Nathalie Raschka, Policy Economist at the International Growth Centre, highlights some of the opportunities for LDCs in digital trade.

The advantage is clear: compared with manufacturing, BPO does not require massive capital investment. What it needs most is skilled people, reliable internet, electricity, and language capacity.

For many LDCs, that is where the opportunity begins.

Is there already a success story?

Yes. In Bangladesh, the BPO sector grew from only a few hundred workers in 2010 to more than 50,000 workers by 2020. Its strengths were a young, university-educated workforce, good English-language skills, and improving IT and electricity infrastructure.

The lesson is simple: with the right skills and connectivity, digital services can become a serious employment engine.

What is the second opportunity?

Online freelancing. Freelancers can provide services such as coding, video editing, design, translation, digital marketing, and administrative support through platforms like Fiverr and Upwork.

The entry barriers are low. In many cases, a freelancer needs only a laptop or even a phone, internet access, and a platform profile. That can connect workers not only to local clients, but also to regional and high-income markets.

Why does freelancing matter beyond creating income?

Because it can break geographic and social barriers. In many LDCs, business opportunities depend heavily on word of mouth and local networks. Freelancing platforms help workers reach clients outside those circles.

They also allow freelancers to signal quality through ratings, prices and reviews. Trust still matters, which is why escrow systems are important: payment is released once the buyer approves the work. This gives both sides more confidence.

Who benefits most from online freelancing?

People who are often excluded from traditional labour markets. Freelancing can support rural employment because workers do not necessarily need to migrate to cities. If they have electricity and internet, they can work from where they are.

It can also create opportunities for women and people with disabilities, because work can often be done from home and structured around family or personal responsibilities. Bangladesh again shows the potential. It provides around 16% of the world’s online freelance workforce, and 29% of Bangladeshi freelancers are women.

What is the third opportunity?

E-commerce. E-commerce allows manufacturers, retailers, wholesalers and SMEs to reach domestic, regional and international buyers.

This matters especially for smaller firms. SMEs often struggle to find information about foreign markets, buyers and demand conditions. Online platforms can lower that barrier and expand their customer base.

For small firms, e-commerce is not just a sales channel. It can be an export gateway.

What makes e-commerce work?

Trust. On digital marketplaces, reputation matters. Better-rated sellers often achieve higher revenues, more buyers and stronger export performance.

That is why platforms need reliable payment systems, consumer protection, dispute resolution, and escrow mechanisms. Without trust, buyers hesitate. With trust, small firms can sell beyond their local market.

Is there an LDC example in e-commerce?

Yes: Cambodia. In 2019, Cambodia adopted its first e-commerce and consumer protection laws to regulate domestic and cross-border e-commerce.

By 2023, the government reportedly collected more than US$ 76 million in tax revenues from e-commerce transactions.

That shows how digital trade can support firms while also strengthening public revenue.

What is needed for digital trade to succeed?

Three key elements: affordable internet, digital skills, and smart regulation. First, internet access must be affordable and reliable. In LDCs, the average cost of mobile data, minutes and SMS was around 7.3% of gross national income per capita in 2023, compared with a global average of 1.4%. That cost gap matters. If people cannot afford to connect, they cannot participate.

What about skills?

Digital trade needs more than basic digital literacy. Workers and entrepreneurs need practical skills: online research, digital marketing, video editing, coding, platform management, customer communication, cybersecurity awareness, and data handling.

Governments need targeted training for businesses and entrepreneurs. Digital skills should also be built into schools and technical and vocational education. Without skills, connectivity alone is not enough.

And regulation?

Regulation can either unlock digital trade or block it. Many LDCs have fewer enabling policies, such as consumer protection laws, and more restrictive rules that raise compliance costs.

Restrictive data rules, unclear mandates, and burdensome licensing can make it harder for startups and SMEs to enter digital markets.

The goal should be simple: protect users, build trust and make it easier for firms to start and grow.

What is the takeaway?

Digital trade gives LDCs a new route into the global economy. It can create jobs, support young workers, open opportunities for women and rural communities, help SMEs reach new buyers, and reduce dependence on volatile commodity exports.

But the opportunity will not happen automatically. The countries that move fastest on affordable internet, digital skills, trust-building platforms and smart regulation will be the ones best positioned to turn digital trade into jobs, exports and resilience.