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e-commerce indeveloping countries

o a ha

a a -z


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W ta oaza

The World Trade Organization is the international body dealing with the global rules o trade

between nations. Its main unction is to ensure that trade ows as smoothly, predictably and reely

as possible, with a level playing feld or all its members. The WTO aims to place developing

countries needs and interests at the heart o its work programme.

Wha -?

For the purposes o the trade ocus o this brochure, e-commerce is the sale or purchase o

goods or services conducted over computer networks by methods specifcally designed or

the purpose o receiving or placing o orders. Even though goods or services are ordered

electronically, the payment and the ultimate delivery o the goods or services do not have to be

conducted online.

An e-commerce transaction can be between enterprises, households, individuals, governments,

and other public or private organizations. Included in these electronic transactions are orders

made over the web, extranet or electronic data interchange. The type o transaction made is

defned by the method o placing the order. Normally excluded are orders made by telephonecalls, ax or manually typed e-mails.

Wkh e-c, d a sa

a m-z e

A workshop at the WTO on 8 and 9 April 2013 highlights the relationship between e-commerce

and development and examines how small and medium-sized enterprises (SMEs) in developing

countries have been using e-commerce to promote, market, service and sell their products

nationally and abroad. The workshop ocuses on both the opportunities and the challenges

acing developing countries and assesses how such issues concerning adequate levels o

telecoms inrastructure, regulation and investment either help or hinder SMEs rom fnding newopportunities through e-commerce.

This document has been prepared under the responsibility of the WTO Secretariat and is without

prejudice to the positions of WTO members and to their rights and obligations under the WTO.


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1

Many small and medium-sized enterprises

(SMEs) in developing countries have the

possibility to benet enormously rom mobile

telephony, the internet and other orms o

inormation and communication technology

(ICT) in their day-to-day business activities.

This has already resulted in enhanced

productivity in a number o areas.

However, SMEs in these countries are

not always maximizing the use o ICT.

Governments and their partners, including theprivate sector, need to take greater advantage

o the opportunities emerging in the new

ICT landscape. Also, governments need to

ensure that users benet not only rom being

connected to the internet but also rom any

technological evolutions that increase the

speed o data fows and that can help reduce

costs to consumers.

e- a sme

In both developed and developing countries,SMEs make up a majority o business and employthe majority o workers in both manuacturingand services sectors. SMEs cater mostly to theirdomestic market and their contribution to GDP,although normally very small, can vary greatlydepending on the value o the goods or servicesthey produce. While less than 6 per cent o theormal work orce is employed in manuacturingin SMEs in Azerbaijan, Belarus and Ukraine, thisshare is more than 50 per cent in other developingcountries such as Ghana, Turkey and Ecuador.Research has indicated that countries with

large SME sectors also tend to beneft rom thesignifcant contribution which SMEs make to GDP.

A study by the United Nations Conerence onTrade and Development (UNCTAD) has shownthat SMEs, while generally lagging in ICT, havethe most to gain rom increases in productivitythanks to e-commerce. SMEs, however, actuallyrun the risk o missing opportunities in bothproductivity and proftability by not engaging ine-business. SMEs also have a large role to play inthe economies o developing countries because

it is these same countries that have the greatestpotential to beneft rom e-commerce. The extento ICT use by SMEs is dependent on both sector

and size o the business. Typically, those SMEswhich are export or import-oriented as wellthose involved in the tourist sector have strongerincentives to invest in implementing ICT in theirrespective businesses.

E-commerce has been hailed by many as anopportunity or developing countries to gaina stronger oothold in the multilateral tradingsystem. E-commerce has the ability to play aninstrumental role in helping developing economies

beneft more rom trade. Unlike the requirementsnecessary to run a business rom a physicalbuilding, e-commerce does not require storagespace, insurance, or inrastructure investment onthe part o the retailer. The only pre-requisite is awell designed web storeront to reach customers.Additionally, e-commerce allows or higher proftmargins as the cost o running a business ismarkedly less.

Another advantage provided by e-commerceis that it allows or better and quicker customer

service. In some cases, customers could havedirect access to their own personal accountsonline and can avoid calling companies on thephone. This can save both time and money.Adding customer online services such asovernight package delivery services can alsohave commercial benefts. These can becomplemented by package tracking serviceswhich allow customers to check the whereaboutso their packages online. This helps provide goodlevels o customer satisaction with very littleeort rom the side o the business.

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2E-commerce in developing countries

Opportunities and challenges for small and medium-sized enterprises

The frst decade o the new millennium witnesseda proound change and dramatic increase in theway business and trade takes place electronically.Each day, more users in least-developed anddeveloping countries are accessing the internetthrough terminals. A growing percentage ousers are now also accessing the web throughmobile technology. It is predicted that the internetand especially the use o mobile applicationswill expand exponentially in the decades ahead.There is enormous potential or using ICT to

contribute to the social and economic progress odeveloping countries worldwide. A key role in thisregard is played by SMEs.

UNCTADs recent Inormation EconomyReport 2010 shows how ICT use by microenterprises and SMEs has improved not onlybusiness perormance but has helped improvelivelihoods in some o the worlds poorestregions and communities. Many entrepreneurs indeveloping countries now have a real possibilityto beneft rom ICT in their business activities.

In many cases, this has resulted in gains inenhanced productivity.

By improving communication channels, both

domestically and internationally, the applicationo relevant ICT can greatly enhance thecompetitiveness o business. Governmenteorts to urther improve, upgrade and expandICT use by the private sector should, thereore,be reinorced. UNCTADs study fnds thatgovernments and their various partners, includingthe private sector, are ar rom taking ulladvantage o the opportunities that are emergingin the new ICT landscape. This is evident in partrom the relatively limited attention that has beengiven to ICT in strategies aimed at promotingprivate sector development.

O all the internet users in 2011 (see Chart 1),1.3 billion were rom the Asia-Pacifc region, theMiddle East, Arica or Latin America, indicatinga shit in the regions with the most peopleonline. However, in spite o this growing trend ininternet use, developed countries still continue tosurpass developing countries in terms o numbero connections.

Chart 2 highlights the number o individuals usingthe internet per 100 inhabitants. While the Arica

region has a penetration rate o 12.4, Europehas the highest penetration rate, with 68.4 out oevery 100 Europeans having access.

gwh h

Chart 1

nb h , 2001-11

Chart 2

ia h

100 haba, 2011

Source: International Telecommunication Union (ITU)

* Commonwealth of Independent States

Source: ITU World Telecommunication / ICT Indicatorsdatabase

2,500

2,000

1,500

1,000

500

0

Million

2001

2002

2003

2004

2005

2006

2007

70

60

50

40

30

20

10

0

Eurpe Th

e

America

s CIS*

Wrld

Arab

State

s

Asia

&

Pacif

cAric

a

68.4

29.1

40.7

12.4

53.4

25.5

32.5

2008

2009

2010

2011


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3

There is no question that e-commerce has grownrapidly since the frst users started to browse theworldwide web in search o goods and services.Today, sales realized over the internet representa signifcant proportion o overall commercialsales. In 1991, the internet had less than 3 millionusers around the world and its application toe-commerce was non-existent. Almost a decadelater, by 1999, an estimated 300 million usersaccessed the internet and approximately one-quarter o them made purchases online rom

electronic commerce sites, worth approximatelyUS$ 110 billion. This year, global business-to-consumer e-commerce sales are set to pass theUS$ 1.25 trillion mark.

B2B, B2c B2g?

There are numerous types o commercialtransactions that occur online, rom buying goodssuch as books or clothes to purchasing servicessuch as airline tickets or making hotel or carrental reservations. Since the main ocus o this

brochure is on how SMEs use the internet, thediscussion here concerns only a ew serviceswhich relate closely to SME economic activity.These include electronic communications in thearea o business to business (B2B), business toconsumers (B2C), business to government (B2G)and mobile e-commerce.

Business to business (B2B)

B2B is e-commerce between businesses suchas between a manuacturer and a wholesaler, orbetween a wholesaler and a retailer. This is theexchange o products, services, or inormationbetween businesses rather than betweenbusinesses and consumers.

Global B2B transactions comprise 90 per cent oall e-commerce. According to research conductedby the US-based International Data Corporation(IDC), it is estimated that global B2B e-commerce,especially among wholesalers and distributors,amounted to US$ 12.4 trillion at the end o 2012.I the expansion in e-commerce continues at thisrapid pace in developed markets as is expected,B2B and B2C e-commerce transactions willaccount or about 5 per cent o all inter-companytransactions and retail sales by 2017.

Business to consumers (B2C)B2C e-commerce entails businesses selling tothe general public, typically through cataloguesthat make use o shopping cart sotware.Although B2C e-commerce receives a lot oattention, B2B transactions ar exceed B2Ctransactions.

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According to the IDC, global B2C transactionswere estimated to reach US$ 1.2 trillion atthe end o 2012, ten times less than B2Btransactions. Although B2C e-commerceaccounts or only a small share o e-commerceas a whole, it continues to grow. B2C

e-commerce is highest in Norway, Denmark,Sweden, the United Kingdom and theUnited States and covers mainly computer-related products, clothing and digitized products.

Despite the low value o its transactions, B2Ce-commerce has received the most attention,partly because issues such as consumer trustand data protection have received considerableconcern rom policy makers.

Business to government (B2G)

Business to government (B2G) commerce isgenerally defned as e-commerce betweencompanies and the public sector. It reers tothe use o the internet or public procurement,licensing procedures, and other government-related operations.

In B2G e-commerce, the public sectorgenerally assumes the pilot role in establishinge-commerce in an eort to make its procurementsystem more efcient. The size o the B2Ge-commerce market as a component o total

e-commerce is still rather insignifcant asgovernment e-procurement systems still remaincomparatively undeveloped.


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5

The most popular ICT in developing countriesand one which is progressing very rapidly inArica and Asia, in particular India, is the mobilephone. Mobile phones are increasingly playinga larger role in the expansion o e-commerce indeveloping countries, especially among userswithout terminal connections.

Chart 3 shows that in the past ten years, mobile-cellular subscriptions in developing countrieshave increased nearly tenold. Not only have they

helped to improve how businesses are run, theyare also helping to close the poverty gap. Mobilephones are making it possible or rural armersto engage in mobile money services, allowingthem to open saving accounts, earn interest ontheir deposits and access a variety o credit andinsurance products.

In many developing countries, mobile phones arestill mostly used or voice communication andtexting. Recently, however, they are increasinglybeing used or data applications such as

m-commerce and m-banking. In a number oArican countries, notably Kenya, South Arica,Tanzania and Zambia, mobile telephones arebeing used to do personal banking services.

Entrepreneurs are using calling and textingservices to acquire locally relevant inormationand services. In the near uture, internet-enabledphones may help to deliver the same services butmore efciently. Micro enterprises and SMEs, manyo which are in the inormal sector in developingcountries, appear to be the most positively aectedby the adoption o mobile telephony.

In the agriculture and fsheries sectors in Asiaand Arica, or example, mobile phones are nowrequently used to conduct sales and purchases,to establish delivery times and destinations andto negotiate prices. While these are classictransactions normally carried out over personalcomputers, they are being done on location usingmobile technology. For fshermen, mobile phonesare regularly used to check weather reports andto receive early warning announcements o severeweather conditions on land or at sea.

Wha a h

h ba b ak?

Developing countries particularly major emergingeconomies will continue to drive growth o theglobal mobile phone market. This is due to theirlarge population, low penetration rates and risingdisposable incomes although the true growthpotential depends also on government policies tohelp liberalize the market and enhance competitionamong network providers.

During 2011-20, the number o mobilesubscriptions in Arica and the Middle East isorecast to grow at an average rate o 5.6 percent per year, compared with the global averageo 3.7 per cent. However, the expected growthin Arica and the Middle East is rom a relativelylow base: in 2010, the mobile penetration rate inArica stood at 56.5 per cent o the population.

A h ww wb hh

b hy

Chart 3

mb-a b 100 haba,

2001-11

Source: ITU World Telecommunications/ICT Indicators database

140

120

100

80

60

40

20

0

Developed

World

Developing

2001

2002

2003

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2007

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2009

2010

2011


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The Asia-Pacifc region will continue to be thelargest regional mobile phone market, with3.9 billion subscriptions in 2020 (up rom 2.4billion in 2010). China will continue to be hometo the worlds largest number o mobile phonesubscriptions, with 1.3 billion subscribers in 2020

(up rom 839 million in 2010).

However, India currently the worlds second-largest mobile phone market will have signifcantgrowth potential not only in the Asia-Pacifc regionbut globally, with the number o mobile phonesubscriptions orecast to grow at an averageannual rate o 5.7 per cent during 2011-20, toreach 1.1 billion in 2020. From a luxury productused primarily in developed countries, mobiletelephony has become universally available. It isnow an integral part o lie or many.

Meanwhile, in the developed world, thecommercial deployment o next-generationtechnologies and devices will increase usageo advanced mobile services, which in turnwill open up many new, e-commerce businessopportunities and especially in developingcountries. Meanwhile, more data applicationsare now regularly being used in developingcountries to conduct business (m-commerce),engage in retail or commercial banking activities(m-banking) and to fnd work (m-labour).

mb h

The number o mobile phones

in use worldwide between 2000

and 2012 grew rom less than

1 billion to more than 6 billion.

The mobile revolution is

transorming livelihoods, helping

to create new businesses,

and changing the way we

communicate, work and earn

and spend income. The mobile

phone network is already the

biggest machine the world

has ever seen, and now thatmachine is being used to deliver

development opportunities on

a scale never beore imagined.

During this second decade o

the new millennium, maximizing

the potential o mobile phones

is a challenge that will engage

governments, the private

sector, and the development

community alike.

Source: World Bank, Information andCommunications for Development 2012:Maximizing Mobile


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7

Hw bf

b hy?

Mobile technology can be utilized by SMEsoperating in the agricultural and fsheriessectors. It also has uses or labour and transportmobilization, or micro-credit services and ormobile money. This section provides an overviewas to how mobile technology is being used bySME business operators in various sectors indeveloping countries.

A

Greater productivity can help boost armersincome, especially or small-scale armers andfshermen, who have limited resources to growand market their produce. Creating a moreefcient value chain at local or national levelsalso requires engaging many stakeholders, romarmers growing crops and raising cattle tosuppliers and distributors.

Farmers in developing countries are increasinglyutilizing mobile technology to increase theircommercial potential. According to a World Bank

study released in 2012, the benefts or armerswho use mobile phones includes access toagricultural inormation concerning stock piles andprices, data visibility or value chain efciency andbeing able to tap into new and existing markets.

When armers have access to inormation aboutprices and stocks, it helps them to reduce therisk o under-selling and o either over or under-supplying their crops in a given market. The WorldBank study shows that access to price inormationby armers has helped to increase arming incomeby 24 per cent. Sellers realized even greater gains

o up to 57 per cent, with overall price reductionsor consumers o around 4 per cent.

Case study

saa maa, amaaw

In June 2011, a grain trader arrived at my gateoering me 30 kwacha per kilo or my peanuts,Sara Maunda said. My SMS rom Esoko told methat the price was more than our times the tradersprice. When I showed him, he said, These people

are lying to you you will go very ar and fnd thatyou have lost money.

Maunda trusted both her instincts and the textmessages. She and our neighbours rented a pick-up truck in Madisi, the nearest town, and headedsouth to Lilongwe, 80 kilometres away, to sell theirgroundnut crop themselves. She said: the marketprice there was fve times the vendors oer. Myshare o the sale cleared 24,000 kwacha ($130)ater all expenses. I I had sold to the vendor at myvillage I would have made only 4,500 kwacha ($27).

Source: USAID Frontlines July/August 2012

Inormation transmitted by mobile phone alsoincludes access to early warning systems tomitigate the risk o losses due to extreme weatherconditions or to the spread o disease.

o aa a a

Mobile services can also enable better accessto markets and other value-chain stakeholders.Sellers are increasingly using their websites to

relay online inormation on transport and logistics,with some o these services being provided onmobile phones.

For example, through the use o voice andSMS in Morocco, armers coordinate with localtruckers to improve product transport and toidentiy where the best locations are or them todeliver their products. Some armers also makeuse o two-way trade by bringing products backrom larger, regional markets to sell in their ownrural communities.


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Product traceability has become increasinglyrelevant to those developing countries thatwant to gain or expand into new export markets.The use o ICT has led to improved consumerprotection and ood saety on the one hand andbetter livelihood outcomes or armers on the

other. Radio requency identifcation (RFID) chipsare also used to trace animal movement, enablingthe monitoring o animals rom cradle to grave.The use o the system in Namibia to replacetraditional paper-based recording has increasedthe accuracy o the data and the speed in whichit is disseminated, leading to higher monetaryreturns on livestock.

RFID has also been used or the prevention oanimal poaching. Governments are now ableto trace elephant and rhino herds and can take

steps to mitigate illegal poaching activities.Such approaches are increasingly showingpositive results in Arica and are contributingto sustainable development and to continuedprospects or tourism.

Fh

Fishermen and merchants buying and sellingfsh communicate through voice calls, via SMSmessages or by accessing specialist WirelessApplication Protocol (WAP) services. WAP is a

technical standard or accessing inormation overa mobile wireless network.

The WAP browser technology was created orolder mobile devices. It allows users to accessadapted web inormation and other data eveni they do not have newer generation smartphones. New generation phones and higherbandwidth access are supplanting WAP in mostdeveloped countries. However, the need orlow-cost mobile services and low penetrationo newer phones has thus ar kept WAP alive inmany developing countries.

Case study

mab ay sa

In 2003, in collaboration withSonatel (the Senegalesephone operator), Alcatel, IDRCand InoDev, the Senegalesetelecommunications companyManobi began to providefshermen with real time weatherreports and market prices usingWAP and SMS technology viamobile phones.

The interactive technologyenabled fshermen to input fsh

stock inormation or marketing

as well as departures and

estimated times o return so

that local fshing unions could

be alerted in emergencies. The

project successully persuaded

Sonatel to install a phone base

station near the beach, ensuring

network coverage up to 14 km

rom the shore.

In 2005, Manobi launcheda Geographic InormationSystem (GIS), using GPS andGSM technologies to increaseprotection at sea or fshermenand their boats, in partnershipwith insurance companies.It provides precise real-timelocalization up to 45 km oshore.Fishermen pay an insurancepremium based on time spentat sea, with their mobile phonesacting as security or both themand the insurance company.


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Mobile money services are increasing inpopularity. They have helped to improve howbusinesses operate and now they are alsocontributing to helping to close the poverty gap.One o the major barriers to poverty reduction isaccess to ormal fnancial systems or the poor.The use o inormal instruments means that thepoor are limited in their ability to save, borrow,repay debt and manage risk responsibly.

Mobile money services in developing countries

are gaining in prominence mainly due to theireective way o conducting payments andproviding access to fnance, particularly in areaswhere access to physical bank branches or evenATM machines is minimal (see Chart 4). They arehelping to increase productivity and efciencywhile at the same time reducing transaction costs.

One o the most successul and astestgrowing mobile banking services is M-Pesa,ounded in April 2007 by Saaricom, a Kenyantelecommunications company.

Saaricom launched the new mobile phone-based payment and money transer service tooer its customers an array o services, rangingrom depositing money into an account storedon a customers cell phone to sending balancesusing SMS technology to other users (includingsellers o goods and services) and to redeemdeposits or regular money. It also allows users tosettle their bills. Users are charged a small ee orsending and withdrawing money using the service.

mb y

M-Pesa has spread quickly and has become themost successul mobile phone-based fnancialservice in any developing country. By 2012, astock o about 17 million M-Pesa accounts hadbeen registered in Kenya.

M-Pesa is a branchless banking service, meaning

that it is designed to enable users to completebasic banking transactions without the need tovisit a bank branch. The continuing success oM-Pesa in Kenya has been due to the creation oa highly popular, aordable payment service withonly limited involvement o a bank.

Chart 4

nb b y y by ,

mah 2012

Source: GSMA Mobile Money Tracker 2012

140

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Wha sme ak

-?

E-commerce is generally presented in verypositive terms but along with the potential beneftscome potential problems or developing countries.The adoption o e-commerce in developingcountries diers greatly rom one country to theother. But many ace a number o similar obstaclesto e-commerce. These mainly include a lack ofnancial, legal and physical inrastructure or thedevelopment o e-commerce.

The development o various types o e-commerce

depends primarily on the existing structure oan industrial sector and how it fts into a givensectoral value chain. Additionally, the dierenceo cultures and business philosophies acrossdeveloping countries has also been seen tolimit the applicability and transerability othe e-commerce models designed by somedeveloped countries.

Case study

B dda, thaa

Thailands Department o Business Development(DBD) is encouraging SME operators to seek newopportunities via e-commerce while introducingthe DBD Registered symbol to ensure security oronline shoppers.

Deputy Minister o Commerce SiriwatKajornprasart revealed that he has assigned theDBD to support Thai SMEs in doing businessvia e-commerce. Due to the huge growth andincreasing popularity o e-commerce, he saidthat Thai SMEs should consider expandingtheir businesses online in order to fnd newopportunities and reduce production costs at thesame time. E-commerce can also help enhancethe potentials o Thai companies to compete inthe international market.

Source: Thai Financial Post published on 6 August 2012

Although SMEs have numerous reasons orengaging in e-commerce, the security concernso the customers remain an important impedimentto expanding e-commerce services and business.Probably, the biggest drawback is the reluctanceo customers to provide online inormation abouttheir credit cards.

Ensuring both trust and amiliarity through a well-unctioning website has proven to be one o themajor e-commerce success actors. In the same

vein, the growth o broadband has created agreater need or users to protect their security andprivacy in an online environment. Both individualusers and businesses report that computer virusesare the malware they encounter the most.Security continues to be a problem or onlinebusinesses as customers have to eel confdentabout the integrity o the payment process beorethey commit to the purchase.

The potential o e-commerce can only beachieved given adequate inrastructure. In most

developing countries, this constraint presentsa major obstacle. Smaller, low-income internetmarkets in developing countries, particularly inArica, have been unable to attract sufcientinvestment in inrastructure. Combined withlack o competition, this results in bandwidthcost that can be up to 100 times higher than indeveloped countries.


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In most cases, these countries remain outsidethe reach o fbre optic cables and must turn tosatellites or international and sometimes evendomestic connectivity. This happens even inspite o signifcant improvements brought aboutby technology.

Another area o concern is the lack o technicalskills which keeps SMEs rom realizing their ulle-commerce potential. Many developing countriesdo not have a workorce that has sufcienttraining in ICT and mobile technology. This greatlydisadvantages many SMEs that may be seekingto diversiy or to branch out into e-commerce.

Making sure enterprises possess the requiredset o skills and capabilities to use relevanttechnologies productively is key to securing

the economic benefts o e-commerce. Manyentrepreneurs in developing countries, andespecially in least-developed countries, lack thenecessary capacity or awareness to take ulladvantage o ICT (see Chart 5).

Even i entrepreneurs in developing countrieshave access to mobile phones or the internet,they may not know how best to leverage them ortheir business operations. In some circumstancesthey may even ail to see the value o investing inthe technology required so as to be able to take

advantage o the opportunities o e-commerce.

Case study

pa,

fb- a

The Peruvian government hasannounced that it will support thedeployment o a national fbre-optic backbone or broadbandaccess, Andina reports. Theannouncement ollowed thepassing last week o the Lawor the Promotion o Broadbandand Construction o Optical Fibre

Backbone.Telecoms regulator Osiptel willoversee the rollout, and ensureaccess is competitive, whilst theAgency or the Promotion oPrivate Investment (ProInversion)has been tasked with selectinga company to carry out theinstallation. Osiptel is understoodto be drawing up technical criteriaor the network, which will link

all provincial capitals, and haveconnections to all districts.

Further, the broadband billensures net neutrality, makingit illegal or an internet serviceprovider (ISP) to block, intererewith, discriminate against orrestrict the right o any user touse an application, regardless oorigin, destination or nature.

Source: TeleGeography, published on 25July 2012

Source: World Bank Enterprise Surveys

Chart 5

e wh h w wb, 2006-09 ( %)

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80

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This brochure has ocused on how e-commerce and mobile telephony have

transormed the lives o many people in developing countries. Access to the

internet and mobile phones help improve the livelihood o the poor through

better communications and greater access to inormation. Many poor armers

are now able to receive better prices or their crops because they have access

to inormation on market prices. The Arican company TradeNet, a Ghana-based

trading platorm, is a key example.

The internet and mobile phones have also spawned a wealth o micro-

enterprises, oering work to people with little education and ew resources,

such as selling airtime and repairing or reurbishing handsets. When armers

have access to inormation about prices and stocks, it helps them to reducethe risk o under-selling and o either over or under-supplying their crops in a

given market. Inormation transmitted by mobile phone also includes access

to early warning systems to mitigate the risk o losses due to extreme weather

conditions or to the spread o disease.

This brochure has examined dierent ways o using e-commerce and has

looked at some specic sectors where SMEs tap into vital market inormation

on which their businesses depend. Others still are involved with the

development or the dissemination o mobile services such as mobile banking,

credit and insurance services.

It is important to remember, however, that SMEs are not alone in their

involvement with e commerce. The government and the private sector have vital

roles to play not only in allowing e commerce to take place but to ensure that it

grows and benets not only SMEs but also consumers. Much o the support to

e-commerce depends on having or providing the right inrastructure, regulations

and the policy mix allowing e-commerce to thrive.

High-quality and reliable transactions over the internet need advanced

telecommunications systems and ones that oer broadband and mobile

broadband services at aordable prices to both companies and private

users. This requires an enabling environment where competition between

telecommunications providers is robust. Also required is a workorce with solid

ICT skills. Such skills are crucial or the urther development o e-commerce

and other mobile applications. The latter are critical in the quest to producerelevant and high-quality applications. Here too, governments can play a vital

role in ensuring that secondary and vocational schools teach the necessary

skills to help build a viable digital economy and one that is capable o adapting

to the needs o its users.

c


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ISBN 978-92-870-3864-7World Trade Organization, 2013

World Trade Organization

Centre William RappardRue de Lausanne 154

CH-1211 Geneva 21SwitzerlandTel.: +41 (0)22 739 51 11Fax: +41 (0)22 731 42 06email: [email protected]: www.wto.org

PHOTO CREDITS

Front cover rom let to right:

Getty/Joseph Van OsGetty/Zubin ShroGetty/Luca Sage

Back cover rom let to right:

Bloomberg via Getty ImagesRichard LordPage 1: U. Baumgarten via Getty ImagesPage 3: India Today Group/Getty Images,Richard LordsPage 4: AFPPage 6: M. DeFreese/CIMMYTPage 7: Getty/Joseph Van OsPage 8: Bloomberg via Getty ImagesPage 9: Gamma-Rapho via Getty ImagesPage 10: Bloomberg via Getty Images

Design: Audrey Janvier Designs


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ISBN 978-92-870-3864-7

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