E-commerce sector can be an important sector in building a new Bangladesh on the basis of non-discrimination and fairness in the concept of Bangladesh 2.0. Through this sector, it is possible to reduce the urban-rural disparity and fully utilize talented human resources and their potential. We have enough proof of this. Even sitting in the village, a young person can deliver his products to the consumers all over the country through online based e-commerce. Especially outside Dhaka, the number of agriculture-based e-commerce initiatives is increasing. Meanwhile, the sector is playing a role in the progress of the national economy by developingdomestic industries, creating entrepreneurship and creating employment opportunities. However, some significant challenges remain in the e-commerce sector.
E-commerce activities are completely dependent on the Internet. It is important to ensure high-speed internet everywhere in the city or village. Removing barriers to access to high-speed internet connections will create many entrepreneurs in villages and towns. Also access to internet connectivity at affordable cost will further accelerate e-commerce business.
It should also be ensured that e-commerce entrepreneurs get bank loans on easy terms. As a result, e-commerce entrepreneurs can take their business further. E-commerce entrepreneurs were the worst affected by the internet blackout last month. The e-commerce business was at a complete standstill. In view of these, it is necessary to give them low interest loans and extend the repayment period of bank loans considering the losses. Apart from this, VAT and tax related policies related to e-commerce sector should be made simple and understandable.
Future plans and necessary steps for e-commerce sector:
I personally have long experience in e-commerce sector. Managed to grow online food delivery app Food Panda from just an idea to a successful startup. We want to use this experience to take the country's e-commerce sector to a larger scale. At present, I am serving as the Vice President of the Executive Committee of E-Commerce Association of Bangladesh - ICAB. Here are some plans for the development of e-commerce sector.
There are plans to create a full-fledged startup academy. Entrepreneurs who are interested in working with startups will get advice from local and foreign venture capital (VC) and angel investors on fund formation, crowd funding, business scaling, fundraising from various competitions and how to communicate with investors through this academy.
E-CAB plans to provide training to small and medium entrepreneurs (MMEs) in the e-commerce sector to enhance their skills in logistics management, digital marketing, inventory management, crowd funding, data analysis, etc. for business expansion. Apart from this, extensive work can be done on digital signature both at customer and entrepreneur level for the development of e-commerce sector.
Policy support and government action:
E-commerce is the only sector that can ensure a 'level playing field' in business. This requires readily available and uninterrupted internet connection. The interim government has some recommendations to promote the e-commerce sector in Bangladesh.
Firstly: uninterrupted internet connection is essential. The basis of e-commerce activities is the easy access of the customer to the Internet. E-commerce operations cannot be successful without affordable high-speed internet. It is time to declare the internet a 'public utility', so that it never shuts down.
Secondly: special emphasis should be placed on the use of smartphones to ensure digital inclusion for all. Subsidy should be provided for low income people along with reduction in duty on smartphone import and local production.
Thirdly: digital transactions should be encouraged by reducing reliance on cash. Subsidies should be given to consumers and traders if necessary.
Fourth: online small businesses and restaurants are the backbone of the e-commerce system. Interest-free and collateral-free loans to such businesses can play a positive role in the national economy.
Fifth: mentorship system, improved digital infrastructure, ease of capital market listing policy and tax incentives are essential to develop startup culture. Care should also be taken that decisions on government assistance are not made on political grounds.
By taking these steps, we can make the country's e-commerce sector stronger and more dynamic.
Digital Commerce Act: The Ministry of Commerce finalized the Digital Commerce Authority Act 2023 during the previous government. However, there is an opportunity to regulate this sector through appropriate use of existing laws and policies in e-commerce. Hence this Act may be considered for re-examination. Foreign investors should regain confidence in the development of the e-commerce sector. According to the 'Bangladesh Startup Investment Report 2024' by Lightcastle Partners, only 19 million US dollars of investment came into the country in the first half of 2024, which is 57 percent less than the previous year. The transition will have to overcome tax complexities, policy uncertainties and trade logistics and structural weaknesses. Increase productivity and develop skills and innovation. Read: https://www.youtube.com/watch?v=kuHnDAyjHMk
Above all, we expect a business-friendly environment and supportive policies from the interim government, which will attract foreign investors.
