Truly Borderless E-Truly Borderless E-Commerce? On its way…Commerce? On its way…

The Digital Economy: Change the PerceptionsThe Digital Economy: Change the Perceptions

May 18, 2001May 18, 2001

Ingrid Hagen, Partnerships Manager, IICDIngrid Hagen, Partnerships Manager, IICD

Edward Addo-Dankwa, Ministry of Food and Agriculture, GhanaEdward Addo-Dankwa, Ministry of Food and Agriculture, Ghana

Local traders acting in global marketsLocal traders acting in global markets

CommandButton1Extensive market information means more choice and “perfect” competition

“Perfect” competition? Still imperfect…“Perfect” competition? Still imperfect… Behind the simple keystrokes of transactions, Behind the simple keystrokes of transactions,

complicated processes make markets complicated processes make markets “imperfect”:“imperfect”:• Connectivity and accessConnectivity and access• Enabling framework including financial marketsEnabling framework including financial markets• Human capacity development Human capacity development • ContentContent

CommandButton1As long as LDCs do not have the supporting processes in place, e-commerce will not be truly borderless.

Making e-commerce truly borderlessMaking e-commerce truly borderless Responsibility of all: LDCs and developed Responsibility of all: LDCs and developed

countries as well as the private, public and non-countries as well as the private, public and non-profit sectorsprofit sectors

IICD is active in working with LDC partners to IICD is active in working with LDC partners to help articulate e-commerce content and skills help articulate e-commerce content and skills developmentdevelopment• 6 projects in LDCs using e-commerce to support 6 projects in LDCs using e-commerce to support

strengthened economic developmentstrengthened economic development

E-commerce on its way in LDCs…E-commerce on its way in LDCs…

Reintermediation

Manufacturer/ producer

Wholesaler / disributer

E-retailer

Portal/ aggregator

Consumer

Disintermediation

SourcesSources: Benchmark Capital; : Benchmark Capital; The EconomistThe Economist, February 24, 2000, February 24, 2000

The start of e-commerce activitiesThe start of e-commerce activities

BUY!BUY!CommandButton15 to 10%

Price Price comparisonscomparisons

Sales Sales locations...locations...

Quality Quality comparisonscomparisons

Product Product availabiltyavailabilty

Best service Best service packagepackage

CommandButton140 to 60%

Burkina Faso: A critical mass is on its way…Burkina Faso: A critical mass is on its way…

CommandButton1Central access and data

collection point in Ouagadougou

Regional collection

point

Regional collection

point

Regional collection

point

Regional collection

point CommandButton1Small-scale agricultural producers and exporters can access, retrieve, analyse and disseminate market information

• crop pricescrop prices

• inputs pricesinputs prices

• market locales and demandmarket locales and demand

• distribution methods and costsdistribution methods and costs

• cultivation techniquescultivation techniques

• disease and pest treatmentdisease and pest treatment

• advantages/disadvantages of advantages/disadvantages of cotton varieties cotton varieties

Tanzania: A critical mass is on its way…Tanzania: A critical mass is on its way…

Micro, small and medium-Micro, small and medium-scale cotton enterprisesscale cotton enterprises

Business Information Business Information Services (BIS)Services (BIS)

CommandButton1Cotton producers and value chain stakeholders can get accurate market information to help stabilise and improve income streams

Basic presence – Information sharing

Interaction with clients and suppliers

Making transactions on-line and integrating business functions

Building business communities and networks on-line

CommandButton1Making e-commerce in LDCs truly borderless and changing the perceptions for good!

LDCs moving quickly along the path of e-commerceLDCs moving quickly along the path of e-commerce