UNCTAD eWeek - Fast-tracking a digital economy future in developing countries: Opening remarks

Your Excellency, Mr. Eliud O. Owalo, Cabinet Secretary, Ministry of Information, Communication and the Digital Economy, Kenya,

Your Excellency, Mr. Mohamed Abdallahi Louly, Minister of Digital Transition, Innovation and Modernization of Administration, Mauritania,

Your Excellency, Mr. Nizar Ben Neji, Minister of Communication and Technologies, Tunisia, 

Your Excellency, Ms. Hon. Sithembiso G. G. Nyoni, Minister, Ministry of Industry and Commerce, Zimbabwe,

Your Excellency, Ms. Nana Ama Dokua, Deputy Minister for Trade and Industry, Ghana,

Your Excellency, Mr. Prasith Suon, Permanent Representative of the Kingdom of Cambodia to the WTO and other International Organisations in Geneva,]

Excellencies,

Distinguished Speakers,

Ladies and Gentlemen,

Welcome to our first high-level session of the eWeek which focuses on a need that is undeniable: Fast-tracking a digital economy future in developing countries.

The digital economy is the present and the future. But as we all know, not everyone has been able to participate and benefit.

The gap between developed and developing economies becomes glaringly apparent when examining online consumer habits:

• The average share of people shopping online in developed economies is about ten times higher than in least developed countries (62% versus 6%).
• Only one third of people in LDCs use the internet, partly due to high connectivity costs.
• And although 92 per cent of the people in LDCs are now covered by mobile networks, less than half have access to 4G networks that can more efficiently support digital trade.

It is therefore not surprising that the share of LDCs in global exports of digitally deliverable services has declined since 2010, along with their share of total services trade.

The digital economy offers unparalleled opportunities but also formidable challenges, particularly for developing nations.

For instance, developing countries encounter several hurdles for digital transformation. According to our third Implementation Review of eTrade Readiness Assessments, the main hurdles include limited policymaker readiness, lack of relevant data and statistics, challenges related to policy coordination and governance, or insufficient international support. These barriers still hinder the realization of the e-commerce or digital economy potential in many developing countries.

Our mission is to support developing countries, and especially least developed countries, to have a global digital economy that works for all. We have been supporting developing countries in assessing their digital capabilities and using that knowledge to design and implement strategies to expand their digital trade and e-commerce. We also help countries in finding partners that can support the implementation of the strategies. The distinct feature of our support is its collaborative nature.

We are proud that in the last five years, more than 30 developing countries benefitted from UNCTAD eTrade Readiness support and related aid from partners.

This support contributed to some great achievements. Let me share with you some achievements of countries and regions who are represented here with the presence of their honorable ministers.

ECOWAS adopted its first e-commerce strategy for the region signaling its ambitions and priorities for developing an inclusive and sustainable e-commerce ecosystem. A system that is built around strong institutions, trustworthy and reliable data, and aims to further promote regional integration and empower the most vulnerable in the region.

The Government of Kenya will launch its first national e-commerce strategy next week, developed with exemplary inter-ministerial cooperation.

The Government of Tunisia is implementing an Action Plan which contributes to digitalizing the Central Bank’s information system and procedures related to foreign exchange operations. With support from colleagues of ITC, excellent training and capacity building have been provided for strengthening e-commerce skills and technical capacities of Tunisian public and private sector operators.

In Ghana, the eTrade Readiness Assessment highlighted the strong potential for e-commerce, following large investments in ICT infrastructure which boosted internet penetration and financial inclusion. As a next step, the Government of Ghana would like to develop a national e-commerce strategy that leverages on these prospects.

In Mauritania, the eTrade Readiness Assessment validated last month offers a tool for operationalizing the country’s ambitious National Digital Transformation Agenda 2022-2025.

Cambodia has used insights from its eTrade Readiness assessment to develop a long-term vision to build a vibrant digital economy and society. It has implemented several reforms to enable e-commerce.

The Government of Zimbabwe is about to embark on this journey and we look forward to supporting it in achieving its objectives.

Ladies and gentlemen,

Creating thriving digital economies in developing countries is far from finished.

More countries are seeking assistance from UNCTAD and our partners.

Capacity-building is key for understanding and addressing the complex facets of e-commerce and digital trade.

It is also much needed for those facets under discussion in global and regional fora which set the path for future opportunities.

The development of e-commerce is a cross-cutting challenge spanning the mandates of multiple ministries and agencies. With the increasing prominence of e-commerce in policymaking, a whole-of-government approach is needed.

In many developing countries, capacity for strategic planning, stakeholder engagement, monitoring and evaluation needs to be improved.

The eTrade Readiness assessments have proven to be an essential guide for policymaking to promote digital transformation, foster collaboration and bridge various digital gaps. Multi-stakeholder consultations organized in the process of the assessment provide opportunities to initiate or strengthen public-private dialogue.

But each assessment is just the beginning of the journey. The real value emerges when policy recommendations are actually implemented. It is against this background that we have taken various initiatives to boost the country's implementation capabilities.

For instance, we developed the eTrade Reform Tracker - a new online tool – to enable countries to better coordinate and monitor the implementation process.

In this journey of fast-tracking a digital economy future in developing countries, the engagement of development partners remains crucial. The problem is that the pace of resource allocation is not keeping up with actual needs.

Also better coordination of interventions in the e-commerce field is necessary. The eTrade for all initiative plays here a key role, but further efforts are needed to empower governments to lead the implementation of e-commerce policy actions. We believe that in this regard closer collaboration with UN Resident Coordinator Offices can be beneficial to strengthen the capabilities of governments.

Dear friends,

The digital revolution is in full mode. To ensure that it becomes more inclusive and can deliver vast development outcomes, it requires actions from us all.

Thank you.