rtificial intelligence and the use of frontier technologies are already transforming trade and boosting prosperity, particularly for developed, and some developing countries. This ranges from digital exchange of documents, the digitalisation of trade processes and leveraging online platforms to fast-track cross-border trade. The rapid adoption of new technologies will further consolidate the dominance of world trade by developed economies, which currently account for roughly 74% of global trade according to the United Nations Conference on Trade and Development (UNCTAD).
The world’s 44 Least Developed Countries (LDCs), with a population of an estimated 1.4 billion people, are experiencing a different trajectory altogether. According to the World Trade Organization, they account for less than 1% of the world’s merchandise trade. LDCs continue to reel from the relentless onslaught of bad news including increased protectionist barriers. UNCTAD has estimated that tariffs on LDCs will have a devastating consequence, possibly leading to an estimated 54% reduction in exports from the world’s poorest countries.
This dire situation is exacerbated by declining overseas development assistance, making it very difficult for governments in LDCs to navigate this trade environment. Success requires they continue to advocate globally for fairer terms of trade.
At the same time, they need to be more aggressive in addressing matters over which they do have control. Otherwise, the status quo will leave their people in a perpetually disadvantageous situation. Imagine paying three times more than your competitors just to ship a single crate of goods across a border. For millions of entrepreneurs in the world’s LDCs, it is the everyday cost of doing business. Technology offers a way out in reducing these high costs.
Indeed, when the international community gathered in Sevilla for the Fourth International Conference on Financing for Development (FfD4) in July 2025, one truth stood out. Technology is no longer a luxury—it is a prerequisite for effective participation in global trade. The outcome document was clear that unlocking trade opportunities for the world’s 44 LDCs requires bridging infrastructure gaps, building domestic technological capacity, and leveraging science, technology and innovation.
Given the challenges and opportunities, what forms the core elements of an action agenda for LDCs to leverage trade to generate jobs and opportunities for its people?
First, there is a need to pivot to digital solutions which can dramatically reduce trade costs and open new markets. According to the World Bank, paperless customs and single–window systems have been proven to cut clearance times by up to 50%, reducing bureaucracy that stifles commerce. In Benin, automating port procedures reduced processing time from 18 days to just three days. E–commerce platforms, when paired with secure payment systems and targeted training, have shown remarkable potential.
Second, invest in digital infrastructure. Data suggests that LDCs still have a lot of catching up to do on digital infrastructure. The solution is for development partners and the international financial institutions to steer more resources in this area with a substantial, fixed percentage of resources of a country’s portfolio dedicated to boosting digital infrastructure.
Third, focus on value addition and transition away from the export of raw commodities. This in turn requires the human resource capacity to spur innovation and creativity. Boosting investment in research and development can pay rich dividends. According to the World Economic Forum, every LDC invests less than 1% of GDP in research and development, far behind more developed countries while the likes of Korea invests 4%.
Finally, for LDCs to enter the technological age, their private sector must lead the way. This is a real challenge in countries like Burundi where internet penetration is a mere 5% of the population. The average internet penetration for Africa is around 38%. So, in addition to digital infrastructure, support must be provided to micro, small and medium–scale enterprises to benefit from the opportunities provided by technology to boost trade, thereby creating jobs and opportunities. This includes the establishment of incubators to support this business sector; boosting their technological capacities to trade and profile their businesses on digital platforms; and helping them to deliver services created by the digital economy. Rwanda has been a pioneer in this regard.
Technology alone will not address all the challenges faced by LDCs. However, by delivering cost–efficient solutions, it can help level the playing field and drive transformation. It is time for the international community and development partners to back their words with action in helping LDCs advance this agenda. Since LDCs represent an emerging market of 1.4 billion people, when they rise, everyone else will rise with them.
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How tech can boost trade in world’s least developed countries
September 2, 2025
Least developed countries face high trade costs, shrinking aid, and barriers to exports. Technology offers a path to level the playing field, but only if backed by investment in digital infrastructure alongside private–sector innovation, writes Deodat Maharaj.
A
rtificial intelligence and the use of frontier technologies are already transforming trade and boosting prosperity, particularly for developed, and some developing countries. This ranges from digital exchange of documents, the digitalisation of trade processes and leveraging online platforms to fast-track cross-border trade. The rapid adoption of new technologies will further consolidate the dominance of world trade by developed economies, which currently account for roughly 74% of global trade according to the United Nations Conference on Trade and Development (UNCTAD).
The world’s 44 Least Developed Countries (LDCs), with a population of an estimated 1.4 billion people, are experiencing a different trajectory altogether. According to the World Trade Organization, they account for less than 1% of the world’s merchandise trade. LDCs continue to reel from the relentless onslaught of bad news including increased protectionist barriers. UNCTAD has estimated that tariffs on LDCs will have a devastating consequence, possibly leading to an estimated 54% reduction in exports from the world’s poorest countries.
This dire situation is exacerbated by declining overseas development assistance, making it very difficult for governments in LDCs to navigate this trade environment. Success requires they continue to advocate globally for fairer terms of trade.
At the same time, they need to be more aggressive in addressing matters over which they do have control. Otherwise, the status quo will leave their people in a perpetually disadvantageous situation. Imagine paying three times more than your competitors just to ship a single crate of goods across a border. For millions of entrepreneurs in the world’s LDCs, it is the everyday cost of doing business. Technology offers a way out in reducing these high costs.
Indeed, when the international community gathered in Sevilla for the Fourth International Conference on Financing for Development (FfD4) in July 2025, one truth stood out. Technology is no longer a luxury—it is a prerequisite for effective participation in global trade. The outcome document was clear that unlocking trade opportunities for the world’s 44 LDCs requires bridging infrastructure gaps, building domestic technological capacity, and leveraging science, technology and innovation.
Given the challenges and opportunities, what forms the core elements of an action agenda for LDCs to leverage trade to generate jobs and opportunities for its people?
First, there is a need to pivot to digital solutions which can dramatically reduce trade costs and open new markets. According to the World Bank, paperless customs and single–window systems have been proven to cut clearance times by up to 50%, reducing bureaucracy that stifles commerce. In Benin, automating port procedures reduced processing time from 18 days to just three days. E–commerce platforms, when paired with secure payment systems and targeted training, have shown remarkable potential.
Second, invest in digital infrastructure. Data suggests that LDCs still have a lot of catching up to do on digital infrastructure. The solution is for development partners and the international financial institutions to steer more resources in this area with a substantial, fixed percentage of resources of a country’s portfolio dedicated to boosting digital infrastructure.
Third, focus on value addition and transition away from the export of raw commodities. This in turn requires the human resource capacity to spur innovation and creativity. Boosting investment in research and development can pay rich dividends. According to the World Economic Forum, every LDC invests less than 1% of GDP in research and development, far behind more developed countries while the likes of Korea invests 4%.
Finally, for LDCs to enter the technological age, their private sector must lead the way. This is a real challenge in countries like Burundi where internet penetration is a mere 5% of the population. The average internet penetration for Africa is around 38%. So, in addition to digital infrastructure, support must be provided to micro, small and medium–scale enterprises to benefit from the opportunities provided by technology to boost trade, thereby creating jobs and opportunities. This includes the establishment of incubators to support this business sector; boosting their technological capacities to trade and profile their businesses on digital platforms; and helping them to deliver services created by the digital economy. Rwanda has been a pioneer in this regard.
Technology alone will not address all the challenges faced by LDCs. However, by delivering cost–efficient solutions, it can help level the playing field and drive transformation. It is time for the international community and development partners to back their words with action in helping LDCs advance this agenda. Since LDCs represent an emerging market of 1.4 billion people, when they rise, everyone else will rise with them.
