At a workshop in Tripoli Thursday, the Economy and Trade Ministry’s Libya Trade Network launched the “Mawtuq” (trusted) e-platform for registering e-stores, with the participation of the Ministry of Economy and Trade, Libya Post and several local e-payment companies and store owners.
The workshop was organized under the slogan “Organising the Work of e-stores”.
Libya Post Company made a presentation at the event on providing delivery services and logistical support for e-stores in Libya.
The launched e-commerce platform aims to:
- Document and inventory e-stores in the Libyan market to facilitate the organisation of their work.
- Issue licenses to practice from the Libyan Trade Network in accordance with the text of the decision issued by the Council of Ministers.
- Enhance confidence between the consumer and e-stores, which will reflect positively on the local e-economy.
Does the emergent e-commerce sector need state organisation (interference)?
It must be pointed out that at the workshop the existentialist question of: ‘‘does the emerging e-commerce sector in Libya really need to be organised by the state?’’ was asked. The contrarian opinion saw that interference of the state at the early stage for SMEs could be more suppressing than developmental.
It was pointed out that hundreds or thousands of budding entrepreneurs are already engaged today in a form of e-commerce by opening ‘‘Facebook pages’’ offering all sorts of services and goods.
Women do better without state e-commerce interference?
It was pointed out, for example, that there are today in Libya many women with ‘‘Facebook pages’’ engaged in e-commerce delivering handmade products such as crafts, women’s clothes, children’s clothes, makeup, confectioneries, foods etc, who are earning a living they would otherwise may not be able to in a male dominated society such as Libya.
These women never have to leave their homes and interact with the male society, relying on a partner abroad (usually a close friend or relative) to purchase and export the goods to Libya, and a delivery man/woman to deliver to and collect payment from the end user in Libya.
Most of these women have no shop, commercial bank account, debit cards, trade licences, pay no tax and have no interaction with the state. They are part of the grey/black economy. They are able to trade because they avoid the state and can fill a market gap, with short lead times – a gap the bigger companies cannot fill.
The case for state interference in e-commerce
Making the case for state organisation, the workshop organisers pointed out that for these budding e-commerce Facebook Pages to take the next step upwards they would need to start using the official e-payments facilities and systems operating in Libya, otherwise they would remain small-sized entities.
It was pointed out that by obtaining a trade licence they can open a company bank account and use a debit card. Equally the new state e-commerce platform seeks to encourage honest e-traders and discourage ‘’cowboys’’. By registering on the official state e-commerce platform, e-commerce traders would gain the trust of customers.
The jury was out on the conclusion. It was pointed out that obtaining a trade licence is still very bureaucratic and involves a paperchase and much time and effort.
For many it was thought that at the emergent state, staying outside they government system would probably be better until an e-trader gained enough momentum and grew sufficiently to join the official platform.
However, for businesses with larger capital, joining the platform may be the correct option.
