Today.Az » Business » Azerbaijan to increase share of e-trade
22 October 2019 [14:21] - Today.Az

By Azernews

By Leman Mammadova

Azerbaijan aims to increase the share of e-trade in the domestic market, Ramin Guluzade, the Minister of Transport, Communications and High Technologies has said.

He made the remarks at the opening of the second Baku E-Trade Forum (BEF - 2019) on October 21 organized as part of the InnoWeek - Innovation Week.

Guluzade said that the development of an innovative economy is proceeding rapidly in Azerbaijan. “Approved strategic roadmaps for the national economy and key sectors of the economy are being successfully implemented. This, in turn, as in all areas, creates a favorable environment for the development of e-trade,” he said. 

He noted that the internet banking is developing in Azerbaijan, and many public and private companies are operating in the field of logistics. “As a result, e-trade offers many products and services across the country through numerous sites and platforms.”

Guluzade pointed out that the success has been seen in the sale of travel services, tickets and hotel bookings, information technology, clothing and food through e-trade.

“In general, although the dynamics of the development of e-trade in our country is high, our Internet users mainly place orders on well-known foreign e-trade platforms. Our goal is to increase the share of e-trade in the domestic market, while promoting e-trade entering our national products, in foreign markets,” he said.

Referring to the importance of international cooperation in the development of e-trade, Guluzade noted the expansion of cooperation within the framework of the European Commission's initiative to harmonize the digital markets of the Eastern Partnership countries in such areas as the development of legislation for the mutual recognition of e-signatures, cross-border data exchange, and cybersecurity.

“The fact that today the EU institutions are among the partners of the BEF is also a confirmation of this cooperation,” he said.

Delivering a speech, Alim Guliyev, First Deputy Chairman at Central Bank of Azerbaijan, said that in 2018, global retail trade turnover was $24 trillion, of which $3 trillion accounted for e-trade and accounted for 12 percent of turnover.

“The previous figure was 10 percent. By late 2019, e-trade is expected to grow by 21 percent to reach $3.5 trillion, accounting for 14 percent of retail trade,” he noted.

Guliyev added that in the next five years, e-trade is expected to reach $6.5 trillion, accounting for 22 percent of retail trade.

“According to forecasts, by the end of this year, a quarter of the world's population will be a digital buyer. This is about 2 billion people. Estimates show that by 2040, 95 percent of the world's population will be trading in digital payments,” he pointed out.

All sectors of the economy are rapidly electronizing with the application of smart technologies in the society. E-trade is an integral part of society. E-trade has become an effective mechanism for linking different sectors such as finance, real sector and IT, due to the widespread use of new technologies. The e-trade platform further enhances the ability of small and medium-sized enterprises (SMEs) to compete with large corporations. Digitalization provides young people with affordable opportunities to build their own businesses that do not require large financial resources. For this reason, e-trade has become an attractive platform for SMEs.

Later, Orkhan Mammadov, Chairman of the Board of the Agency for Development of SMEs, stressed that the Agency is ready to take an active part in the process of increasing the share of e-trade and to support further initiatives.

The two-day forum, which is organized by the Ministry of Transport, Communications and High Technologies, the European Union and in partnership of PASHA Bank, was attended by representatives of international organizations, government agencies, public organizations, micro, small and medium-sized businesses, investors, experts and startuppers.

The first day of the forum covered four sessions, including “E-Trade Regulatory Policies in Government and Intergovernmental Approach”, “New technological trends in e-trade infrastructure: prospects and threats”, “Online payment systems and digital solutions”  and “Smart” borders: opportunities for trade, tourism and logistics”.

On the second day, trainings will be organized on business models, cybersecurity and data protection, marketing behavior and trends.

BEF, held for the second time in Azerbaijan, is an important platform to discuss the latest innovations and positive trends in the field of e-trade.

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