AMMAN — A recent study titled “e-Trade
Readiness Assessment in Jordan” views e-commerce as an important opportunity to
address some of the main challenges facing the
Jordanian economy, especially
after the pandemic, according to Al Ghad.
اضافة اعلان
The study was carried out with the support of the
“Trade for Employment” project, implemented by the
German Agency for International Cooperation (GIZ), on behalf of the German Federal Ministry of
Economic Cooperation and Development and the Kingdom of the Netherlands.
The study stated that the current credit system in
the Kingdom does not provide the support that startups need to establish,
develop and engage in e-commerce.
According to the study, there are three main factors that can stimulate
digital growth in Jordan; youth technology professionals, information, and
communication technology (ICT), and Jordan’s strategic location between East
and West, according to the study.
“The state of e-commerce in Jordan is “relatively
advanced”, and has an average level of readiness on the
UNCTAD B2C e-commerce
index,” stated the study.
The study stated that Jordan has a national
e-commerce strategy, which was approved in 2008, but it has not been
implemented due to lack of a comprehensive e-commerce ecosystem, shortage of
human and financial resources and insufficient mechanisms, whereas today,
Jordan is able to provide a conducive environment for e-commerce to thrive.
National plans and policies call for the development
of a strategic roadmap to enhance
e-commerce, enhance online trading activities
and make it an effective tool for exports growth, stated the study, and while
the volume of online transactions is increasing, there is limited statistical
data on the volume of e-commerce, therefore several initiatives have been put
in place to accelerate digital transformation.
The study indicated that Jordan is a pioneer in
developing ICT infrastructure in the
Middle East and North Africa region, and
that ICT has been a driver of economic growth in general and in e-commerce in
particular, especially that the sector has support in Jordan through 3G and 4G
networks, and 5G network is expected to be available by 2023.
The study indicated that the Jordanian legal and regulatory frameworks do not provide the necessary support for the development of e-commerce.
However, the study stated that there are big
internet and mobile connectivity disparities between urban and rural areas,
which adversely affects the growth of start-ups outside main cities.
Also, the postal system consists of a public postal
operator and several private postal operators with local and international
licenses, but the quality and efficiency of the latter is superior to that
provided by
Jordan Post Company.
“While Jordanian businesses and consumers prefer
traditional cash payment methods, the
Central Bank of Jordan (CBJ) has made
substantial efforts to shift towards electronic payments, and remarkable
progress has been made in this regard,” the study stated.
Over the past two years, the CBJ managed and
improved various aspects of financial transactions, and implemented a series of
measures to protect the economy and society from the impact of the pandemic,
which led to a significant increase in electronic transactions in 2020.
The study indicated that the Jordanian legal and
regulatory frameworks do not provide the necessary support for the development
of e-commerce, especially with regard to adequate protection for small and
medium-sized companies and consumers, but added that the CBJ had introduced
many reforms and policies to improve access to credit and financial
opportunities for all segments.
Loans from licensed banks do not serve the needs of
entrepreneurs and SMEs, the study noted, and interest rates offered by banks
remain very high for project owners, despite reduced interest rates offered by
the Central Bank.
The study concluded by stating that although there are
initiatives aimed at providing financial support to SMEs,
entrepreneurs are not
always aware of these initiatives and lack the knowledge to assess their
funding needs, especially in relation to e-commerce.
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