Enabling trade inclusion for MSMEs, women and underrepresented communities through the postal network (UPU)- UPU TradePost Forum
6 Dec 2023 15:00h - 16:30h UTC
Knowledge Graph of Debate
Session report
Full session report
Tadhim Uwizeye
The analysis delves into the challenges faced by MSMEs (Micro, Small and Medium Enterprises) in effectively trading their products on the global marketplace. One significant hurdle is the prohibitively high cost of shipping products from Africa to global markets, often exceeding the cost of the product itself. This acts as a major deterrent for MSMEs, limiting their ability to compete and sell their products effectively on a global scale. The sentiment towards this issue is negative.
To facilitate easier trade for MSMEs, there is a need for the postal sector to fully digitise its operations and integrate with MSME systems. By doing so, trading processes can be streamlined and made more efficient. The analysis highlights the positive impact of digitisation on MSMEs and emphasises the importance of integrating postal systems with MSME systems. This step promotes smoother trade operations and creates a more favourable trading environment. The sentiment towards this potential solution is positive.
Access to training and capacity-building resources is another crucial aspect in helping entrepreneurs overcome challenges associated with global trade. The availability of such resources enables entrepreneurs to address issues related to shipment and trade effectively. The analysis showcases a positive sentiment towards the importance of these resources, drawing on personal experiences of entrepreneurs who have benefited from training and capacity-building initiatives.
In order to support rural MSMEs, particularly cooperatives of young generations and women from vulnerable families, there is a need for concerted efforts. By focusing on this group, the analysis addresses the issue of inequality and aims to provide opportunities for those in rural areas to compete on a global level. The sentiment towards this aspect is positive, acknowledging the significance of supporting rural MSMEs.
National posts play a vital role in connecting MSMEs to national and international markets. However, their traditional reliance on paperwork can undermine the confidence of MSMEs in their services. To enhance efficiency and connectivity, national posts need to adopt technology systems. The analysis highlights the potential improvements that technology, including tracking systems, digital payment systems, and e-commerce platform integration, can bring to the services provided by national posts. The sentiment towards this argument is positive.
Simplified customs and documentation procedures are necessary for MSMEs to easily ship their products. Complex procedures often hinder their ability to trade effectively on the global market. The sentiment towards this argument is positive, asserting the need for national posts to simplify customs and documentation procedures to promote smoother trade operations.
National posts can also play a pivotal role in promoting local products on international markets. The analysis emphasises the resources available to national posts and the potential partnerships with e-commerce platforms to boost the visibility of local products. By promoting these products, national posts can help MSMEs improve their competitiveness and gain recognition on a global scale.
The National Post of Rwanda serves as a positive example for other countries to follow. By introducing tracking systems and collaborating with e-commerce marketplaces, they have successfully facilitated last-mile delivery and provided good rates for e-commerce platforms. Their efforts demonstrate the potential benefits of integrating technology and services to enhance efficiency and connectivity. The sentiment towards the National Post of Rwanda is highly positive.
Overall, the analysis critically examines the various challenges faced by MSMEs in trading their products globally and proposes potential solutions. These solutions include digitising the postal sector, providing training and capacity-building resources, supporting rural MSMEs, adopting technology systems, simplifying customs and documentation procedures, promoting local products, and learning from positive examples. By addressing these issues, the aim is to create a more equitable and conducive trading environment for MSMEs on the global stage.
Phlippe Isler (Moderator)
Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in achieving Sustainable Development Goals (SDGs) and driving innovation. They account for almost 90% of all businesses and over 50% of jobs worldwide. In least developed countries and small island development states, they represent close to 100% of the business ecosystem. Investing in small businesses can lead to steady and transformational economic change through trade.
However, there is a significant gender disparity in ownership and management of MSMEs. Globally, only one in five businesses has a woman as their top manager, and only one in three businesses has a woman among their principal owners. Women are sole owners of only around 15% of MSMEs globally. This disparity highlights the need for increased gender equality in entrepreneurship and access to resources and opportunities for women.
Access to information and know-how is a critical challenge for MSMEs. Many entrepreneurs lack the necessary information on how to trade and where to trade. To address this, the Trade for MSMEs website serves as a one-stop shop, providing crucial information on trading. Additionally, the world’s first game allows individuals to simulate the experience of being an exporter or entrepreneur, offering valuable insights for MSMEs.
The global growth in e-commerce during the pandemic did not significantly benefit MSMEs and traditional postal services. Despite the number of packages delivered more than doubling, this growth was mainly driven by big e-commerce services and retailers. The Universal Postal Union (UPU) reported an initial drop of over 20% in postal volumes. This indicates that MSMEs faced challenges in leveraging the e-commerce boom, highlighting the need for strategic support.
However, the e-commerce revolution also presents opportunities for MSMEs. It provides a lifetime opportunity to expand their market and benefit from the global reach. Platforms like Correios Market in Spain and Portugal have been established to serve small producers and businesses, enabling access to a larger market. With over 1,700 e-sellers and selling over 190,000 products, Correios Market demonstrates the potential for MSMEs to thrive in the e-commerce landscape.
Postal systems have the potential to boost e-commerce, and some countries have implemented innovative solutions. For instance, the Spanish and Swiss postal systems have come up with great innovations in this regard. In Rwanda, the national postal services are making efforts to be closer to MSMEs and e-commerce services. These examples demonstrate that postal systems can play a crucial role in supporting MSMEs and fostering e-commerce growth.
Despite the potential, improving postal systems worldwide poses challenges. Some regions and countries face difficulties in enhancing their postal services, inhibiting their ability to support MSMEs effectively.
To improve the global postal system, the Universal Postal Union (UPU) needs to play an active role. By collaborating with member countries and stakeholders, UPU can address the challenges and drive meaningful improvements in postal services for the benefit of MSMEs and global trade.
In attracting donor funding for trade facilitation, it is essential to create well-packaged and precise project plans. Donors seek projects that are practical, result-oriented, and have a clear impact. Advocating for these well-crafted project plans can increase the chances of securing donor funding and support for MSMEs.
There is also a willingness to experiment with funding packages for specific government projects. This approach involves exploring different funding opportunities and tailoring them to meet the needs of particular government initiatives. The government of Barbados is cited as a potential candidate for such a funding experiment.
In conclusion, MSMEs are vital for achieving SDGs, driving innovation, and promoting economic growth. However, there are challenges such as gender disparity, limited access to information, and the need to leverage the e-commerce revolution effectively. Platforms like Correios Market and innovative postal systems offer opportunities for MSMEs, while the UPU plays a crucial role in improving the global postal system. Creating well-packaged project plans and experimenting with funding packages can further support MSMEs and drive economic development.
Matthew Wilson
Investing in Micro, Small, and Medium Enterprises (MSMEs) is crucial for achieving steady but transformational economic change and progress towards the Sustainable Development Goals (SDGs). MSMEs play a significant role in the global economy, accounting for almost 90% of all businesses worldwide and over 50% of jobs. In least developed countries and small island development states, MSMEs represent close to 100% of the business ecosystem.
However, women’s representation and empowerment in MSMEs are still limited. Currently, women are sole owners of only around 15% of MSMEs globally. There is also a global gender gap in managerial representation in MSMEs. Investing in MSMEs can be a pathway to women’s economic empowerment and bridge this gap.
MSMEs, especially women-owned ones, face challenges in accessing credit, finance, and trade know-how when trying to enter regional and global markets. Social pressures and prejudices further hinder their progress. Efforts are needed to address these challenges and create an enabling environment for MSMEs to participate in global trade.
While the postal service has the potential to drive small business growth, there are issues that need to be addressed. One in three small businesses lacks faith in the postal service due to experiences of lost mail and damaged packages. Moreover, the cost of sending goods is often higher than the cost of making them, posing a burden on small businesses. These challenges need to be overcome to transform the postal service into a hub for small business growth.
The accessibility and competitiveness of postal services also need improvement, especially for small businesses in rural areas and developing countries. Many small businesses in rural areas lack constant and consistent access to the internet, hampering their ability to utilize postal services effectively. Additionally, regional post offices in some countries, like Barbados, are closing down due to a lack of modernization.
To enhance postal services, effective measurement and evaluation techniques are necessary to ensure optimal service provision. SMEs are seeking partners with integrated end-to-end digital platforms. By implementing effective measurement and evaluation practices, the postal service can meet the evolving needs of SMEs.
Modern trade facilitation hubs are essential for the transformation of postal services. Examples such as Swiss Post’s E-Post Smart Send and Irish Postal Operator Anpost’s e-commerce advice hub demonstrate how postal services can adopt modern technologies and provide services that facilitate global trade.
Partnerships between postal services and various stakeholders, including border agencies, standards agencies, certification labs, financial institutions, and development partners, can bolster capacity-building and provide technical assistance. These partnerships can make trade easier and more accessible for small players.
The Barbados government recognizes the importance of postal services as an economic growth facilitator and is actively working to modernize and digitalize them. Efforts such as opening a regional UPU office and conducting training courses with UPU support signify the commitment to improving postal services.
However, financial constraints and prioritization of other pressing issues like debt and climate change may slow down the progress of modernizing postal services. Small countries like Barbados face challenges in allocating resources and may prioritize other issues over postal service transformation.
In conclusion, investing in MSMEs can lead to steady economic change and contribute to the achievement of SDGs. Addressing challenges such as limited women’s representation, access to credit and trade know-how, and the image and accessibility of the postal service is crucial for fostering small business growth. Improving service measurement, creating modern trade facilitation hubs, and forming partnerships can elevate the capabilities of postal services. The efforts of the Barbados government highlight the recognition of the importance of postal services in facilitating economic growth. However, financial constraints and competing priorities may impact the pace of progress.
Siva Somasundram
The Universal Postal Union (UPU) actively supports the digital transformation of postal operators, particularly in developing countries, through various initiatives. A notable effort is the Connect.Post project, a collaboration with the International Telecommunication Union (ITU), which aims to connect post offices to the internet. This initiative is crucial for enabling postal services to adopt digital technologies and improve their efficiency and convenience for customers.
However, challenges in implementation and funding remain major roadblocks to the success of these digital transformation initiatives. Adequate resources and financial support are essential for postal operators to invest in the necessary infrastructure, technologies, and training programs. Insufficient funding can hinder the expansion of internet access in post offices, limiting their potential to offer improved services.
Additionally, the ownership structure of postal operators, often government-owned in developing countries, highlights the importance of government investment and commitment to service quality. Government support determines the allocation of funds and resources required for growth and innovation. Therefore, government investment and commitment play a vital role in enhancing overall service quality, efficiency, and accessibility of postal services.
In conclusion, the UPU actively supports the digital transformation of postal operators through initiatives like Connect.Post. However, challenges in implementation and funding pose obstacles to the success of these initiatives. Government investment and commitment are crucial, particularly in developing countries where postal operators are often government-owned. Overcoming these challenges and securing the necessary funding and support will enable postal operators to embark on their digital transformation journey, improving services and meeting evolving customer needs.
Susan Alexander
The Universal Postal Union (UPU) is an intergovernmental organization and a United Nations agency with 192 member countries. It supports its member countries in achieving the United Nations’ sustainable development goals (SDGs). The UPU works towards fulfilling these goals by aligning its activities with them.
Gender equality is a key area of focus for the UPU. The organization has specific policies to promote gender equality and is actively expanding its capacity to achieve SDG 5, which focuses on gender equality. It aims to promote gender equality throughout the entire UPU organization and ensure equal representation of women in leadership and decision-making processes. The UPU recognizes the importance of gender equality for sustainable development and is committed to integrating gender equality principles into all of its programs.
In addition to gender equality, the UPU emphasizes the importance of government involvement in creating a conducive regulatory environment for postal services. This entails engaging with ministries responsible for postal services, communications, commerce, and digitalization. The UPU acknowledges that collaboration between governments and postal operators is crucial for shaping policies that can effectively address the needs of underrepresented communities and ensure the inclusivity of postal services.
Postal services worldwide are increasingly focusing on the specific needs of women, micro, small, and medium-sized enterprises (MSMEs), and rural businesses. They offer services such as postal financial services, e-commerce platforms, and facilitation of import and export customs procedures that cater to the needs of these groups. By targeting rural areas and smaller customers, including women-led businesses, postal services contribute to the achievement of SDG 5 (gender equality) and SDG 9 (industry, innovation, and infrastructure).
The UPU recognizes the importance of international trade and digitalization and aims to simplify and enhance these areas. It actively engages in discussions with major players, such as the World Bank, World Trade Organization (WTO), United Nations Economic Commission for Europe (UNECE), and United Nations Centre for Trade Facilitation and Electronic Business (UNCFACT), to explore ways to improve international trade in the digital era. The UPU has existing programs, such as Trade Post and Connect the Post, which seek to digitalize postal services. It emphasizes the need to include perspectives from smaller retailers and entrepreneurs in these discussions to effectively address their needs and challenges.
In conclusion, the UPU plays a vital role in supporting its member countries in achieving the SDGs, with a particular focus on gender equality and creating a conducive regulatory environment for postal services. Postal services worldwide are implementing measures to cater to the needs of underrepresented communities, and the UPU actively participates in discussions to enhance international trade in the digital age. By closely collaborating with governments and involving underrepresented communities in policy discussions, the UPU seeks to empower these groups and ensure their active participation in shaping policies and strategies.
Elena Fernández RodrÃguez
During the discussion, the speakers covered various interconnected topics related to postal infrastructure, trade, growth, and micro, small, and medium enterprises (MSMEs). They emphasized the importance of supporting postal infrastructure as essential for trade and growth, especially for MSMEs. MSMEs make up over 90% of businesses in Spain and contribute 65% to the country’s GDP. Furthermore, it was noted that 42.4% of these MSMEs are owned by women. To address this, the speakers argued that investment in women-led businesses should be increased. They highlighted the significant investment gap between male-led and female-led businesses, amounting to a staggering £285 billion. It was also mentioned that data on investment in women-led businesses is crucial. Notably, female-led businesses have shown a better social and environmental impact, supporting the case for increased investment.
The speakers also discussed the challenges posed by digitization, training, and connectivity in the context of green and digital transformation. They expressed concern that these challenges could leave certain groups of people behind in the transformation process. Similarly, the negative impact of red tape and customs and trade barriers was highlighted, particularly for smaller companies. It was mentioned that 0.33% of Spanish GDP is lost due to red tape, and reducing trade barriers could have a significant positive impact on international GDP.
The establishment of a food delivery platform in 2020 was mentioned during the discussion. However, it was noted that currently, the platform is limited to operating in Spain and Portugal due to challenges with customs. This observation aligns with the Sustainable Development Goal of reducing inequalities (SDG 10), as the platform is not accessible to consumers outside these two countries.
The speakers underscored the significance of global cooperation through platforms like the Universal Postal Union (UPU). They highlighted the planned expansion of the Correos market, a platform that enables MSMEs to access markets, to include the entire Latin American region. This illustrates how UPU and similar institutions can provide a framework for geographically based engagements, fostering collaboration on a global scale.
Moreover, the vital role played by post offices as critical infrastructure was emphasized. Post offices have proven to be critical in delivering medications and other essential supplies, especially during challenging times. It was also mentioned that many postal operators, like Correos, are state-owned and are currently undergoing transformation, which requires adequate investment.
The discussion highlighted the importance of understanding the value chain and working in partnerships with governments, regulators, companies, and customs. Post offices, which are subject to the standards and trade barriers set by others, including customs and regulations, sometimes face challenges as they are not the ones determining these standards.
In conclusion, the speakers’ discussion covered various aspects of postal infrastructure, trade, growth, and MSMEs. They emphasized the need to support postal infrastructure for trade and growth, increase investment in women-led businesses, tackle challenges related to digitization, training, and connectivity, address red tape and trade barriers, and recognize the critical role of post offices as infrastructure. Their arguments were supported by various facts and examples, highlighting the importance of collaboration and partnerships in achieving sustainable and inclusive development.
Audience
The Global Alliance for Trade Facilitation is offering its assistance in developing comprehensive project plans to expand postal systems. This initiative aims to attract more funding from donors, supporting the growth and improvement of postal services. The Director of the Global Alliance for Trade Facilitation, who is the speaker in this context, has vast experience in dealing with donors regularly. This demonstrates their expertise and ability to effectively package project proposals that can secure financial support from donors.
In addition to the Global Alliance’s support, the audience at the event also expressed agreement regarding the importance of enhancing the role of postal systems in economic development. They emphasized that postal services play a significant role not only in trade facilitation but also in other sectors such as agriculture. For instance, a member of the audience from Côte d’Ivoire, a primarily agricultural country, highlighted the use of the postal system to promote local products. This illustrates the multifaceted impact and potential of postal systems in supporting economic growth and achieving sustainable development goals related to decent work and economic growth (SDG 8) and zero hunger (SDG 2).
Furthermore, the ambassador present at the event expressed their support for the Universal Postal Union (UPU) and its efforts in developing projects. They also expressed their desire to serve as a bridge between the UPU and their respective capitals. The representative of Rwanda, a country recognised for its accomplishments in postal system development, showcases a commitment to international collaboration and partnerships for the advancement of postal services. This aligns with SDG 9, which focuses on industry, innovation, and infrastructure, as well as SDG 17, which emphasises partnerships for the goals.
To summarise, the Global Alliance for Trade Facilitation is ready to provide invaluable support in the form of well-packaged project plans to expand postal systems, aiming to attract financial support from donors. The consensus among the audience further emphasises the importance of enhancing the role of postal systems in economic development, with notable contributions in sectors such as agriculture. Lastly, the ambassador’s support for the UPU and their intention to facilitate collaboration between the UPU and their capitals exemplify the dedication to international partnerships for the betterment of postal services worldwide.
Speakers
A
Audience
Speech speed
147 words per minute
Speech length
628 words
Speech time
257 secs
EF
Elena Fernández RodrÃguez
Speech speed
124 words per minute
Speech length
1399 words
Speech time
678 secs
MW
Matthew Wilson
Speech speed
188 words per minute
Speech length
3039 words
Speech time
968 secs
PI
Phlippe Isler (Moderator)
Speech speed
168 words per minute
Speech length
2231 words
Speech time
796 secs
SS
Siva Somasundram
Speech speed
179 words per minute
Speech length
331 words
Speech time
111 secs
SA
Susan Alexander
Speech speed
159 words per minute
Speech length
1389 words
Speech time
524 secs
TU
Tadhim Uwizeye
Speech speed
154 words per minute
Speech length
2418 words
Speech time
940 secs
Related event
