NAYPYITAW, Myanmar — The coronavirus pandemic interrupted Myanmar’s recent economic growth and expansion. Recovering from the negative economic and social effects of travel bans, lockdowns and the overall health crisis will be a challenge. People are anxious that Myanmar’s financial future is at risk as well as its recent and remarkable progress in poverty reduction. Some of Myanmar’s largest industries such as retail trade, tourism and transportation are badly hurt and will need outside support to improve. One sector, however, has grown. It should not come as a surprise, but the Information and Communications Technology (ICT) sector is experiencing a surge of activity from the nation’s increasing reliance on telecommunication and e-commerce. E-commerce is quickly becoming a key industry in Myanmar during the pandemic and could reduce the risk of poverty throughout the country.
Digital Economy Development of Myanmar
As of 2019, Myanmar’s e-commerce market value was just $6 million. Its retail market, in contrast, is worth nearly $10 billion. E-commerce in the country has potential, and many are optimistic despite its small size. First of all, the Government of Myanmar is supporting e-commerce. The government created a digital trade and e-commerce development sub-committee (DTECD). The Deputy Minister of Commerce heads the committee.
The DTECD’s purpose is to enable the private and public sectors to work together to encourage small businesses and enterprises to digitalize. The committee will make important decisions on regulations with private sector feedback and input. One of the main goals of the committee is to increase the income of the rural population through e-commerce in Myanmar. Many believe that digital development will improve the general development of the country.
Facebook Marketplace
In Myanmar, 85% of all internet traffic is on Facebook. This is partially because much of the online shopping in Myanmar is performed through the social network’s platform. The ease of becoming a seller on Facebook paired with the ease of becoming a buyer makes it a popular choice. The Facebook app allows for quick communication between buyers and sellers. Additionally, many physical shops in Myanmar have created Facebook pages to reach online buyers during the coronavirus pandemic. By utilizing Facebook groups and live videos, shop owners and others can efficiently make a profit. Thus, stimulating the overall economy and even providing goods to rural areas.
The dominance of Facebook has been challenged by niche, e-commerce start-ups unique to Myanmar, but some of these shopping platforms have struggled because many producers, sellers and consumers depend on Facebook and are reluctant to shift platforms.
Ezay Engages Emerging Markets
One start-up in Myanmar that is gaining ground and helping to serve the interests of rural communities is Ezay. The company’s mission is to connect “mom and pop” shops with wholesalers through its app. Ezay is an appealing alternative to Facebook for sellers because its app allows for online orders and fast deliveries. The company fosters development by providing an avenue to improve the livelihoods of small business owners across Myanmar’s regions. Ezay surmounts the difficulties that rural retailers and shop owners face with technology, making it a promising example of how e-commerce in Myanmar can support rural communities.
Internet and mobile phone usage in Myanmar are high. There is room for growth in e-commerce in Myanmar. This comes at a time where going to shops in-person is a potential risk to public health. Companies like Ezay can develop e-commerce, and, like the DTECD hopes, develop the more rural regions in Myanmar to lead to reductions in poverty despite the setbacks that COVID-19 presented.
– Mia McKnight
Photo: Flickr