Macro-level Assessment of e-Commerce Readiness in Ethiopia: Emphasis on the Supply-side

E-commerce literature emphasizes the need to periodically assess the level of e-commerce readiness of a nation in order to figure out key areas that require intervention from stakeholders. However, no study is found in extant literature that is aimed at assessing the e-commerce readiness of Ethiopia. The objective of this study is to map the e-commerce readiness level of Ethiopia with emphasis on the supply-side of e-commerce. To that end, a descriptive survey of e-commerce readiness was conducted at macro level. The study was a cross-sectional survey that mainly employed a qualitative approach. The study also reviewed e-commerce readiness studies conducted and models developed both at the regional and international level. From among such models, the Asia-Pacific Economic Cooperation (APEC) self-assessment tool was selected as an appropriate instrument for adoption and development of a measure for e-commerce readiness in Ethiopia. Based on the analysis of the characteristics of the country at the macro-level, the potential of e-commerce and the conditions within the country, some useful implications are forwarded to further encourage e-commerce adoption in the country. Accordingly, the study implies that Ethiopia is at early stage in its preparedness for the networked world. As a result, e-commerce is virtually non-existent, and its emergence will rely on firm steps to upgrade the infrastructural, institutional and legal systems in the country. The detailed measurement made in this study has direct implication on strategizing policy priorities in adopting e-commerce in the country, can also help legislators, business communities and researchers to analyze Ethiopia’s unique demands and develop a tailored action plans to improve the status of e-readiness through optimum allocation of resources.