Iraqi minister of communication,
Naeem Al-Rubaie, speaking during the high-level event on e-commerce and the
digital economy in Baghdad on 28 July
Iraq is laying the
foundations for e-commerce as it rebuilds its infrastructure after years of
violence, government officials said during a high-level dialogue on e-commerce
and the digital economy on 28 July in Baghdad.
The event kickstarted
weeklong consultations that are part of UNCTAD’s assessment of the country’s
readiness to engage in e-commerce, the first such exercise in a non-least
developed country.
Nearly 100 people drawn from
Iraq’s public and private sectors exchanged views on how to overcome the
challenges that hinder e-commerce in the war-affected country.
“We have to build trust
among consumers and create an enabling legal environment,” minister of
communication, Naeem Al-Rubaie, said.
He emphasized the need for
fitting legal frameworks and legislation to regulate e-commerce and protect the
rights of online sellers and buyers.
Naeem Al-Rubaie
Iraqi minister of
communication, Naeem Al-Rubaie, speaking during the high-level event on
e-commerce and the digital economy in Baghdad on 28 July
Hurdles
and opportunities
“We are pleased to help Iraq
assess hurdles and opportunities in the e-commerce sector as it embarks on
national reforms to harness ICT for its reconstruction,” UNCTAD’s director of
technology and logistics, Shamika N. Sirimanne, said.
The UNCTAD assessment will
provide a roadmap for developing e-commerce in the country and complement the
government’s initiative to upgrade ICT infrastructure, build digital trust by
improving cybersecurity and support e-government.
The assessment builds on a
survey recently conducted among a sample of public and private sector
respondents.
The survey revealed the need
to work on areas such as e-payment, ICT infrastructure, regulatory frameworks
and the logistics system to create a conducive environment for e-commerce in
Iraq.
Decades of conflict have
ruined the infrastructure needed for e-commerce to flourish in Iraq.
Telecommunications infrastructure is worst hit.
Also, Iraq has low rates of
technological literacy and lacks a coherent national strategy, regulations and
investments needed to participate in the digital economy.
Yet, with 60% of the
population under 25, Iraq has an enormous untapped potential of using
e-commerce for development.
Higher rates of smartphone
usage, higher internet access and higher competition between ICT providers
would enhance e-commerce in Iraq, most survey respondents said.
In addition, solutions for
safe and easy e-payment are highly needed in Iraq. The most common payment
methods are cash-on-delivery and bank transfer, with limited credit card use.
E-payment solutions are
needed to create a conducive environment for e-commerce, 89% of the respondents
from the public sector said.
Iraqis are also concerned
about regulation. More than 70% of the respondents expressed strong approval
for regulations on privacy, consumer protection and cybercrime to enhance trust
in e-commerce.
They also noted that
logistical services required for e-commerce are inadequate, with more than 60%
of them expressing the need for easier customs clearance, electronic shipment
tracking and a good local shipping network.
Eighteen assessments done
Iraq is the latest country
to benefit from UNCTAD’s eTrade Readiness Assessment programme that helps
countries to identify the challenges and opportunities associated with
e-commerce and put in place the right strategies and interventions.
The assessment to be
finalized in December is funded by the International Islamic Trade Finance
Corporation, through its Aid for Trade Initiative for the Arab States
programme, and implemented with the Universal Postal Union under the auspices
of Iraqi ministries of communication and commerce.
Over the past three years,
UNCTAD has conducted 18 e-trade readiness assessments and another seven are
ongoing.
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