Tonga E-Commerce Strategy and Roadmap

June 2021

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Strategies and Action Plans

Author: Ministry of Trade and Economic Development (MTED

The Tonga E-Commerce Strategy and Roadmap (TESR) provides a comprehensive multi-year implementation framework to develop the country’s e-commerce ecosystem between 2021 and 2026. The roadmap outlines seven key Priority Areas, each with specific Strategic Outputs and Measures for implementation, along with indicative timelines, stakeholders, and resource considerations.

Priority area 1: E-commerce readiness and strategy formulation

  • Objective: Mainstream digital trade into national policies.
  • Key actions:
    • Facilitate public-private dialogue on e-commerce.
    • Produce annual statistics on e-commerce.
    • Integrate digital trade in policies like the Tonga Trade Policy Framework (TTPF) and National Investment Policy.
  • Timeline: Initiate immediately and review annually.
  • Implementers: MTED, Tonga Chamber of Commerce, Tonga Department of Statistics.

Priority area 2: ICT infrastructure and services

  • Objective: Improve access, quality, and affordability of internet services.
  • Key actions:
    • Extend high-quality internet to remote islands.
    • Reduce costs for ICT devices and data plans.
    • Foster public-private partnerships for last-mile connectivity.
    • Digitally interconnect all government ministries.
  • Timeline: 2021–2024, with ongoing upgrades.
  • Implementers: MEIDECC, telecom operators (TCC, Digicel), MOI.

Priority area 3: Trade logistics and trade facilitation

  • Objective: Enable reliable and affordable delivery infrastructure.
  • Key actions:
    • Complete ASYCUDA system implementation.
    • Launch a national home addressing system.
    • Improve sorting facilities and logistics services.
    • Reduce shipping/airfreight costs and enable pre-clearance of goods.
  • Timeline: 2021–2025.
  • Implementers: Tonga Post, MORC, MTED, logistics providers.

Priority area 4: Legal and regulatory framework

  • Objective: Establish a robust and updated legal environment.
  • Key actions:
    • Pass key e-commerce laws: Electronic Transactions, Privacy, Consumer Protection, and Computer Crimes.
    • Align national laws with UNCITRAL and Budapest Convention models.
    • Introduce licensing for payment service providers and data protection standards.
  • Timeline: 2021–2023.
  • Implementers: Attorney General’s Office, MTED, Reserve Bank of Tonga.

Priority area 5: Electronic payment solutions

  • Objective: Promote inclusive, cashless transactions.
  • Key actions:
    • Implement a national payment system.
    • Expand mobile money usage and merchant adoption of POS devices.
    • Support reconciliation systems for digital payments.
  • Timeline: 2021–2024.
  • Implementers: Reserve Bank of Tonga, BSP, TDB, Digicel.

Priority area 6: E-commerce skill development

  • Objective: Improve digital literacy and business capacity.
  • Key actions:
    • Integrate e-commerce into formal education and TVET.
    • Support MSMEs with digital tools and entrepreneurship training.
    • Establish business incubators (e.g., USP initiative).
  • Timeline: 2021–2025.
  • Implementers: MET, USP, MTED, NGOs, Tonga Business Enterprise Centre.

Priority area 7: Access to finance for e-commerce

  • Objective: Ensure financing for digital start-ups and informal businesses.
  • Key actions:
    • Design loan schemes tailored to online ventures.
    • Encourage microfinance and fintech engagement.
    • Leverage remittance flows for productive use in digital business.
  • Timeline: 2022–2025.
  • Implementers: TDB, South Pacific Business Development, MTED, Women’s Division of MIA.

Governance and coordination

A National E-Commerce Committee under the MTED will oversee the roadmap’s implementation, supported by subcommittees for the private sector and development partners. Coordination with regional entities such as PIFS ensures alignment with Pacific-wide strategies.

Implementation notes

The roadmap is designed to be adaptive: reviewed periodically to ensure relevance and alignment with technological and economic changes. It emphasises collaboration, not only across government ministries but also between the public and private sectors, donors, and regional institutions.