.54 2,420,989,349.11
Tons & USD 2,248.06 3,271,607.23
Sanjika Annual Est 417,600.00 292,320,000.00
Tons & USD 417.60 395,027.03
Usipa Annual Est 9,302,165.58 13,953,248,372.09
Tons & USD 9,302.17 18,855,741.04
Ngoshola Annual Est 495,900.00 743,850,000.00
Tons & USD 495.90 1,005,202.70
Total 20487899.9 32919961971.8
20487.9 44091408.1
137
Mwanza
Fish species Volume Value
Bakayawo Annual Est (kgs) 771,120.00 1,156,680,000.00
Tons & USD 771.12 1,563,081.08
Chambo Annual Est (kgs) 172,800.00 570,240,000.00
Tons & USD 172.80 770,594.59
Chikowa Annual Est (kgs) 333,000.00 444,222,000.00
Tons & USD 333.00 600,300.00
Kapenta Annual Est 1,058,400.00 2,646,000,000.00
Tons & USD 1,058.40 3,575,675.68
Mackerel Annual Est 4,435,200.00 3,193,344,000.00
Tons & USD 4,435.20 4,315,329.73
Makwale Annual Est 403,200.00 685,440,000.00
Tons & USD 403.20 926,270.27
Mcheni Annual Est 1,044,900.00 1,609,146,000.00
Tons & USD 1,044.90 2,174,521.62
Njole Annual Est 144,000.00 86,400,000.00
Tons & USD 144.00 116,756.76
Pende Annual Est 240,000.00 840,000,000.00
Tons & USD 240.00 1,135,135.14
Tilapia Annual Est 675,000.00 810,000,000.00
Tons & USD 675.00 1,094,594.59
Usipa Annual Est 2,484,720.00 2,608,956,000.00
Tons & USD 2,484.72 3,525,616.22
Utaka Annual Est 272,160.00 479,682,000.00
Tons & USD 272.16 648,218.92
Total 11794500 15130110000
11794.5 20446094.6
138
Mchinji
Volume Value
Mcheni Annual Est 19,440.00 40,824,000.00
Tons & USD 19.44 55,167.57
Chambo Annual Est 972,000.00 3,207,600,000.00
Tons & USD 972.00 4,334,594.59
Mackerel Annual Est 20,748,000.00 15,768,480,000.00
Tons & USD 20,748.00 21,308,756.76
Tilapia Annual Est 690,218.18 828,261,818.18
Tons & USD 690.22 1,119,272.73
Usipa Annual Est 1,439,501.54 2,560,651,775.15
Tons & USD 1,439.50 3,460,340.24
Matemba Annual Est 337,680.00 717,570,000.00
Tons & USD 337.68 969,689.19
Utaka Annual Est 714,384.00 1,260,887,760.00
Tons & USD 714.38 1,703,902.38
Total 24,921,224 24,384,275,353
24,921.2 32,951,723.5
Mulanje
Volume Value
Chikowa Annual Est 783,000.00 1,044,522,000.00
Tons & USD 783.00 1,411,516.22
Carapao Annual Est 17,341,389.47 18,607,310,905.26
Tons & USD 17,341.39 25,145,014.74
Kiwilele Annual Est 1,628,100.00 2,035,125,000.00
Tons & USD 1,628.10 2,750,168.92
Mikhamba Annual Est 90,000.00 126,000,000.00
139
Tons & USD 90.00 170,270.27
Tilapia Annual Est 79,200.00 95,040,000.00
Tons & USD 79.20 128,432.43
Bakayao Annual Est 3,600.00 3,578,400.00
Tons & USD 3.60 4,835.68
Total 19,925,289.47 21,911,576,305
19,925.3 29,610,238.3
140
Appendix 8: Study Questionnaire
SECTION A: PREAMBLE
Name of Enumerator:
Date of interview:
Checked by:
Dear correspondent (Ethics statement),
I/We am/are doing a survey on geographical analysis of informal fish trade routes in
Malawi and other countries under the Africa Fish Trade Program. The data we collect will
be only used for research purposes and will help come up with policy recommendations to
improve benefits from fish trade in the country, region and Africa as a whole. We hope that
you will be free to provide me/us with true and accurate data and information. Please feel
free to ask any questions or raise any issues you might have. You can terminate this
interview at any point should you wish so. I/We hope that I/we can come back to give the
results of these surveys to your group, both for your information and your further inputs.
Thank you for your participation.
SECTION B: IDENTIFICATION
1) Country (Nationality of the
trader)…………….......……………………………
141
2) Location of
respondent……………………………………………………..…………
3) Name of border………………….....…...………………….....…...…
4) Contacts ………………….....…...………………….....…...…
SECTION C: DEMOGRAPHIC AND SOCIO-ECONOMIC FACTORS
5) Type of respondent’s activity/
occupation…………………………………..………...
6) Respondent gender (male/female)
………………….………………………...………
7) Age of
respondent…………………...………………………………………………...
8) Marital
status…………………...………………………………………………...........
9) Household
size…………………...………………………………………………........
10) Highest Education level (Number of years spent in school)
…………………............................................................…...
11) Total income from fish trading per
month………………….....…...………………….....…...…
142
SECTION D: FISH PRODUCTS TRADED, TRADING DOCUMENTS AND
MEANS OF TRANSPORT
12) Please indicate fish species traded (start with the mostly traded species)
Species
Product Source
(Capture/Aquacul
ture)
Country of origin
(if you know)
Country of
destination (if
you know)
13) What trading documents are you possessing? (Tick all that apply)
Document type Tick
Phyto-sanitary certificate (Food safety and sanitary
certificate)
Export/import permit
License (Fishing and trading fisheries products
license)- importers only
143
Other (specify)
Comment □Formal □Informal
14) What level of fish trader are you?
□ Retailer □ Wholesaler □ Middle trader □Other Specify ____
15) What means of transport do you usually use to trade your fish across
boarders? (Tick all that apply)
□Bicycle □Truck □walking □Bus □Own car □Other Specify ____
16) Which transportation means among the mentioned above is the most efficient
and cheap?
□Bicycle □Track □walking □Bus □Own car □Other Specify ____
17) Which fish product (i.e dried chambo) do YOU usually trade in? (Starting
with the most traded)
Fish product
Quantity
per trip
(kgs)
Reasons for preference of that particular species
(1) Commonly found (2) long shelf life (3) Good and easy to preserve (4) High demand
by customers (5) Cheap (6) High profitability (7) Other (Specify)
144
SECTION E: FISH TRADE ROUTES USED BY THE TRADER AND CHOICE
FACTORS.
18) What routes do YOU use from source to destination? (starting with most
frequently used route)
Source
(Exact
place)
Mai
n
cent
ers
alon
g the
rout
e (1)
Mai
n
cent
ers
alon
g the
rout
e (2)
Actual
destinat
ion
(Exact
place)
Reas
ons
for
using
the
route
(use
codes
)
Reasons for
choosing the
destination (use
codes)
Tim
e to
reac
h the
desti
natio
n
(Min
/hou
rs/da
ys)
Ho
w
lon
g
doe
s it
take
to
use
this
rout
e?
How
man
y
time
s do
you
use
this
route
per
mont
h?
Quantities
traded
using the
route per
month?
145
(1) Location of the source (2) Location of the final destination (3) Demand (population)
(4) Route distance (5) Accessibility (road type, quality of roads) (6) Seasons (7) Nature of
the route (8) Personal safety risks (9) Mode of transport (10) Fish product (11) Presence
of alternative destination (12) Monetary cost of transport (13) Travel time (14) other
factors (specify).
19) What are the main stop points along the route from sources to destination?
Stop points (Place) Activity done at the stop point
20) What alternative destinations for the fish products are available when using
the chosen route? (starting with most frequently used route)
Note: Routes other than the one using currently
Route Main
centers
along
the
Main
centers
along
the
Alternative
destinations
Reasons for
choosing this
alternative
destination
Time to reach the
alternative
destination(Min/hours/days)
146
route
(1)
route
(2)
(Refer to
answer codes)
(1) Location of the source (2) Location of the final destination (3) Demand (population)
(4) Route distance (5) Accessibility (road type, quality of roads) (6) Seasons (7) Nature of
the route (8) Personal safety risks (9) Mode of transport (10) Fish product (11) Presence
of alternative destination (12) Monetary cost of transport (13) Travel time (14) other
factors (specify).
Fish trade routes and seasonality
21) Does seasonality affect you in the choosing the trade route from sources to
destination?
□ Yes □ No
22) If yes, what factors do you consider when choosing a trade route in the
following seasons of the year? What are the main activities done along the
route in these seasons?
Season Factor Main activities per season
147
Cold season
Hot season
Rainy
season
(1) Location of the source (2) Location of the final destination (3) Demand (population)
(4) Route distance (5) Accessibility (road type, quality of roads) (6) Seasons (7) Nature of
the route (8) Personal safety risks (9) Mode of transport (10) Fish product (11) Presence
of alternative destination (12) Monetary cost of transport (13) Travel time (14) other
factors (specify).
Trader’s perceptions on geographical factors and choice of fish trade route.
148
23) How would you rate the importance of the following aspects of a trade route
when making a decision about the choice of final destination?
Very
important
Important Neutral Not
important
Not
important
at all
A Location of the
source
B Location of the
final destination
C Demand
(population)
D Route distance
E Road type
F Quality of roads
G Travel time
H Monetary cost of
transport
I Presence of
alternative
destination
J Seasons
K Mode of transport
149
L Personal safety
risks
M Climate
24) How would you rate the importance of the following aspects of a destination
when making a decision about the choice of final destination?
Very
important
Important Neutral Not
important
Not
important
at all
A Location of the
source
B Location of the
final destination
C Demand
(population)
D Route distance
E Road type
F quality of roads
G Travel time
H Monetary cost of
transport
150
I Presence of
alternative
destination
J Seasons
K Mode of transport
L Personal safety
risks
M Climate
SECTION F: CHALLENGES IN CROSS BORDER FISH TRADE.
25) What challenges do YOU face when using a chosen trade route? (Tick)
□ Exposure to corrupt border officials because of lack of knowledge about their rights
(Extortion and bribery)
(1) Agree (2) Strongly agree (3) Neutral (4) Disagree (5) Strongly disagree
□ Lack of knowledge of customs clearance and handling requirements.
(1) Agree (2) Strongly agree (3) Neutral (4) Disagree (5) Strongly disagree
□ Lack of recognition and licenses.
(1) Agree (2) Strongly agree (3) Neutral (4) Disagree (5) Strongly disagree
□ Inability to carry bulky products, some of which require specialized handling and
shipping.
151
(1) Agree (2) Strongly agree (3) Neutral (4) Disagree (5) Strongly disagree
□ Poor or inadequate infrastructure (for example, lack of water and telephones).
(1) Agree (2) Strongly agree (3) Neutral (4) Disagree (5) Strongly disagree
□ Sexual harassment
(1) Agree (2) Strongly agree (3) Neutral (4) Disagree (5) Strongly disagree
□ Delays at the border post
(1) Agree (2) Strongly agree (3) Neutral (4) Disagree (5) Strongly disagree
□ Crime and theft
(1) Agree (2) Strongly agree (3) Neutral (4) Disagree (5) Strongly disagree
□ Other (specify) _________________________________
Thank you for your co-operation
