Bangladesh has laid an essential foundation for a technology-driven and skill-based digital economy, a new report by UNCTAD says, but still needs to put in place a comprehensive national e-commerce strategy and improve delivery logistics.
A Rapid eTrade Readiness Assessment, completed by UNCTAD at the request of the Bangladesh government, pinpoints improvements in telecommunications infrastructure, trade logistics, payment solutions, laws and regulations, skills development, and financing, that can accelerate e-commerce and spread the benefits throughout the economy.
“All commercial activities are going to be digital, and all current business laws, regulations and policies are to be made compatible with the digital commerce revolution,” Mustafa Jabbar, Bangladesh’s Minister, Ministry of Post, Telecommunication and Information Technology, said as he received the assessment.
“It is fantastic to see the great strides that Bangladesh has taken to prepare for a digital future. This e-Trade Readiness Assessment also recognizes that there are growth and employment gains yet to be made by a comprehensive pivot to e-commerce,” Shamika N. Sirimanne, director of UNCTAD’s division on technology and logistics, said.
The report found that the government had supported public-private dialogue and collaboration in digitalization matters “in an exemplary manner”.
Its Digital Bangladesh initiative is part of its Vision 2021 national development plan and is supported by the A2I initiative currently led by the Information and Communication Technology (ICT) Division of Jabbar’s ministry.
A2I is an umbrella initiative that has shepherded growth in the ICT sector and the overall digital economy ecosystem of the country. Since its inception in 2010, the information and communications technology sector in Bangladesh has grown at an astonishing average pace of 40% a year.
The tech sector is a natural fit in the country’s development trajectory to create jobs for the 110 million under 35-year-olds in the nation of 160 million.
With 65% of Bangladesh’s people living in rural areas, connectivity remains a priority.
The report says support for e-commerce in a comprehensive national strategy – recognizing all barriers to business from “an ecosystem perspective” – would help to increase the confidence of the general public in e-commerce, and to address the digital divide between urban and rural areas with higher priority.
Improvements in trade logistics – such as better postal services and secure payment modes – are also required, it says.
The affordability of Internet services is also a major concern for companies engaged in e-commerce, the report notes.
A new report finds that active enforcement against foreign bribery significantly decreased since 2018.