Unlocking potential: Addressing inclusivity barriers in e-commerce trade to deliver sustainable impact in communities everywhere (United Kingdom)
7 Dec 2023 16:30h - 18:00h UTC
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Sangeeta Khorana
In the analysis, the speakers discussed several key aspects of e-commerce and its impact on various areas, including gender equality, business growth, and economic development. One important topic that emerged was the significance of sustainable supply chains and inclusive trade. The speakers emphasised the need for businesses to focus on sustainable practices and ensure that trade benefits all stakeholders, including vulnerable groups and women. Furthermore, they highlighted the role of the E-commerce Trade Commission in promoting these principles and driving positive change in the industry.
Another major concern addressed by the speakers was gender disparities in the e-commerce sector. They noted that women face challenges related to digital literacy, limiting their access to the digital world and hindering their participation in e-commerce opportunities. This disparity was further reflected in the lack of inclusive representation of women in businesses. The speakers argued that addressing these issues should be a priority to create a more equitable and inclusive e-commerce ecosystem.
Financial access was another significant hurdle discussed, particularly for women-led businesses. The analysis revealed that many women entrepreneurs struggle to secure the necessary finances to start or expand their businesses. This underscores the need for greater financial inclusion and support for women entrepreneurs in the e-commerce industry.
The rise of protectionism and barriers to free trade was also identified as a disheartening trend. The speakers expressed concern over countries implementing trade barriers, which restrict the movement of goods and services and hinder global trade. This protectionist approach was seen as detrimental to business growth and economic development.
On a more positive note, success stories like Amazon and Paytm were highlighted as examples of the transformative power of e-commerce. Amazon, with approximately 10 million suppliers globally, demonstrated the vast opportunities for businesses to achieve profitability and success through e-commerce. Paytm, in particular, was noted for bringing a revolution in India, enabling even illiterate shopkeepers to navigate digital transactions effectively.
The speakers recognised the important role played by the E-commerce Trade Commission in facilitating positive change in the industry. They applauded the Commission's advocacy for open policies and support for businesses, as well as its collaboration with influential players in the e-commerce marketplace, such as Amazon, Alibaba, and Shopify.
Finally, the analysis highlighted the potential of the E-commerce Trade Commission to provide knowledge transfer and training workshops for young entrepreneurs. This was seen as an opportunity to equip aspiring business owners with the skills and information needed to succeed in the e-commerce marketplace.
In conclusion, the analysis shed light on various aspects of e-commerce and its implications for gender equality, business growth, and economic development. It emphasised the importance of sustainable supply chains, inclusive trade, and financial inclusion for women-led businesses. The role of the E-commerce Trade Commission as a catalyst for positive change was recognised, while the negative impact of protectionism on global trade was lamented. Success stories like Amazon and Paytm exemplified the potential of e-commerce, while the need for greater gender equality and access to digital literacy was underscored. Ultimately, the analysis highlighted the opportunities and challenges that exist in the evolving e-commerce landscape.
Daniele Tricarico
GSMA, the Global Association of the Mobile Industry, is actively involved in promoting digital, mobile-based solutions in low- and middle-income countries. Through partnerships with mobile operators and companies, GSMA works towards advancing innovative solutions that drive economic growth, improve connectivity, and enhance the quality of life in these regions.
To support its mission, GSMA has established the Mobile for Development foundation, collaborating with international donors like FCDO, Gates, and USAID. This collaboration allows GSMA to leverage resources and expertise to effectively address the unique challenges faced by these countries.
One notable initiative is GSMA's partnership with the Department of Business and Trade of the UK government. Through this partnership, GSMA is conducting a study on e-commerce adoption by micro, small, and medium enterprises (MSMEs) across Africa. This research provides valuable insights into the barriers and opportunities for MSMEs to harness the potential of e-commerce, contributing to their growth and economic development.
The study also highlights the significant reliance on social media platforms for e-commerce activities by micro entrepreneurs, especially women-led MSMEs. This emphasizes the importance of upskilling and capacity-building programs to equip individuals with necessary business, technical, and digital skills to fully utilize e-commerce's potential.
GSMA not only supports start-ups in developing e-commerce logistics and delivery solutions but also recognizes the potential of integrating delivery and financial services. An example is the partnership between Musanga, a company in Zambia, and a local mobile operator. This integration enables riders to provide financial services through mobile payments, enhancing convenience and reducing inequalities by expanding access to services.
Efficient last mile delivery is achieved by leveraging underutilized assets and existing infrastructure. For instance, Musanga utilizes motorbikes for delivery, while MTANI recruits retailers as pick-up points to address challenges with the postal system.
However, lack of trust remains a significant challenge in e-commerce adoption, particularly in emerging markets like Africa and South Asia. Issues such as fraud, informal arrangements, and payment concerns contribute to this lack of trust. Building trust through transparent and secure systems is crucial for widespread e-commerce adoption.
To effectively support MSMEs, GSMA emphasizes the need for greater coordination between the private and public sectors. Currently, efforts are fragmented across various initiatives from different development partners, making it challenging to identify priorities and implement cohesive strategies. Collaboration and partnerships are key in creating an enabling environment for MSMEs to thrive.
Additionally, GSMA recognizes the importance of effective implementation of digital trade policies at the local country level. Discussions on digital trade frameworks are taking place at regional and sub-regional levels, but it is essential to ensure that these policies are enforced in individual countries to maximize their impact.
Technological innovations play a vital role in the e-commerce ecosystem, particularly in areas like last-mile delivery and payments. Public-private partnerships are used to develop digital addressing systems, and the use of geodata and virtual addressing is growing. These innovations enhance efficiency and effectiveness, improving access to goods and services for consumers.
Innovations in business models are also crucial, especially in low- to middle-income countries. B2B solutions and shifts in the value chain help overcome challenges in reaching customers in the last mile. By serving independent traders and wholesalers, e-commerce platforms contribute to their growth and success.
E-commerce presents great opportunities for smallholder farmers, who can benefit from agri-commerce platforms connecting them with markets. These platforms have gained investor interest and confidence due to their functionality and market access enhancement for farmers.
In conclusion, GSMA's efforts in advancing digital, mobile-based solutions in low- and middle-income countries demonstrate the potential of e-commerce to drive economic growth, improve connectivity, and enhance livelihoods. Upholding trust, coordination between sectors, capacity-building, and effective implementation of digital trade policies are essential for realizing the full benefits of e-commerce and fostering inclusive and sustainable development.
Marco Forgione
Cross-border trade offers numerous benefits to businesses, including increased sustainability, resilience, employment opportunities, innovation, and profitability. Supporting and professionalising cross-border trade is considered crucial in addressing global challenges. E-commerce can play a vital role in supporting micro, small, and medium enterprises (MSMEs) in international trade. Online platforms and marketplaces can facilitate their participation by helping them overcome challenges.
Access to the Global South for ongoing trade with the Global North depends on supporting MSMEs and the informal sector in compliant cross-border trade. The UK has a high percentage of MSMEs, highlighting the importance of enabling their participation in international trade.
The E-Commerce and Trade Commission, within the UK's Department for Business and Trade, brings together marketplaces and key actors to support MSMEs. Their efforts contribute to achieving Sustainable Development Goals related to decent work, economic growth, innovation, infrastructure, and partnerships.
The digitalization of MSMEs requires coordinated action between the private and public sectors. Addressing the lack of consumer trust and challenges related to social commerce is crucial. Upskilling and capacity building are essential for successful digitalization. Priority should be given to supporting women-led MSMEs and promoting gender equality.
However, the existing moratorium on digital trade poses challenges to the development of the Global South. Discussions on the moratorium at MC13 may further restrict digital trade. Solutions must be found to ensure equitable international trade opportunities.
In conclusion, cross-border trade, supported by e-commerce and collaboration between public and private sectors, is vital for sustainable economic growth, innovation, and employment. The E-Commerce and Trade Commission supports MSMEs in international trade. Digitalization requires capacity building and upskilling, with a focus on gender equality. Addressing the moratorium on digital trade is necessary for the development of the Global South. The summary should include long-tail keywords such as cross-border trade, MSMEs, e-commerce, sustainability, resilience, innovation, employment, and gender equality.
Jacqueline Jumah
The analysis of the provided statements reveals several key points regarding the development of digital trade and the challenges faced by MSMEs in Africa. Africa Nenda supports the development and scale of instant and inclusive payment systems across Africa, highlighting it as essential for promoting digital trade and enabling the success of Micro, Small, and Medium Enterprises (MSMEs) in Africa.
However, there are challenges faced by MSMEs in Africa, particularly concerning business formalization, digital inclusion, and trade facilitation issues. Many MSMEs currently operate informally without registered businesses, making it difficult for them to engage in formalized payment systems along the supply chain due to a lack of necessary documentation. Additionally, poor digital infrastructure and a lack of devices further disconnect MSMEs from the digital economy. It is worth noting that MSMEs often resort to using personal bank accounts for business transactions, indicating a lack of proper financial infrastructure tailored to their specific needs. Moreover, trade facilitation issues at borders, involving bureaucratic procedures, controls, and bribery, act as deterrents for MSMEs to engage in cross-border trade.
The issue of informal addressing emerges as a challenge in the last mile delivery of e-commerce in Africa. Many Africans rely on landmarks, such as trees or the center street, instead of formal addresses, which poses difficulties for accurate and efficient delivery. However, a potential solution to this problem is presented: the use of digital financial services networks as delivery points. This solution is seen as an effective way to overcome the challenges of informal addressing by leveraging existing digital infrastructure and partnerships. Collaboration between e-commerce players and mobile money platforms enables the utilization of agent locations as delivery points. Technological advancements have also been made in geolocating agents and mapping their locations more accurately.
Collaboration is emphasized as crucial for progress in Africa, specifically in facilitating cross-border payments, which are essential for the success of MSMEs. African Nenda is facilitating collaboration to enable cross-border payments in alignment with the African Continental Free Trade Area (AFCFTA) protocol. They are working with the AFCFTA Secretariat to promote digital payments and facilitate digital trade, thus fostering economic integration and growth across the continent.
Policy harmonization is identified as another critical factor that authorities need to address to provide an open and level playing field for financial institutions. Harmonizing policies across the continent would facilitate an enabling environment for financial institutions to operate efficiently and securely. Active collaboration with the African Union (AU) is highlighted in advocating for policy harmonization, with efforts focused on introducing a regional FinTech licensing regime that enables the passporting of FinTechs to operate across different markets.
The importance of Fintech companies in facilitating e-commerce and MSME operations is acknowledged. Firms such as Wave and Data Mint play a crucial role by providing services like currency conversion, capacity building, and facilitating cross-border payments. Their contribution to the digital trade ecosystem enables MSMEs to thrive and expand their operations.
The role of mobile money and communication platforms, such as M-Pesa and WhatsApp, in driving the digital economy in countries like Uganda, Tanzania, and Kenya is emphasized. The wide adoption of mobile money for trade, combined with e-commerce providers linking their wallets to mobile money platforms, demonstrates the significant impact these technologies have on facilitating trade and financial transactions.
In conclusion, Africa Nenda supports the development and scale of instant and inclusive payment systems across Africa, while challenges faced by MSMEs include business formalization, digital inclusion, and trade facilitation issues. The adoption of digital financial services networks as delivery points presents a promising solution to the addressing problem in e-commerce. Collaboration, policy harmonization, and the role of Fintech companies and mobile money platforms are crucial in driving the digital trade ecosystem and supporting the growth of MSMEs in Africa.
Dmytro Tupchiienko
Dmytro Tupchiienko, an SME owner, is involved in the wholesale market of electronic and telecommunication equipment and parts. He operates a company consisting of two people, trading these goods from the UK to continental Europe. However, Brexit has posed significant challenges for cross-border trade in the MSME sector. Issues related to order fulfillment, delivery, and shipping have arisen due to the UK's departure from the EU. Although the British-Ukrainian free trade agreement has had some impact on companies in this geographical area, logistical problems caused by Brexit remain unresolved, leading to overstocking or understocking issues that hinder meeting customer demands.
The UK banking system also faces inefficiencies due to its overlap with logistics and storage, as well as different time zones. Dmytro Tupchiienko highlights time constraints caused by HSBC's front office in Kolkata, where customers often need to wait for about an hour online to solve problems. Moreover, UK banks have significantly reduced their branch presence, making it increasingly difficult for customers to resolve issues directly. For example, the next available appointment at HSBC Bank is in March 2024, illustrating the challenges faced by customers seeking face-to-face assistance.
In contrast, African companies have adopted innovative and efficient communication methods, particularly using WhatsApp, to address problems in an online regime. Inspired by this, it is suggested that UK firms incorporate similar approaches to improve communication efficiency and effectiveness.
Insurance companies in the UK also present challenges for businesses. Dmytro Tupchiienko notes that one company changed its requirements, making it impossible to continue working with them. This indicates that insurance companies in the UK frequently modify their criteria, making it challenging for businesses to work with them consistently.
To overcome inefficiencies and barriers in the current systems, innovative solutions are required. Dmytro Tupchiienko successfully renewed his insurance for his fleet and warehouse using an online approach, highlighting the potential benefits of innovative strategies in improving business operations.
The shifting sanctions environment and regulatory changes have posed additional challenges for businesses, particularly those involved in international trade. International couriers are demanding additional paperwork based on the countries through which products pass, leading to delays in order fulfillment. This necessitates involving multiple logistical providers to cope with the increased workload. Efficient systems and strategies are required to navigate this challenging environment and handle logistics while complying with regulations.
Dmytro Tupchiienko values his membership with the Institute of Experts, which provides networking opportunities, training, and visibility for career growth. He has experienced intellectual and financial benefits from his engagement with the Institute, indicating its significance in supporting professionals in their career development. He also highlights the positive impact of the Institute's digital credentials, which provide validation and boost online visibility, thereby opening new opportunities.
In conclusion, Dmytro Tupchiienko's experiences as an SME owner highlight the challenges faced by businesses in the UK, particularly in the areas of cross-border trade, banking, communication, insurance, logistics, and regulation. Innovative solutions, efficient systems, and strategies are needed to address these challenges and ensure the growth and success of businesses in these sectors. Additionally, membership with professional organizations, such as the Institute of Experts, and the adoption of digital credentials can provide valuable networking and visibility opportunities for professionals in the UK.
Kostas Rossoglou
Shopify, a well-known Canadian e-commerce brand, offers a wide range of technical solutions to address the challenges faced by entrepreneurs and SMEs. It serves as a one-stop shop for individuals aiming to create, manage, and expand their businesses. With its commitment to comprehensive assistance, Shopify provides solutions for setting up online stores, finding customers, marketing products, facilitating payments, and managing deliveries. Gender equality is a key priority for Shopify, as over 53% of businesses on their platform are run by women. These women-led businesses are also reported to achieve 5% higher profitability than average businesses. Shopify also recognizes the importance of localization for international success, providing merchants with tools and features to effectively tailor their services to local markets. The company identifies potential for e-commerce growth in regions such as the Middle East, Africa, Southern Europe, and Southeast Asia. They emphasize the rise of social e-commerce in Southeast Asia, where six of the fastest-growing emerging markets are located. Collaboration is another important aspect for Shopify, as they value the efforts of the UK Trade Commission and Southeast Asia's emerging e-commerce sector. Shopify supports open trade policies and warns against digital trade protectionism, advocating for more open trade policies to sustain economic growth and reduce inequalities. Technology innovations, including artificial intelligence (AI), play a vital role in empowering entrepreneurs and overcoming challenges. Shopify has developed AI products to assist merchants, with success stories of entrepreneurs leveraging technology to expand their businesses. Sustainability is also a priority for Shopify, as they developed the "Planet" app, allowing merchants to offset carbon emissions generated from each sale. Overall, Shopify stands out as a comprehensive and supportive technology company, dedicated to solving the challenges faced by entrepreneurs and SMEs in the e-commerce sector, while promoting gender equality, localization, collaboration, open trade, technology innovations, and sustainability.
Speakers
DT
Daniele Tricarico
Speech speed
173 words per minute
Speech length
1995 words
Speech time
691 secs
DT
Dmytro Tupchiienko
Speech speed
136 words per minute
Speech length
1265 words
Speech time
558 secs
JJ
Jacqueline Jumah
Speech speed
175 words per minute
Speech length
1703 words
Speech time
585 secs
KR
Kostas Rossoglou
Speech speed
193 words per minute
Speech length
1861 words
Speech time
578 secs
MF
Marco Forgione
Speech speed
145 words per minute
Speech length
1812 words
Speech time
752 secs
SK
Sangeeta Khorana
Speech speed
156 words per minute
Speech length
1339 words
Speech time
514 secs
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