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E-GATE: Elevating Global Access Through E-commerce in Central Asia

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  • What is E-GATE?

    Elevate Global Access Through E-Commerce (E-GATE) in Central Asia is a World Bank program launched in 2023, funded by the UK Foreign, Commonwealth & Development Office (UK FCDO) under the Effective Governance for Economic Development (EGED) program. E-GATE seeks to alleviate poverty by opening new opportunities and broadening market access for Central Asian producers and smaller business entities, and assessing whether e-commerce can succeed in the region, especially through its distributional impact on market access, income generation and job creation.

    E-commerce is a driver of economic development in our globalized world, bringing traditional commerce online and simplifying trade. In 2024, global B2C e-commerce sales hit $6 trillion, surpassing the GDPs of Germany and Japan, while B2B sales reached $20 trillion, roughly equal to the GDPs of the USA or China.

    E-GATE facilitates e-commerce growth in the Kyrgyz Republic, Tajikistan, and Uzbekistan, working with governments, business associations, and the private sector by:

    1. Developing an e-commerce readiness index for Central Asia.
    2. Onboarding local micro, small and medium enterprises (MSMEs) to global B2B e-commerce marketplaces.
    3. Providing capacity-building on business intelligence, e-commerce intelligence, and onboarding MSMEs to international e-commerce marketplaces.
    4. Conducting awareness-raising events to promote local producers worldwide and attract global e-commerce players and potential investors to the region.
    5. Measuring e-commerce volume through the World Bank “Listening 2” surveys.
    6. Providing analytical help in updating legal documents related to the regulation of e-commerce in the countries of Central Asia.
    7. Generating robust evidence through impact evaluations, including randomized controlled trials and value chain analysis.

    Why Is E-GATE Needed?

    Geographical Barriers: Central Asia's landlocked and remote location restricts global market access, especially to seaports.

    Youth Unemployment: The region’s young population offers enormous human capital potential but only if these countries’ youth can find employment.

    Economic Dependence: Central Asia countries rely on Commonwealth of Independent States- CIS countries for trades making the region vulnerable to external shocks. Expanding e-commerce beyond CIS countries can diversify value chains and strengthen economic resilience.

    E-GATE’s Impact

    Revenue Growth: Local MSMEs supported by E-GATE gained over $21 million in negotiated or contracted deals between May and November of 2024.

    Jobs Creation: On average, 15% of local MSMEs supported by E-GATE created new jobs, 70% of which were filled by women.

    Access to New Markets: Local MSMEs supported by E-GATE gained access to over 70 new markets around the world compared to 19 traditional markets they had before joining the program.

    Regulatory Changes: E-GATE advocates for regulatory changes to create a healthy e-commerce environment including updating consumer protection legislation, modernizing postal regulations, and other key policy adjustments.

    E-commerce Measurement Enhancement: E-GATE supports the development of e-commerce measurement methodology together with international partners for Central Asia countries. Using the “Listening 2” (L2) tool, E-GATE surveyed over 1,500 households in the Kyrgyz Republic and Tajikistan in 2023-2024, showing that the vast majority of households shop online by placing orders through social media or messenger apps rather than through marketplaces.

     

  • Kyrgyz Republic

    In the Kyrgyz Republic, the E-GATE initiative is already yielding tangible results with 65% of participating firms actively engaged in negotiations, totaling $100 thousand in deals. This momentum extends to global market access, with businesses unlocking over 59 new export destinations, evidenced by a surge in international inquiries and website traffic. Moreover, 23% of firms have created new jobs, 90% of which were filled by women, while 34% expanded the roles of existing employees, demonstrating a significant boost to local employment and gender equality.

    E-GATE has spearheaded the development of a comprehensive E-Commerce Consumer Protection Law. This draft legislation has been meticulously crafted to meet international standards and aims to foster greater consumer trust in the rapidly evolving digital marketplace.

    Tajikistan

    In Tajikistan, E-GATE's impact is marked by substantial deal-making, totaling over $16 million in secured deals, with 73% of participating firms currently in active negotiations. While export diversification shows promise, with 42 new markets opened, only one firm has closed a deal on a single export destination to date. On the employment front, 15% of firms created new jobs, with women filling 30% of these positions, while a significant 70% reassigned roles and another 15% opted for outsourcing, reflecting a dynamic shift in workforce strategies.

    E-GATE has prepared a proposed legal reform for Tajikistan's postal service system, aiming to modernize and transform the sector with the objective of stimulating competition and improving efficiency in e-commerce logistics.

    Uzbekistan

    In Uzbekistan, E-GATE's efforts have translated into $3 million in secured or negotiated deals, with 21% of firms successfully closing at least one deal. To date, 28% of participating firms are engaged in active negotiations, and exports have reached 9 countries. The initiative has also opened 42 new markets for Uzbek businesses. Moreover, 10% of firms created new positions, with a remarkable 80% of these filled by women. And37% of businesses supported by E-GATE reassigned existing roles to adapt to new e-commerce operations, fostering skill development in digital trade. Additionally, 5% engaged in outsourcing, showcasing a strategic approach to workforce development.

    E-GATE's support in strengthening Uzbekistan's electronic commerce law aims to enhance consumer trust, a critical factor for the growth of the digital economy.
     

  • Government

    Kyrgyz Republic: Ministry of Economy and Commerce, Kyrgyz Post, National Statistics Committee.

    Tajikistan: Agency of Innovations, Ministry of Industry, Ministry of Economy, Smart City Dushanbe.

    Uzbekistan: Ministry of Digital Technologies, National Agency for Prospective Projects, Ministry of Investments and Foreign Trade.

    Business Associations

    Kyrgyz Republic:  E-commerce Association.

    Tajikistan: National Association of Small and Medium Businesses, Association of E-commerce.

    Uzbekistan: Association of Sellers, E-commerce Association, FinTech Association.

    Development Partners

    USAID, ITC, UNCTAD, UPU, IFC, CIPE.