World Bank Supports Development of Tajikistan’s Emerging E-Commerce Market

On March 1st, Dushanbe played host to ‘Elevating Global Access through E-Commerce (E-GATE)’, a conference organized by the World Bank and the IFC. A first for Tajikistan, its goal was to facilitate knowledge and resource exchange amongst the country’s small and medium enterprises as well as with regional and global players in the e-commerce ecosystem. “Recognizing the pivotal role e-commerce plays in modern economies, the World Bank is actively supporting Tajikistan in its journey to develop appropriate platforms, including E-GATE,” said Ozan Sevimli, World Bank Country Manager for Tajikistan. “The E-GATE program offers Tajik small and medium enterprises highly valuable membership of global B2B e-commerce platforms to access markets unavailable offline, and provide technical support to the government on drafting enabling legislation, and channel global knowledge to Tajik e-sellers through capacity building activities.” The conference attracted e-commerce stakeholders from Tajikistan, Kazakhstan, Kyrgyzstan, Turkmenistan, and Uzbekistan, as well as global e-commerce giants including Amazon and Alibaba. In landlocked Tajikistan, as in the whole of Central Asia, the emergence of e-commerce is proving a powerful tool to tap into global markets for locally made products, modernize traditional supply chains, and foster growth in employment opportunities. To ensure the smooth functioning of E-commerce operations, Tajikistan recently introduced a ‘On Electronic Commerce’ law. According to ECDB, a specialized e-commerce data analytics company (https://ecommercedb.com/markets/tj/all), Tajikistan is currently one of the smaller markets for e-commerce. The predicted revenue for 2024 is $17.1 million but once developed, is expected to increase by 5.4% per annum resulting in a projected market volume of $21.1 million by 2028.

IFC Improves Business Environment in Tajikistan with New e-Services System

As outlined in a press release on the IFC website, a  new online e-system for businesses in Tajikistan developed with IFC support is being launched to help the government increase transparency, reduce its administrative burden, and improve the country's investment climate, the IFC (a member of the World Bank Group) said on December 11th. The IFC has been working with Tajikistan's State Committee on Investment and State Property Management for almost two years to help develop the new e-Services for Business System with support from the government of Switzerland. The new portal consists of: an e-Registry database comprising all existing licenses and permission documents with details of their issuance; an e-Inspection system to enable the planning and conduction of inspections and report results online; and an e-Permit platform to apply for licenses and permission documents. The new online system will help increase the transparency of activities and services provided by state authorities and minimize costs for the private sector to access information, apply for licenses and permits, provide feedback, and report on problems in the work of inspection and licensing bodies. "Simplifying administrative procedures and reducing the state impact on business activities by - among other things - reducing the number of inspections is essential to improve business confidence and attract investment," said Khurshedai Qodir, Deputy Chairperson of the State Committee on Investment and State Property Management. The portal will also enable the committee to have valuable real-time data on the number of inspections conducted and licenses and permits requested and issued. It will also enable monitoring of the extent to which state bodies comply with legal requirements in carrying out their duties. "Developing Tajikistan's private sector without improving the conditions it operates in is practically impossible," said Farukh Sultonov, IFC Country Officer in Tajikistan. "Accessible administrative systems are key to help public authorities cut bureaucracy, reduce costs and time for the private sector, and strengthen the country's investment climate."