Tonga launches strategy for growth of e-commerce [1]
Wednesday, August 24, 2022 - 21:22. Updated on Thursday, December 22, 2022 - 12:56.
While the government is aiming to improve the growth of electronic commerce, to enable more people in Tonga to fully utilize the ICT infrastructure and skills already in place, there is still a long way to go, says Tonga's trade minister, in the first ‘E-Commerce Strategy and Roadmap for Tonga’.
Tonga needs to have in place the necessary frameworks to harness the opportunities of e-commerce trade, the Minister of Trade and Economic Development, Hon. Viliami Uasike Latu, stated in the foreword of the strategy.
By reforming its legislation and investing in e-commerce readiness projects, the government aims to facilitate more online trading between business-to-customer and business-to-business, within Tonga and across its borders.
To help guide this “digital transformation” the government launched its first ‘E-Commerce Strategy and Roadmap for Tonga’ on 19 August in Nuku'alofa.
The strategy proposes a vision of a transformative economy where most Tongan businesses and consumers actively engage in domestic and cross-border electronic commerce.
To achieve its vision, the strategy targets four outcomes:
- more online consumers;
- more online businesses;
- an increasingly banked population and the reduction of cash handling; and
- a digitally literate population
“There is still a long way to go however, to get Tonga digital-ready for these opportunities,” he stated.
The Minister said that a digital transformation of the economy “will require interaction and collaboration amongst leaders in both government, non-government agencies and the private sector. The new E-Commerce Strategy and Roadmap will help to accomplish a shared vision.
Review of relevant legislation
A robust legal and regulatory framework for e-commerce is identified as one of the drivers for e-commerce growth in Tonga and Cabinet has approved for the review of the relevant legislations or bills to facilitate e-commerce.
They believe this will increase confidence for both consumers and suppliers and consequently, encourage more online consumers and business, boosting multiple sectors.
As one of the key measures, the Ministry sets out to establish a National E-Commerce Committee, to ensure continuous implementation of the Strategy
Connectivity, reliability and affordability issues
Meanwhile, the strategy also noted that while access to ICT infrastructure and Services has improved in Tonga since the submarine fiber optic cable system between Tonga and Fiji went live in August 2013, there are still major obstacles for business.
“The clear progress cannot hide the facts that there are still connectivity, reliability and affordability issue[s]. Existing network coverage, speed and latency could be improved to create the basic premises for more businesses to start their online journey.
“Recent investment in satellites technology will help remote communities embrace ICT and create new sources of employment and revenues.
“The issues could be explained by the relatively small size of the Tongan market, making it not profitable for networks and ISPs to invest in extra bandwidth and speed.
“Overall, most stakeholders see the need for a Digital Tonga, and are excited about the development of a digital economy for Tonga, because it means that more people in Tonga will be able to fully utilize the ICT infrastructure and skills that are already in place.
“While there are still connectivity challenges ahead in terms of broadband access and affordability, which will require both investments and regulatory reforms, increased connectivity in Tonga is starting to offer new opportunities.”
Australian project
The CEO for Ministry of Trade and Economic Development, Mrs Distaquaine Tu'ihalamaka and Australian High Commissioner, H.E Rachel Moore, welcomed the launch of the first E-Commerce Strategy & Roadmap for Tonga last week.
The “Strengthening an Inclusive Enabling Environment for e-Commerce in Tonga and Vanuatu” project was funded by the Australian Department of Foreign Affairs and Trade (DFAT) under the E-Commerce Aid-for-Trade Fund (Round II)
The National E-Commerce Strategy and Roamdap for Tonga was prepared by a team composed of Sven Callebaut (Team Leader) from TradeWorthy Ltd., Kathleen Walters (national coordinator), Tony Siamomu'a (Trade Facilitation and Payment expert) and 'Akanesi Katoa (Legal expert).