WT/GC/W/905/Rev.1  
 
18 January 2024  
(24-0403) Page: 1/5 
General Council  Original: English  
 
  
WORK PROGRAMME ON ELECTRONIC COMMERCE  
COMMUNICATION FROM DJIBOUTI ON BEHALF OF THE LDC GROUP  
Revision1 
The following communication , dated 12 January 2024,  is being circulated at the request of the 
delegation of Djibouti, on behalf of the LDC Group.  
 
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1  INTRODUCTION  
1.1.  The purpose of th is revised  submission is to foster constructive engagement under the WTO  
e-commerce Work Programme  and WTO's collaboration with other organisations and to provide 
inputs into the development dimension of the Work Programme, as well as any appropriate elements 
for consideration at MC13.  The contribution intends to ensure that engagement specifically addresses 
least d eveloped country (LDC) priorities. The submission also provides information on progress 
observed in LDCs.  
2  LDC E -COMMERCE CAPACITY LANDSCAPE  
2.1.  The unyielding challenge of access to electricity remains significant in many LDCs. Globally, 
more than 760 million people who have no energy access reside in LDCs.2 This represents a 56.3% 
electrification rate, compared with the 91.4% global average.3 This problem is more serious in rural 
areas, as only 43.9% of the rural population ha ve access to power. Regarding internet access, less 
than 11% of the population in Europe have no access to the internet , while LDCs in the aggregate 
have over 17% of their inhabitants reportedly without internet access.4 The above challenges are 
exacerbated by a further challenge of  LDC access to new technologies.  
Access to technology and technology divide  
2.2.  Regarding urban  versus  rural access to technology and the technology divide, 13% of LDC rural 
population s have no access to any mobile network, and a meagre 42% are connected online with a 
mobile device.5 Further, on average , the fixed broadband monthly price in high income cou ntries 
stands at 1.1% of per capita  GNI, low and middle income countries 4.8% and LDCs the highest at 
 
1 This revision updates data and makes technical rectifications to WT/GC/W/905 . This revision replaces 
WT/GC/W/905 . 
2 https://www.iea.org/topics/energy -access   
3 data.worldbank.org   
4 ITU Facts and Figures 2023;  It is important to note that even where internet is accessi ble this does not 
equate to the only basis for engaging in e -commerce. Smartphone prices are extremely high in the LDCs, 
hampering Internet take -up. As an example, affordability rate of smartphone in Cambodia stands at 52% while 
in Bangladesh at 23% afford ability level. ITU (2021) Connectivity in the Least Developed Countries Status 
report 2021  ITU, Geneva.  
5 ITU (2023) Measuring digital development Facts and Figures: Focus on Least Developed Countries , 
March  2023. WT/GC/W/905/Rev.1  
 
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  16.3%.6 Broadband internet user penetration is projected to reach 75% globally by 2025, while 
LDCs are at 31% relative to 70% in other developing countri es.7  
2.3.  With respect of affordability of mobile internet, on average , the price of the mobile cellular 
low-usage basket in high income countries is 0.4% of GNI per capita , low and middle income 
countries at 1.5% and LDCs at 4.3%.8 Overall , 24% of the popul ation in LDCs have no access to a 
mobile broadband network despite the UN SDG goal 9 target to increase access to ICTs and  to strive 
to provide universal and affordable access to the Internet  by 2020.9 All this attests to digital 
infrastructure needs in many LDCs, which in turn render new technologies largely unaffordable and 
difficult to access.10 Consequently, unequal global access to products and services enabled by new 
technologies occurs. Across several emerging digital technologies, ranging from bloc kchain, 
3D printing, Internet of Things, 5G mobile broadband, cloud computing, automation and robotics to 
artificial intelligence (AI) and data analytics, LDCs are trailing significantly behind other categories 
of countries.11  
Online market share  
2.4.  LDC shar e of their population shopping online is averaging around 2%.12 By the same token, 
when it comes to business to consumer (B2C) e -commerce, LDCs trend around an average of 20%, 
whereas other developing countries are slightly above 50% and developed countrie s at around 80%. 
This highlights the extent of capacity gaps while at the same time the need for a deliberate focus on 
the case of LDCs.  
2.5.  The earlier decline in ODA to LDCs is troubling , in particular, in relation to ICT and technological 
research and devel opment. In this regard, in 2017, only 3.78% of ODA commitments to developing 
countries was reported under sectors associated with science, technology and innovation as follows: 
post-secondary education 2.96%; research and scientific institutions 0.59%; ICT  0.09%; 
technological research and development 0.04 per cent.13  
Digital and talent gap  
2.6.  With advanced digital know -how becoming critical for employment, a  "talent gap" for LDC 
employment with advanced digital competencies is increasing. The growing need for ICT -qualified 
personnel and consumers in many LDCs cannot be overemphasized, albeit compounded by the 
challenges presented in this submission . These have the effect of feedin g the digital divide as 
reflected by the persistent need to boost knowledge levels.  
2.7.  Meaningful engagement in the global digital trade revolution, where e -commerce thrives, 
requires specific and complementary digital and innovat ive tools  that serve as sour ces for 
productivity and growth for LDCs.14 Consequently, to address skill gaps and lagging  technological 
development in LDCs, digital policies will be critical to provide an enabling environment for 
investment in digital skills.15 Consequently, a comprehe nsive framework aimed at promoting an 
enterprise enabling environment and development of human productive capabilities, while creating 
more digital  jobs and commerce would be useful.16 Overall, to ensure that LDCs are not left behind, 
 
6 https://www.itu.int/en/ITU -D/Statistics/Dashboards/Pages/IPB.aspx   
7 ITU and UNESCO (2020) State of Broadband Report 2020: Tackling digital in equalities – A decade for 
action  ITU, Geneva.  
8 https://www.itu.int/en/ITU -D/Statistics/Dashboards/Pages/IPB.aspx   
9 ITU (2021) Connectivity  in the Least Developed Countries: Status report 2021 – Highlights . 
10 Only Bangladesh and Bhutan are determined to have achieved SDG Target 9.c. See ITU (2021) 
Connectivity in the Least Developed Countries Status report 2021  ITU, Geneva.  
11 UNCTAD (2019) Digital Economy Report 2019 - Value Creation and Capture: Implications for 
Developing Countries United Nations, Geneva.  
12 ITU (2021) Connectivity in the Least Developed Countries . 
13 UNCTAD (2021) DIGITAL ECONOMY REPORT - Cross -border data flows and d evelopment:  For whom 
the data flow  United Nations, Geneva.  
14 ILO (2022) Present and future of work in the Least Developed Countries  International Labor 
Organisation, Geneva . 
15 ILO (2021) Changing demand for skills in digital economies and societies : Litera ture review and case 
studies from low - and middle -income countries  International Labor Organisation, Geneva.  
16 Ibid. WT/GC/W/905/Rev.1  
 
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  development partners should contribute to supporting digital infrastructure and reducing 
technological gaps in LDCs.  
Infrastructural and supply capacity  
2.8.  As Members are aware, many LDCs require significant e -commerce infrastructural 
development. This, among others, ranges from  limited internet access in rural/remote areas and 
costly access to fixed and mobile -broadband Internet, to inadequate facilities for physical delivery 
of online purchases. In terms of e -commerce supply capacity, LDCs need to increase their share of 
ICT go ods and services and be able to exploit digital technologies. Access to networks, data and 
economies of scale and scope are dominated by concentrated market power by a few entities.   
2.9.  These may imply high entry costs for many LDCs in e -commerce markets. As a result, LDC 
companies largely do not yet feature in 100 global digital platforms by market capitalization. Lack 
of finance for research and development in many LDCs, inter alia , explains some limitations and 
deficits regarding industrial technologies for  production.17 In this context, the intricate link between 
the extent of supply capacity and access to finance cannot be overemphasised.  
Legal and regulatory capacity  
2.10.   To play a meaningful role in e -commerce, LDCs must strengthen their own legal and 
regulatory frameworks . Improved regulatory frameworks, where needed, in e -commerce in turn 
imply some improvements in institutional frameworks. Building the capacity of LDCs to rationalize 
regulatory prerequisites to beneficially take part in the global e -commerce marketplace is therefore 
of crucial importance.  
2.11.   LDCs may target their own e -commerce policies and regulations on a customized basis. 
However, regulation should not hinder the development of LDC entrepreneurs, households and 
government players in the platform.  
WTO e -commerce moratorium and internal taxation  
2.12.   In respect of e -commerce moratorium  and issues on internal taxation , several studies on 
these matters have provided varied information particularly in light of their divergent methodological 
assumptions. What is cle ar is that the moratorium is on customs duties, not internal taxation.   
2.13.   Mechanisms on the utilisation of customs duties or  of internal taxation must be surveyed.  
Nevertheless, there is a need for an LDC specific study that provides technical assessments of  
implications of the moratorium based on unique attributes of LDCs including about LDC own 
mechanisms or lack thereof.  Key will also be the technologies needed in this area.  At least there 
should be analysis in the context of  LDC value -added tax systems, w here possible.   
3  MEASURES BY LDCS TOWARD HARNESSING THE VALUE OF E -COMMERCE  
3.1.  Notwithstanding the above, there are areas where LDCs have progressed, although at a slow 
pace. Some LDCs have conducted e -commerce readiness assessments registering increases in th e 
number of internet users, postal reliability, and secure servers.18 From the e -commerce readiness 
assessments, opportunities in e -commerce for LDCs include strategy formulation, ICT infrastructure 
and services, trade logistics and trade facilitation, pay ment solutions, legal and regulatory 
frameworks, e -commerce skills development, and access to financing.19 Support to LDC assessments 
has been uneven and must be improved, leaving no LDC behind.  
3.2.  LDCs are making efforts to actualize the economic developmen t promise of e -commerce.  This 
includes synchronization of postal and customs interface, and building capacity for micro, medium, 
and small -scale enterprises (MSMEs) to carry out small parcel e -commerce. The net result has been 
an increase  in the number of registrants on e -commerce platforms and creation of jobs including for 
 
17 UNCTAD (2021) Technology and Innovation Report 2021: Catching technological waves – Innovation 
with equity  UN, Geneva.  
18 Guinea, Ethiopia and Djibouti fall in this category of countries. See UNCTAD (2022) E-Commerce and 
the Digital Economy in LDCs: At Breaking Point in COVID -19 Times UNCTAD Geneva.  
19 Ibid. WT/GC/W/905/Rev.1  
 
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  women. Furthermore, within their available capacity , LDCs have further invested in digital skills 
development, and MSMES incubation on business digitization inclusive of train ing on digital 
technologies. These developments all took place in the context of a multi -sector and ecosystem 
context.20  
3.3.  Further , selected developments in LDCs are notable. These include gradual development of the 
ICT sector, among others, through increas ing international internet bandwidth; fostering internet 
connectivity; higher mobile and smart phone penetration rates; addressing the needs of the 
e-commerce ready population; access to financial service and e -payment service providers; and 
putting in pla ce key public policies covering trade development and ICT development.21  
3.4.  In respect of adoption of appropriate e -commerce related legislation, LDCs are variably making 
progress. Out of 46 LDCs22, e-commerce related legislative developments in term of legi slation 
enacted are as follows: 81% on electronic transactions; 59% on consumer protection; 71% on 
privacy and data protection; and  80% on cybercrime.23 However, legislation alone is not a panacea 
for securing the necessary conditions for expanding LDC par ticipation in e -commerce.  
4  CONCLUSION  
4.1.  In view of the foregoing, many LDCs remain on the periphery of global e -commerce markets. 
Various levels of progress are evident, but these are reflective of areas in which targeted capacity 
building and technical assi stance interventions are required including beyond those identified in this 
submission.   
4.2.  It is equally important to underline the fact that LDCs have been making best efforts within the 
limitations of their resources to advance the e -commerce agenda. These  efforts are notable for 
building relevant legislation and policies, and digital know -how in e -commerce related tools and 
infrastructure.  ICT and e -commerce advanced developing countries might also create partnerships 
and provide infrastructure, technologi cal and technical expertise in LDC urban and rural areas.  
4.3.  Many LDCs are experiencing significant ICT, technology, research and development challenges, 
exacerbated by a steep dec line in ODA. Concurrent needs in digital know -how and skills must be 
met to mov e many LDCs from the periphery of e -commerce and the 4th industrial revolution , which 
is also evolving . Moreover, e -commerce backbone infrastructure is in short supply in many LDCs. As 
noted earlier, coupled with persistent needs in electricity accessibili ty, the ability of LDCs to leverage 
digital technologies in the context of e -commerce is also limited.  
4.4.  In the context of the WTO Work Programme on Electronic C ommerce, the LDC point of 
departure is qualitatively distinct from that of other Members and muc h more than creation of 
multilateral rules on e -commerce.  Within the framework of the WTO Work Programme, LDC -oriented 
deliverables should be prioritised.  On e-commerce tariffs and digital taxation, there is need for an 
LDC-specific study that provides for  technical assessments of the implications of the WTO 
moratorium taking into account specific attributes of LDCs. This includes the mechanisms within 
LDCs and possible technologies available globally.  The implications should include not only impact 
on reve nue gain to the government, but also the costs of any impact of imposing customs duties 
and internal taxes on costs carried over to LDC entrepreneurs and consumers, which are increasingly 
relying on the platform to provide or access products, services and enter diaspora or new markets.  
 
20 Annette Ssemuwemba (2023) "BUILDING RESILIENCE After the pandemic storms, digital trade offers 
LDCs rays of sunshine ". Available at https://oecd -development -matters.org/2023/06/13/after -the-pandemic -
storms -digital -trade -offers -ldcs-rays-of-sunshine/  Accessed on 21 July 2023 . 
21 UNESCAP (2019) Leveraging e -commerce for graduation of least developed countries  UN, Bangkok . 
22 Noting that Bhutan has just graduate d from LDC status.  
23 UNCTAD (2023) Global Cyberlaw Tracker: Summary Adoption of E -Commerce Legislation Worldwide 
Available  at: https://unctad. org/topic/ecommerce -and-digital -economy/ecommerce -law-reform/global -
cyberlaw -tracker  Accessed on 27 December 2023.  WT/GC/W/905/Rev.1  
 
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  4.5.  We recommend that the WTO consider setting up a mechanism of information and 
collaborations with other institutions, specific to LDC participation in e -commerce and aspects that 
may assist in closing gaps.  This should also i nclude up -to-date information on LDC systems in 
relation to the areas mentioned in this submission.  A road map within the Work Programme could 
also be considered that will help LDCs track the evolution of progress in the Work Programme both 
within the remi t of the WTO 's role and in collaboration with other institutions.   
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