Pilot implementation project on Epayment System For Ethiopia Proposal

1
Pilot implementation project on Epayment System
For EthiopiaProposal

• Dawit Bekele
• Addis Ababa University
• Forum on ICTs, Trade and Economic Growth
• Launch of the African ICTs, Trade and Economic
  Growth Initiative
• Addis Ababa, 14-16 March 2006

2
Introduction

• Internet is in Ethiopia for the last 9 years
• In the first years, there were many hopes that
  E-commerce would develop quickly
• However, the development of E-commerce has been
  very limited
• This has highly limited the use of the increasing
  Internet infrastructure
• Once again, we are becoming mere consumers, which
  will broaden our trade deficit
• We should ask why?
• And then, address the issue

3
The growth of E-commerce

• B2C e-commerce estimates for the United States
  and Europe
• Source OCDE

4
Why E-commerce has not developed in Ethiopia?

• No local E-commerce site within Ethiopia
• www.ethionet.et, others
• Lack of need?
• Buying goods on-line
• Books on-line
• On-line supermarket
• On-line everything
• Paying bills on-line
• Utilities (Water, Electricity, Telephone)
• Taxes (eg. Kebele)

5
Why E-commerce has not developed?

• Lack of infrastructure?
• Internet is growing
• Number of telephones has reached 1 Million
• No more waiting list mobile phone
• DDN, ISDN, Broadband multimedia
• Cost?
• Lack of regulatory framework?
• Recognition of contracts?
• Digital signature
• Taxation problems?
• Lack of E-payment system?
• There is currently no way to exchange payment
  on-line between the customer and the merchant

6
Vision

• Establish a secure, affordable and open
  E-payment system for Ethiopia before the end of
  the Ethiopian Millennium

7
Follow-up proposal for AAU-VarsityNet

• Just do it Nii Quaynor
• I propose to follow-up on AAU VaristyNet with a
  project for the development of a working
  E-payment system for Ethiopia
• The objective of this project will be to develop
  a system that will enable B2C and C2C E-payment
  transactions within Ethiopia
• This project will be implemented by the UNECA,
  the AAU, the private sector, the Diaspora and
  other concerned parties

8
The project

• Objective
• To create an enabling environment for the
  development of E-commerce through the development
  of an E-payment system
• Goal
• Develop a system that would enable Ethiopians to
• Buy services and products over the internet or
  using telephones with full security and at
  affordable cost
• Have an alternative to cash that has limited
  overhead and acceptable transaction fee
• Use the Mobile Phone as the main platform for
  payment transactions
• Target applications
• Bill payments
• On-line or telephone purchase
• Timeline 1 year

9
Activities

• Pursue RD on the payment system including the
  software, the hardware, additional equipment,
  procedures and security
• Establishment of partnership
• Establishment of the E-payment centre
• Acquisition of the equipment
• Deployment and testing
• Launching

10
Challenges ahead

• Technical
• Security,
• Infrastructure
• Telecom (SMS, GPRS, )
• Financial
• Partnership (Private sector, Banks, )
• Legal and regulatory
• Financial law, legality of electronic contracts,
  ..
• Cultural
• Cash culture, trust,
• Bureaucratic
• Eg. Billing

11
Conclusion

• Ethiopia is lagging behind in E-commerce, even
  compared to other African countries
• If Ethiopians cant do E-commerce within their
  country, it is very unlikely that they can do
  with the rest of the world
• This is marginalizing the country from the world
  trade
• This will have catastrophic effect on Ethiopia as
  globalization is inevitable
• The country is also losing many opportunities
• This project can be the beginning of a long
  journey of the Ethiopian E-commerce

12
Vision

• Establish a secure, affordable and open
  E-payment system for Ethiopia before the end of
  the Ethiopian Millennium
• Thank you