ETrade Readiness Assessments of Land-Locked Developing Countries
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eTrade Readiness Assessments of Land-Locked Developing Countries
Preface
International trade, including transactions conducted Mali, Nepal, Uganda and Zambia. The eT Ready
through electronics means, can be an engine for of Niger is underway and additional requests from
inclusive economic growth and poverty reduction LLDCs were received from Burundi, Mongolia and
as recognized by the 2030 Agenda for Sustainable Zimbabwe.
Development, the Addis Ababa Action Agenda and
the Vienna Programme of Action (VPoA). Despite clear This note looks at the digital readiness of LLDCs
benefits, the integration of landlocked developing and highlights key challenges and related policy
countries (LLDCs) in the global trade has been uneven, recommendations. It draws on the findings of eT
and the 32 LLDCs account for less than one per cent of Readies undertaken in LDCs, including LLDCs so far,
global merchandise trade.1 the results of an eT Ready stock-taking survey carried
out online during February-March 2019 and the
Electronic commerce is one of the main drivers of outcome of the stocktaking workshop on the conduct
growth and innovation in the world today. It has and implementation of eT Readies held in Geneva in
significant potential for developing countries and for April 2019.2 It also provides recommendations for the
micro, small and medium-sized enterprises (MSMEs). sustainable inclusion of these countries in international
If applied properly, e-commerce can make them trade with regard to seven policy areas: e-commerce
more competitive and allow them to grow and thrive strategies, ICT infrastructure, payment solutions,
in the global market. Indeed, the digitalization of legal framework, trade facilitation/logistics, skills and
economic activities could facilitate LLDC partici- financing SMEs.
pation in international trade, especially by helping
to overcome traditional trade barriers and to move I would like to thank the Governments of Germany,
more commerce online. To do so, governments need Sweden, Australia as well as the Enhanced
to adapt their policies and improve the coordination Integrated Framework (EIF) and the Islamic Trade
across ministries around the range of policies related Finance Corporation (ITFC) which are currently
to e-commerce and the digital economy. They also promoting the digital development of developing
need to engage with the private sector, as well as civil countries by supporting UNCTAD’s eT Ready
society, to prepare the policy and legal frameworks Programme. I also wish to acknowledge eTrade for
needed, ensure the roll out of affordable ICT infrastruc- all partners who contribute to enriching the content
ture, and adapt the education system to develop the of the assessments and increasingly partnering with
work force needed for the digital economy. UNCTAD in support of the implementation of the eT
Readies recommendations.
Ensuring that the potential benefits of e-commerce
reach MSMEs in LLDCs requires a strong prioritiza- The UNCTAD eTrade Readiness Assessments highlight
tion from governments and a greater commitment the opportunities that e-commerce can offer for
from development partners to enhance the digital economic development. Like many developing and
readiness and to avoid the widening of inequalities. least developed countries, the LLDCs have enormous
potential to embrace the digital economy and make it
The UNCTAD Programme on Rapid eTrade Readiness work for them. To carry out the necessary fundamen-
Assessments (also known as eT Readies) launched tal reforms, there is an urgent need for scaling up the
in 2017 has been designed to contribute to the support from the international community. Given the
evidence-to-policy approach. These assessments are cross-cutting nature of e-commerce, better synergies
conducted at the request from developing countries and cooperation between development partners
to help evaluate their e-commerce ecosystems and and governments are required to help implement
provide recommendations regarding policies that the recommendations contained in our assessments.
should be devised to enhance their ability to engage More attention should be paid to the digital dimension
in and benefit from e-commerce. Out of the 22 least of development for the benefit of all.
developed countries (LDCs) that have been assessed in
the past two years, ten are also LLDCs: Afghanistan, Shamika N. Sirimanne
Bhutan, Burkina Faso, Lao PDR, Lesotho, Malawi, Director, Division on Technology and Logistics, UNCTAD
1
http://unohrlls.org/custom-content/uploads/2019/01/LLDCs_Kazakhstan_Ministerial_Meeting_Report_010319_Digital.pdf
2
The full results of the stock-taking survey are available in eTrade Readiness Assessments of LDCs: Policy Impact and Way Forward: https://
unctad.org/en/PublicationsLibrary/dtlstict2019d7_en.pdf
2 2
Obstacles facing the LLDCs in their digital
development
While the eTrade Readiness Assessments are The findings of the Rapid eTrade Readiness
country-specific, taking into account each country’s Assessments conducted in ten LLDCs highlight three
development path, several common key policy particular bottlenecks in infrastructure, e-commerce
areas deserve special consideration as per below. strategies and legal frameworks.
Being landlocked brings additional challenges and
structural constraints that inhibit efforts to develop
an e-commerce ecosystem.
Limited awareness of Inappropriate education for the
e-commerce relevance among digital economy.
policymakers and lawmakers,
consumers and businesses.
Limited Internet access in rural/ Lack of business development
remote areas and costly access to fixed skills and adequate e-commerce skills
and mobile-broadband Internet. for MSMEs.
Overreliance on cash-based
Unsuitable financial mechanisms
transactions, plus low access to
for start-up enterprises to engage in
and limited experience with online
e-commerce.
payments and the use of credit cards.
Inadequate facilities for physical Persistent barriers for women
delivery of online purchases. and youth to engage in e-commerce,
preventing the leveling of playing fields
through increased inclusivity.
Weak legal and regulatory
frameworks, including protection of Lack of statistical data on electro-
consumers online. nic commerce.
3
1. Infrastructure
ICT infrastructure
The need for investment in high-speed broadband Fixed telephony is shunned by people in LLDCs and
Internet is mentioned frequently in the eTrade other developing countries where mobile telephony
readiness assessments for LLDcs. Only 32 per cent of is increasingly substituting for voice and data traffic
the population of LLDCs are using the Internet. The (Table I). Additional investments are needed in the ICT
lack of affordable connectivity and access to relevant sector to facilitate the growth of services delivery in
devices are the main impediments to any individual, 3G/4G by mobile network operators in a competitive
firm or organization benefiting from the economic environment, as well as public-private partnerships
and social opportunities that can be derived from (PPPs) to strengthen backbone infrastructure.
digitalization. Cross-border connections also result in
higher Internet prices.
Table I. Fixed and mobile-broadband subscriptions and Internet users
Fixed broadband Active mobile-broadband Internet
subscriptions per 100 subscriptions per users, 2017
inhabitants, 2018 100 inhabitants, 2018 (%)
World 15.6 73.2 56.9
Developed economies 34.4 101.3 83.0
Developing economies 7.8 62.8 45.9
LDCs 0.6 29.7 18.7
LLDCs 4.6 49.7 32.0
Afghanistan 0.0 18.8 13.5
Bhutan 2.3 101.6 48.1
Burkina Faso 0.1 29.9 16.0
Lao PDR 0.6 42.0 25.5
Lesotho 0.3 59.0 29.0
Malawi 0.1 27.2 13.8
Mali 0.6 30.3 13.0
Nepal 2.8 47.5 34.0
Uganda 0.0 33.6 23.7
Zambia 0.2 56.6 27.9
Source: ITU, World Telecommunication/ICT Indicators (WTI) Database 2019.
Physical infrastructure
Geographical constraints and dependencies on the The LLDCs eT Readies stories presented in this note
efficiency of transport networks in neighbouring underscore the fact that e-commerce could represent
countries, as well as long-distances, toll fees and a solution to overcome logistical and geographi-
non-tariff barriers, make trade logistics expensive. cal barriers and tap into other markets. As in other
4
developing countries assessed, last-mile delivery in some East African countries. Transport, logistics
continues to pose a challenge since postal services and regulatory bottlenecks also hamper e-commerce
in remote areas have problematic delivery times and growth mainly due to red tape in customs clearance
costs. Local entrepreneurs are developing innovative and prohibitive transport costs.
logistic solutions, such as the introduction of drones
Key policy recommendations
■■ Increase access to fast, affordable and reliable Internet, as well as last-mile connectivity in rural
and less-populated areas to reduce disparities in Internet access and open e-commerce opportunities for
larger segments of the population.
■■ Support public-private partnerships (PPPs) to strengthen backbone infrastructure.
■■ Continue the rehabilitation of physical infrastructure, as well as the modernization of transport
and supply-chain sectors.
2. E-commerce strategies
LLDCs need to put in place e-commerce strategies in economy’s preparedness to support online shopping
order to take advantage of the digitalization. Apart by looking at four indicators that are highly related
from Nepal, none of the assessed LLDCs have adopted to online shopping and for which there is wide
a dedicated e-commerce strategy. The Government country coverage: 1) the share of individuals using
of Nepal prepared its national e-commerce strategy the Internet, 2) account ownership at a financial
based on the findings of the eTrade Readiness institution or with a mobile-money-service provider,
Assessment conducted in 2017. It was launched in 3) number of secure Internet servers per million
June 2019. inhabitants and 4) the Universal Postal Union (UPU)
postal reliability score. It shows that, generally, LLDCs
Estimated values of e-commerce transactions in lag developing countries with an average index value
LLDCs are not available. The value of e-commerce of 35.6 (Table II), while still remaining somewhat
in developing countries is assessed based on the ahead of LDCs. The extent to which people shop
UNCTAD Business-to-Consumer (B2C) Index and the online in a country is highly correlated with the value
exports of digitally deliverable services as share of of the Index.3
total trade in services. UNCTAD’s Index measures an
Table II. UNCTAD B2C E-commerce Index, 2018
Share of indi- Share of indivi- Secure Internet UPU postal Index
viduals using duals with an servers (norma- reliability value
the Internet (%) account (%) (15+, lized) (2017) score (2017 (2017
(2017 or latest) 2017 or latest) or latest) data)
Developed 83 92 88 80 85.9
economies
World 54 60 56 49 54.9
Developing 41 48 42 33 41.3
economies
LLDCs 32 41 37 33 35.6
LDCs 18 31 24 23 24.4
Source: UNCTAD B2C E-commerce Index, 2018.
3
See UNCTAD’s Business-to-Consumer (B2C) E-commerce Index, 2018.
5
Another aspect is the export of digitally deliverable Figure I. Exports of digitally deliverable services as
services.4 With telecommunications and computer share of total trade in services, 2005-2018
services becoming more readily available and
affordable, more services are increasingly tradable
and possible to deliver remotely. This has given rise
to an expansion of the outsourcing and offshoring
of a range of business services (such as marketing
and management consulting) and has lowered
the barriers and entry costs for businesses in
developing countries to produce and export such
services. 5 Similarly to the B2C Index, the share of
digitally deliverable services as share of total trade
in services lags behind that of developing countries
in general, resembling more the situation in LDCs
(Figure I). From 2005 to 2018 this share actually
decreased by 10 per cent for LLDCs, compared
to an increase of over 30 per cent for developing
countries in general.
4
Digitally delivered or ICT-enabled services are defined as
services delivered remotely over ICT networks.
Source: https://unctadstat.unctad.org/.
5
See UNCTAD’s Digital Economy Report 2019.
Box I
Gender e-divide: Key eT Readies
recommendations
While e-commerce offers The assessments show that, in general,
opportunities for women women-owned businesses have been growing
to engage into trade, the eT Readies carried out over the past decade and that expanding access to
so far show that policies on gender have not yet domestic and overseas markets for these female
been designed to support their participation in business owners, through e-commerce, would
e-commerce activities. contribute to inclusive economic growth and trade.
The Assessments recommend that the following should be included as part of the e-commerce strategies:
■■ Develop gender policies with a view to enhancing ■■ Create dedicated women’s trade associations.
women’s participation in e-commerce.
■■ Develop tailored lending standards and
■■ Monitor e-commerce activities and volumes of products. Commercial banks should be encouraged
transactions and include gender disaggregated data, to adopt broader terms for evaluating the creditwor-
such as share of women entrepreneurs involved in thiness of e-commerce entrepreneurs and MSMEs,
digital economy activities. particularly women-owned businesses.
■■ Prioritize the skills development of women ■■ Build capacities of businesses and women-led
and girls. The ICT field is traditionally seen as a male associations and increase financial inclusion,
domain, and digital literacy of women in the assessed especially of women and youth. Banks should be
countries remains low. Prioritizing e-commerce skills encouraged and given incentives to provide innovative
development for women and girls would help to products for all segments of the population.
bridge the gender divide, bring more working women
into the formal sector and provide new opportunities
for women entrepreneurs.
63. Legal frameworks
According to UNCTAD’s Global Cyberlaw Tracker, the The eT Readies conducted in LLDCs have shown
level of LLDC legislative adoption is close to the world non-existent or weak legal frameworks for the
average, except for the protection of consumers regulation of online transactions. Regulations
online. Only 25 per cent of LLDCs have such legisla- and enforcements are lagging behind across a
tion, which is key to ensure consumers’ trust. majority of the LLDCs assessed and capacity-buil-
ding is needed to make implementation effective.
Table III. Percentage of countries with e-commerce legislation, 2019
Electronic Consumer Privacy and Data Cybercrime
Transactions Protection Online Protection
World 79 51 57 72
LLDCs 72 25 59 69
LDCs 55 30 36 36
Source: UNCTAD Global Cyberlaw Tracker.
The lack of up-to-date legal frameworks for policymakers/lawmakers and entrepreneurs are
e-commerce affects the ability of LLDCs to engage often not fully aware of the complex legal issues
with global business partners, attract investors, regarding e-commerce nor about latest global legal
increase the domestic uptake of e-commerce, leading developments. Regulatory and institutional coordina-
eventually to reduced impetus for e-commerce. In tion remains a challenge too.
LLDCs, like in many other developing countries,
Key recommendations
■■ Carry out legal and regulatory gap analysis for e-commerce to develop a holistic and updated approach
in line with latest developments.
■■ Adopt baseline e-commerce legislation or update relevant laws and regulations.
■■ Build capacities of lawmakers and the judiciary to enforce and increase awareness of existing
e-commerce laws.
■■ Strengthen business and civil society engagement to foster an enabling environment for e-commerce.
■■ Consider the establishment of quality labels to boost confidence and set up certification trust-mark
schemes for trusted e-commerce operators.
■■ Increase the awareness of commerce regulations – including server localization, data protection,
cross-border data transfer and taxation.
7eT Readies stories in LLDCs
Afghanistan
The eT Ready of Afghanistan pointed to the fact the strategic positioning of Afghanistan, economic
that the landlocked nature of the country could be free zones, fulfillment centers and other logistical
harnessed as a comparative advantage. Strategi- facilities could help develop its regional transit
cally positioned in Central Asia, Afghanistan can position vis-à-via e-commerce.
serve as a conduit for linking Europe, Central Key infrastructural constraints will however need
Asia, the Middle East, South Asia and East Asia, to be overcome. Less than 13.5 per cent of the
in addition to spurring regional trade. Towards population uses the Internet. Regarding its trade
this end, Afghanistan’s logistics providers have logistics environment, more reforms are needed
a wide market available if the country’s ambition to develop an efficient trade facilitation regime
as a transit trade hub is attained. This could even though Afghanistan undertook “important
have spillover impacts on capacity development steps” in that direction by becoming a member
from an e-commerce perspective. Transit trade of the WTO and ratifying the Trade Facilitation
potential extends to e-commerce as well. Given Agreement.
Bhutan
Being a latecomer to the ICT space, Bhutan ■■ Confusion within and between relevant
is characterized by a unique environment for government agencies and public institutions over
development of an ICT-based society by way priorities and implementation processes.
of a stable and vibrant government, a small ■■ Technical factors, including accessibility and
population, widespread knowledge of English, affordability of broadband Internet infrastruc-
good telecommunications network in many of the ture, the digital divide between cities and the
urban areas and the Government’s commitment to countryside, limited access to financial services,
adopting ICT as a development tool. E-commerce and logistical challenges related to the delivery of
could represent a solution to overcoming logisti- goods.
cal and geographical barriers and could tap into ■■ Trust factors, i.e., moving from a cash to a
other markets. Bhutan faces a series of challen- cashless society, building consumer trust in online
ges, including a relatively small market size, low platforms and mobile payment solutions.
broadband Internet penetration (especially in ■■ Unclear legal and regulatory framework.
rural areas), payment issues and poor logistics
networks, which remain stumbling blocks to
e-commerce development. Some of the other key
barriers to developing e-commerce include:
Burkina Faso
The eT Ready of Burkina Faso highlights the number of professional operators have developed
need for far-reaching reforms of its infrastruc- platforms covering sectors such as agribusiness,
ture to benefit from e-commerce. The Assessment clothing, IT and household appliances. Under the
found that e-commerce expansion is taking place aegis of Burkina Faso’s Plan National de Développe-
mainly in the informal economy, through private ment Économique et Social, the “Burkina Start-Ups”
classifieds sites and social networks, while a small programme financially supports start-ups.
8But their growth and structuring as companies A new regional dynamic driven by the Ministers
often remain uncertain. Numerous major obstacles of Commerce of the West African Economic
holdback growth of the ICT sector, particularly the and Monetary Union (WAEMU/UEOMA) in the
low level of accessibility and penetration of the Ministerial Declaration of 29 September 2017 to
Internet across the country, and often unsatis- define a regional work plan for the development
factory quality of service. Low levels of infrastruc- of electronic commercewill enable support for
ture development, prohibitively expensive routes WAEMU countries’ efforts in this area. A first step
to/from the international, logistics that are not in preparation of this plan was initiated by the
sufficiently integrated by the active operators in WAEMU Commission, in cooperation with UNCTAD,
the national and regional segments, a last mile with the organization of a regional workshop on
delivery that is often impossible due to the faulty electronic commerce, organized in Ouagadou-
addressing system, are among the obstacles gou from 9 to 11 October 2018. The impetus of
that the operators of the e-commerce in Burkina regional institutions such as UEMOA (WAEMU – or
Faso must face. The National Trade Facilitation use format above) and the Economic Community
Committee recently established could help to of West African States (ECOWAS) encourage
design solutions for a reduction of the tax burden member states to harmonize economic integra-
on international shipments and bring a greater tion policies, including the applicable regulatory
transparency to the administration of customs framework. UNCTAD has also started discussion
clearance charges and fees. with the ECOWAS Commission to assist in the
elaboration of a regional e-commerce strategy.
Lesotho
The eTrade Readiness Assessment of Lesotho from support by international donors (including
shows how the small, mountainous nation could the World Bank and UNCTAD) to shorten the
unlock its digital market to diversify its economy. customs clearance time. Recent reforms also
But there are a series of conditions for its success. include the creation of a One-Stop Business
The two main priorities are: a lack of affordable Facilitation Centre and the rationalization of
access to connectivity and inadequate legal and customs procedures. The country signed the WTO
regulatory frameworks. Mobile service costs, in Trade Facilitation Agreement in January 2016.
some instances, represent almost six per cent Lesotho performs better overall than its peers
of the individual’s monthly income. Currently on different trade facilitation-related indicators,
Lesotho’s e-commerce legislation and regulation a reflection of the country’s efforts to improve
are weak, and the country lacks most of the key its trading environment. Challenges persist, such
laws and regulations necessary to ensure online as the lack of home addressing, which creates
trade. a difficulty for delivery service providers, the
appearance of roadblocks and poor transfer of
Despite being landlocked, Lesotho’s inherent information between South Africa and Lesotho,
connectivity challenges are mitigated by having as well as the weak performance of the Lesotho
to agree on border cooperation with only one Postal Service.
country, South Africa. The country has benefited
9Lao PDR
Lao PDR finds itself at the crossroads of digital financial services. The cautious approach
e-commerce adoption. It has invested massively that the Government has taken over the years
in ICT infrastructure to guarantee reliable access has resulted in Lao PDR losing out on the benefits
to mobile telephony and updated its legal and from the growth of this form of business, especial-
regulatory framework to adhere to its regional ly compared with its immediate neighbours, as
and international commitments. The Government well as on the opportunity to further diversify its
now needs to adopt ambitious policies regarding economy and generate revenue from e-commerce.
the acceleration of the use of ICT and e-commerce,
as well as the creation of a supportive ecosystem The ability to leverage ICTs to boost innovation
for further social and economic development. and online participation depends heavily on the
availability of a reliable and cost-effective ICT
Interest in the digital economy is triggered by infrastructure. Lao PDR MSMEs are unlikely to
renewed focus on trade, and especially services. gain a competitive advantage when businesses
Technology will be an important driver. It is also and investors do not have ready access to global
essentially a mobile-only country, meaning that sources of knowledge and other resources and
96 per cent of the population who access Internet are relatively isolated from global markets.
do so on their cell phones. However, the country
is one of the most expensive in the world when The Government needs to play a vital role to
it comes to using information and communica- incentivize entrepreneurship and boost a start-up
tions technology: it was ranked by International culture in the country. Some measures have been
Telecommunication Union in 2018 as 144 out of taken lately to collaborate with foreign institutions
166 countries for the cost of using IT and telecoms to encourage start-ups initiatives in the country.
services. Mobile money has not yet been taken However, unless the government continues to pay
off, because of regulatory concerns. Additio- attention to providing incentives and funding to
nal regulations are much-needed for a national start-up activities, digital progress might remain a
payment system, to accelerate the adoption of slow process in the country.
Malawi
Malawi enjoys a stable political environment and our survey point out “Lack of ICT infrastructure
an economy driven by agricultural production (Internet access, power supply)” is an important
and trade, primarily tobacco, tea and sugarcane. reason for not investing in e-commerce solutions.
Through its Vision 2020 and the Malawi Growth Recent improvements in the ICT infrastructure
and Development Strategy (MGDS), the country include the extension of fibre-optic backbone and
seeks to address macroeconomic imbalances, cross-border interconnections, the launch of 4G,
foster economic diversification, and improve and the establishment of the Universal Service
infrastructural endowment and social develop- Fund. In terms of trade logistics and trade facilita-
ment indicators. The MGDS however does not tion, the transport infrastructure suffers from
capture the growth potential that e-commerce low levels of investments, poor private sector
and digital economy could bring to its developing involvement, and limited competition in some
economy. At present, less than 14 per cent of sub-sectors. Investments are hindered due to
Malawians use the Internet. One major reason is the lack of an addressing system and the small
the high cost of Internet access, which although size of the market. Progress has been made with
it has been decreasing, remains high by African regards to paperless trade and e-payments as the
standards and inaccessible for most Malawians. country has prioritized trade facilitation reforms
Quality of Service and last mile connectivity and implementation of the WTO Trade Facilitation
also remain a critical concern and more than Agreement.
70 per cent of the private sector responses to
10Mali
The e-commerce ecosystem in Mali is still in public administration to be better equipped and
its infancy. Despite the efforts of the public and able to integrate electronic commerce in their
private sectors to give it a real impetus, the support of the private sector. On the other hand,
commitments have not been constant or sustained the private sector will have much to gain from
enough over time. This is partly due to the security a better organization around a regrouping of
challenges and political instability that slow down the sector actors, and a pooling of the services
the creation of the necessary conditions to better essential to the growth of the companies.
manage initiatives and develop e-commerce in
different sectors of the economy (agriculture, Mali has assets on which it must capitalize: a
crafts, education, financial services). Mali’s digital public administration that has understood the
isolation is aggravated by geographical isolation, importance of a process of services digitiza-
which increases the difficulties faced by businesses tion, important projects for the development of
in terms of transport infrastructure and logistics. a broadband Internet infrastructure, as well as
dynamic start-ups and successful experience in
The eT Ready points to the need to accelerate the field of e-health. These assets should enable
the implementation of the projects and reforms the Government to define coherently, inclusively
included in the Mali Digital 2020 benchmark, to and transparently the actions to be undertaken
build a steering and coordination framework and in order to boost the e-commerce sector and the
to develop an e-commerce sector strategy with digital economy as a whole.
clear implementation commitments. On the one
hand, there is a need for capacity-building within
Nepal
According the eT Ready of Nepal, the rapid privacy, aas well as restrictions on foreign direct
spread of Internet access in the landlocked central investment for retail (since e-commerce is not
Himalayan country, especially in the Kathmandu recognized as its own separate industry). Legal
Valley, is creating new growth opportunities for reforms are underway and the country adopted
businesses such as retailers, mobile operators and in June 2019 an e-commerce strategy. To help the
payment service providers. New eTrade niches government speed up the reform process and
are opening up as domestic and foreign players for e-commerce to really take off in Nepal the
vie to satisfy the demands of an increasingly assessment report provides several recommen-
e-commerce-ready population. This is creating dations in line with the three main bottlenecks
healthy competition, especially among financial identified: online payment, transportation, and
services. Over the past seven years, the portion distribution channels. Some recommendations
of Nepali consumers online has grown from are: the adoption of a single shared vision for
eight per cent to almost 60 per cent thanks to national e-commerce development in Nepal,
improved information communications technolo- strengthening the logistics infrastructure by
gy infrastructure and services. Most shoppers in fostering the development of PPPs between
the country now access the Internet through 2G private sector couriers and Nepal Postal Services,
or 3G mobile data services. E-commerce uptake as well as supporting the MSMEs’ entry into global
and online trust is however hampered by a e-commerce by ensuring the availability of a PSP,
slightly outdated legal and regulatory framework, among others.
especially regarding consumer protection and
11Uganda
As a landlocked country, Uganda faces inherent and logistics couriers also provide important
geographical constraints and depends on the e-commerce delivery services. Following from
efficiency of transport networks in neighbouring the eTrade Readiness Assessment, a National
countries for its access to the major ports in East Committee led by the Ministry of Trade, Industry
Africa. To lessen the impact of these constraints, and Cooperatives, including private sector actors,
increased focus has been placed on improving has been put in place to facilitate communica-
the postal network services within the country, tion across ministries and the private sector to
reducing clearance time for expedited shipments coordinate all national e-commerce activities. The
and improving last-mile delivery for e-commerce focal point has been using a free messaging app to
parcels. In June 2018, Uganda ratified the WTO connect with the different stakeholders identified
Trade Facilitation Agreement, which is aimed at through the Assessment to ensure proper institu-
simplifying, standardizing and harmonizing trade tional coordination, adequate mobilization,
procedures and documentation related to import, planning and budgeting.
export and transit. Private transport companies
Zambia
Zambia is centrally located and surrounded by establishment of an inter-ministerial coordina-
eight countries, which gives the country high tion body and a public-private coordination body
potential and opportunity to be the ICT hub in on digital e-commerce that could support the
the region. By requesting the eTrade Readiness engagement in a national e-commerce strategy. In
Assessment Zambia sent a strong signal: the addition, identifying ways to strengthen the voice
country is interested in e-commerce and is of start-ups and other e-commerce vendors, often
ready to increase efforts to strengthen the operating outside the traditional business associa-
enabling environment for e-commerce and the tions and bodies, would further help support
digital economy. To address this objective, the the contribution of e-commerce to the country’s
Government is investing significant time and development. Embarking upon the develop-
resources in ICT infrastructure, updating legisla- ment of a national e-commerce strategy would
tion and regulations, and building public sector help to create a national vision, increase trust
capacity to provide e-services. In parallel, Zambia in e-commerce, improve the enabling business
has a growing start-up and broader e-commerce environment, as well as provide the impetus for
scene, creating fertile ground for unlocking the public-private dialogue and coordination.
potential of e-commerce. For these efforts to
succeed, some conditions are needed like the
To discover all the available eT Ready assessments: https://etradeforall.org/program/e-commerce-as-
sessments/
12Policy impacts
Since 2017, UNCTAD has conducted 22 eT Readies that have affected national policies in various ways:
Critical inputs were generated in seven Identification of focal points for
key policy areas to enable countries e-commerce and the digital economy.
to better understand the interlinked
issues related to the digital economy:
Strong engagement at the ministerial
E-commerce readiness assessment level.
and strategy formulation
ICT infrastructure and services
Constructive multi-stakeholder interac-
Payment solutions tions.
Trade logistics and trade facilitation
Legal and regulatory frameworks Increased synergies with development
E-commerce skills development partners.
Access to financing
The Assessments have prompted
governments to request additional
Growing awareness about the role technical assistance.
of e-commerce for development at
domestic and regional levels. Countries are better equipped to
formulate their needs to potential
donors/partners.
Enhanced knowledge base that has
also benefited international organiza-
tions, development partners, NGOs Raised e-commerce profile among
and civil society. development partners.
4. Governments and development partners need to
work together to achieve tangible results
The role of Governments is multi-fold: from improving nature of e-commerce as exemplified by the seven
coordination of digital economy and e-commerce, different policy areas considered by UNCTAD in the
engaging the private sector in dialogue, formula- eTrade Readiness Assessment Programme. The
ting or updating e-commerce enabling laws and main message of the pilots’ stories, as in the case of
regulations, ensuring that mobile connectivity (and Myanmar, reveals what eTrade for all partners can
mobile broadband) is accessible and affordable for achieve when working together—while preserving
the majority of the population, to making sure that their core mandates—to carry out the strategies
ICT skills and knowledge is infused in education, and programmes needed to generate lasting effects
vocational training and professional training curricu- on digital development. It also shows how essential
la. Similarly, development partners have a particular- Government commitment is to develop the digital
ly critical role to play, considering the cross-cutting economy (Box II).
13UNCTAD’s eT Ready Monitoring Tool and The results of the ongoing monitoring exercises
Smart Partnerships approach in countries assessed from 2017 to 2018 will be
showcased at the next eCommerce Week 2020, 27
Following requests from developing countries and
April to 1 May, in Geneva, Switzerland.
donors, UNCTAD in cooperation with pilot countries
has prepared a monitoring tool that helps beneficia-
Smart Partnerships: Accountability of
ry countries and development partners provide
development partners
evidence on progress in implementing effectively
recommendations emerging from the eT Readies Based on the experience of conducting eT Readies
according to countries’ priorities, as well as accounta- since 2017, UNCTAD has identified partners with
bility among development partners. expertise and mandate in the seven policy areas under
review and has been coordinating with these agencies
Tracking progress: Beneficiary country at different stages of preparation of the Assessments.
ownership Table IV presents a non-exhaustive list of contribu-
ting partners who could assist with implementation
The Monitoring Tool helps identified focal points
of specific recommendations. UNCTAD has also been
to track progress in implementing the priority
able to associate eT4a partners with the donors’ round
recommendations. The monitoring matrices will be
tables organized when launching some Assessments
updated every six months. This monitoring is led
at the country level with some concrete results, such
by the beneficiary country and will be shared with
as in the case of Myanmar (Box II). This approach
development partners, including eT4a Partners.
could be replicated in pilot land-locked countries.
Box II
From recommendations to actions:
The case of Myanmar
The Government of Myanmar (GoM) recently launched regulations, resource mobilization with development
an ambitious project funded by the Enhanced partners and job creation in the digital economy and
Integrated Framework (EIF) to leverage e-commerce e-commerce sectors. The e-commerce strategy will
as a source of growth for its services sector and be developed under the aegis of the Digital Economy
for transitioning to a more digital economy. The Roadmap developed by the Digital Economy Develop-
project aims inter alia to improve the performance ment Committee, which granted a specific mandate
of Myanmar’s export-orientated services sectors to the Ministry of Commerce as the lead agency for
in support of the diversification of the country’s e-commerce development.
export basket and to generate much-needed quality
employment. UNCTAD has received funds to support the GoM in
developing a comprehensive e-commerce strategy
Myanmar is one of the pilot countries within the that will transform the vision and strategic goals at
UNCTAD eTrade Readiness Assessment Programme the core of Myanmar’s Sustainable Development
to quickly start the implementation of the recommen- Plan 2018-2030 into a concrete roadmap proposing
dations contained in the eT Ready conducted in specific interventions for e-commerce development.
2018. The e-commerce strategy was one of the The e-commerce strategy will aim to give special
key recommendations along with recommenda- emphasis on the development of local e-commerce
tions for enhancing the public-private dialogue solutions and on economic opportunities for
on e-commerce, the development of key enabling under-served groups such as youth and women.
14Sound ownership from the Government and smart ■■ UNESCAP, through the EIF-funded, China-fun-
partnerships among eT4a partners and donors are ded and RoK-funded actions to assess and improve
essential to advancing faster the digital agenda. Since Myanmar’s technical and legal readiness for their
the launch of the eT Ready of Myanmar, the GoM participation in cross-border paperless trade.
has been able to mobilize additional development
partners such as the: ■■ UNCTAD/ERIA, through DFAT funding that aims
to build the capacity of e-commerce negotiators
■■ ITC, through the EU-funded ARISE Plus project, to 2020/2021.
support MSMEs’ embrace of digital technology for
trade, e.g., through facilitation of partnership between Other initiatives include DFAT’s E-commerce Aid for
leading e-commerce MSMEs and international selling Trade Fund, which aims to build productive capacity,
platforms, the formalization of MSMEs through support effective trade policy and regulation, and
registration of businesses and raising awareness of develop economic infrastructure in the e-commerce
opportunities created by e-commerce; and making sector.
MSMEs bankable and eligible for incubators, business
accelerators and venture capitalists.
In the enhanced version of the eT Readies ―for non help provide a deeper analysis of some eT4a policy
LDCs― partners are invited to join UNCTAD during areas and lead to the preparation of an actionable
the in-country missions depending on the priorities project document to be submitted to the beneficiary
identified by the requesting government. This will countries and donors.
Table IV. UNCTAD eT Readies Smart Partnerships
Policy Areas Partners
E-commerce strategy EIF, ITC, ITU, UNCTAD, UPU, WBG
ICT infrastructure EIF, ITC, ITU, UNESCAP, WBG
Payment solutions ITC, UNCDF, UNCITRAL, UNESCAP, UPU, WBG
Legal frameworks ITU, UNCITRAL, UNCTAD, WIPO, WBG
Trade logistics and facilitation ITC, UNESCAP, UNCTAD, UNECE, UPU, WBG, WCO, WTO
Skills development ILO, ITC, ITU, ISOC, UNESCO, UNICEF, UN Women, WBG, WTO
Financing SMEs ITC, UNCDF, WBG
Stocktaking workshop on the conduct
and implementation of eT Readies held
in Geneva in April 2019.
15To discover all the available eT Ready assessments: https://etradeforall.org/program/e-commerce-as-
sessments/
UNCTAD Bhutan
The benefits of the report recommendations will not We thank UNCTAD for the rapid eTrade assessment.
be felt unless they are effectively implemented. This It was a very good guide for Bhutan.
will require integrating specific elements of the recommen-
- H.E. Mr Lekey Dorji, Minister for Economic Affairs, Bhutan
dations into national development plans, government
and private sector initiatives, ICT policies and strategies,
regulatory frameworks and development projects. Burkina Faso
- Dr. Mukhisa Kituyi, Secretary-General of UNCTAD Burkina Faso must capitalize on the strengths
identified in the study: increasing the digitaliza-
tion of public services, a competitive telecommunication
Enhanced Integrated Framework (EIF) sector, the development of broadband Internet infrastruc-
E-commerce offers huge opportunities for more than ture, a science park and dynamic start-ups. The proposed
100,000 SMEs in Nepal, especially those owned by roadmap will enable us to accelerate the path towards the
women and young entrepreneurs, to reach foreign markets country’s digitization.
and get their products known to global consumers. Putting
- H.E. Harouna Kabore, Minister of Commerce, Industry and
in place enabling conditions for e-commerce, especially
Handicrafts, Burkina Faso
e-payment solutions, more reliable Internet connections
and logistics services, should be initiated as soon as
possible to unleash the full potential of the fast-growing
Uganda
digital economy.
E-commerce is an impetus for entrepreneurship,
- Mr. Ratnakar Adhikari, Executive Director, EIF Executive
innovation and business development that can
Secretariat benefit all the people in Uganda.
- H.E. Frederick Gume Ngobi, State Minister for Coopera-
tives, Uganda
Germany
Many developing countries want to profit from
the possibility of digitalization and engage in Zambia
e-commerce, but often do not know where to start. eTrade The assessment provides a roadmap for what needs
Readiness Assessments are the perfect starting point. They to be done in different policy areas, but we need to
help identify potentials and challenges in e-commerce, and coordinate our activities. A national e-commerce strategy
enable countries to design appropriate strategies to further for Zambia would help align different stakeholders towards
advance in digital trade. We want to encourage developing a common vision.
countries to take advantage of these tools. - Ms. Kayula Siame, Permanent Secretary of Zambia’s
- Ms. Daniela Zehentner-Capell, Head of Division, Trade Commerce Ministry
Related Development Cooperation, Federal Ministry for
Economic Cooperation and Development, Germany
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