5. Conclusions and recommendations

community of the potential of

Local content development could

e commerce and ICTs in general. The

benefit from support, through special

diffusion of successful e business

tax and credit incentives for the

models, development of pilot projects,

development of local websites in

and a toolkit on how to set up an e 

economic sectors in which Ethiopia

business will help to improve the

has competitive advantages, such as

prospects for e commerce

agriculture, tourism, etc. The

development in the country.

production of local content and a

national e commerce sector could be

Support for electronic transactions in

enhanced by establishing incubators

general needs to be urgently

in different geographical areas with

accelerated in Ethiopia before the

the adequate conditions and with the

benefits of e commerce can be seen.

cooperation of research and

This could be in through the

development units of private sector,

introduction of GSM transactions,

universities, and public institutions.

credit cards and prepaid/smart cards.

This would include making the

5.6.2 E government

necessary legislative and institutional

Government should lead by example

reforms to enable credit card

through its use of ICTs to carry out its

payments over websites and could be

public service functions. Government

developed through an alliance of

as an active ICT user would

private and public sector interests the

simultaneously increase its own

use of e commerce prepaid cards (a

efficiency and demonstrate the gains

concept similar to the successful

that can be realized through new

model used in cellular mobile

services).

information and communication

technology.

Small scale services and products can

often more adequately meet local

An e government initiative could

needs, but are unable to attract capital

include establishing a well developed

because of the small sums required.

government site. This would build on

Given the scarcity of venture capital

existing sites developed by various

available in Ethiopia for local small and

ministries by providing appropriate

medium size enterprises (SME) with

links and more consistency. The

e commerce initiatives, the

`electronic parliament' project could

Government and local financial

also be part of this programme.

institutions should consider the

possibility of establishing a fund for

Some other areas in which the

specific e commerce initiatives.

Ethiopian Government can pursue this

leadership function are through:

Inefficient shipping/clearing and

delivery of goods will undermine the

a)

The establishment of a

competitiveness of many e commerce

transparent electronic procu 

initiatives (as it does for normal

rement system available to all

businesses). Given it is a landlocked

interested parties on the

territory with a very undeveloped

Internet;

transport infrastructure, Ethiopia

probably suffers more than many

b)

The deployment of intranets and

other low income nations from the

networked team practices aiming

transport barrier. One action to

at the assimilation of modern

improve the situation could be to

work practices typical of

promote cooperation among e 

networked learning organiza 

commerce companies to achieve

tions;

economies of scale in the delivery of

their products. Furthermore, it is

c) The use of the Internet in public

important to seek lower costs and

services that depend heavily on

increased efficiency among customs

information for policy making

clearance, shipping and transport

such as employment, transporta 

companies.

tion, and energy.

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