From policy and reforms to infrastructure and cooperation, a new study unpacks what developing economies need to harness digital trade for inclusive growth.

To ensure digital trade supports sustainable and inclusive growth, it’s high time for concerted efforts to bridge the readiness gap holding many developing countries back, says UN Trade and Development (UNCTAD) in a new study released on 15 October.

The report, covering 23 developing economies across Africa, Latin America, Asia and the Pacific, cites common barriers related to resourcing constraints, limited policy support, as well as persistent gaps in skills and infrastructure.

To change course, it calls for:

• Deeper integration of e-commerce into national development and trade agendas to drive innovation, job creation and resilience.
• Strengthening implementing agencies and national statistical offices to track progress and shape evidence-based reforms.
• Greater regional cooperation to harmonize rules, improve payment interoperability and facilitate cross-border e-commerce.
• Bridging digital divides, especially for women, through better connectivity, digital skills development, while improving access to finance for micro-, small- and medium-sized enterprises.

UNCTAD16: Making the digital economy work for people, prosperity and the planet

The report echoes long-standing calls for an inclusive, secure and sustainable digital future by closing gaps in infrastructure, governance and skills to ensure no one is left behind.

It comes ahead of the 16th United Nations Conference on Trade and Development (UNCTAD16), set for 20-23 October in Geneva.

The quadrennial conference will be a pivotal moment to scale up reforms, partnerships and investment in digital readiness – with the UN’s Global Digital Compact as a guide, and the 20-year Review of the World Summit on the Information Society underway.

Governments, development partners and the private sector will come together to reaffirm their commitment to inclusive digital transformation.

“The road to digital readiness is not easy,” says UNCTAD Secretary-General Rebeca Grynspan, “It demands the relentless coordination, constant evaluation and the unwavering resolve of champions.”

What else is UNCTAD doing to help?

The study is the fourth conducted under UNCTAD’s eTrade Implementation Support Mechanism launched in 2020 to help partner countries turn recommendations into action through policy dialogue, stakeholder engagement, coordination support and capacity building.

Since 2017, UNCTAD has completed eTrade readiness assessments for 40 economies, 27 of which least developed countries, helping shape national and regional e-commerce strategies and inform trade negotiations.

In response to recommendations, many governments have introduced mandates, set up coordination mechanisms and established monitoring tools.

Countries like Cambodia, Côte d’Ivoire, Kenya and Vanuatu have expanded broadband networks, modernized legal frameworks and promoted digital finance.

Regional initiatives in East Africa, West Africa and the Pacific have advanced connectivity, digital trade rules and digital payment systems.

Additionally, UNCTAD alongside the International Telecommunication Union and the World Bank recently launched an initiative aimed at catalysing investment in scalable digital infrastructure models.

The collaboration will help close the digital divide by mobilizing collective financing, advancing data sharing and strengthening capacity building.