The World Trade Organisation has called e-commerce a transformative force in the global trade, supporting growth and development and job creation, hence calling upon members to make it a force for inclusion.
Roberto Azevêdo, director-general of WTO stated this when he visited San Francisco, United States, recently to attend a roundtable event organised by the International Chamber of Commerce (ICC) at Facebook’s headquarters.
The discussion was attended by representatives of tech companies, ranging from start-ups, represented by Allied for Start-ups, to industry leaders including Facebook, Google, Alibaba, PayPal and eBay. The discussion focused on the role of trade policy in accelerating the growth of e-commerce and the digital economy around the world.
Meanwhile, e-commerce continues to plateau as web traffic on major e-commerce websites in Nigeria records low patronage.
A review on Alex, a website that ranks most visited websites, indicated that Konga fell 113 places in global web ranking during the first three months of 2016, while Jumia Nigeria fell by 183. This trend began in the fourth quarter of 2015 and is yet recover.
Speaking after the discussion in US, Azevêdo said: “By reducing the trade costs associated with physical distance, e-commerce allows businesses to access the global marketplace, reach a broader network of buyers and participate in international trade. In this way, e-commerce can also be a force for inclusion.”
He added, “Broader dissemination of such technologies means that the trade opportunities generated by e-commerce are also available to businesses in developing countries, with some of them making significant headway in recent years. But there is a long, long way to go.
Azevêdo stated that Africa and the Middle East share less than 2 percent of the world e-commerce market. However, this market share is under threat as e-commerce in these regions has witnessed a lull as a result of economic downturn, which has limited consumers’ purchasing power.
“Similarly, we must ensure that e-commerce works as a springboard for smaller companies to compete and reach new markets.”
There is an on-going debate at the WTO about how to give fillip to e-commerce in both developed and developing nations. The digital economy experts say is changing the rules in every sector, dictating how customers are served and how business is done.
“Some have been holding workshops on these issues and presenting ideas on how they could be advanced at the WTO. At the same time, we have seen a surge of private sector engagement in our work. This is very welcome as I think it is essential that the views of the private sector are heard, including on e-commerce issues. I therefore welcome the ICC’s initiative in bringing together tech company representatives at this important moment in the global trade debate,” Azevêdo said.
Wole Michael Olatokun and Isola Ajiferuke, in their papers for the African Regional Centre for Information Sciences (ARCIS) among other things, say a greater trust in online banking and payment system in Nigeria will improve e-commerce. Also proper infrastructure, security concerns, privacy issues, unreliable distribution framework and low penetration of debit cards are things that will be improved for e-commerce to thrive.
ISAAC ANYAOGU
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