Telling the trade stories of least developed countries

Membership in the World Trade Organization (WTO) provides a significant opportunity for the world’s least developed countries (LDCs) to advance their economic growth. Although there are differences in economic structure, geography and population size to navigate, Comoros – an archipelago of three islands off the coast of East Africa – can draw inspiration from Cambodia's remarkable progress. This island nation in the Indian Ocean became the WTO's 165th member in August 2024 after 17 years of negotiations.

With support from the EIF, the Democratic Republic of the Congo has strengthened trade institutions by institutionalizing the National Implementation Unit, enhancing trade policy coordination, and promoting regional integration through trade facilitation projects. Additionally, targeted support for micro-, small-, and medium-sized enterprises in the palm oil sector has helped boost economic diversification, create jobs, and improve gender inclusion while promoting environmental sustainability.

As the country prepares for graduation from LDC status in 2026, it is readying key industries to attract foreign direct investment (FDI) and ensure that the economy continues its upward trajectory through its participation in the global trading system. Towards this future, the EIF has been partnering with the Government of Bangladesh and local institutions with a focus on pro-poor export and trade competitiveness. The EIF has supported capacity development, enabled policies and helped coordinate the public and private sectors to maximize sustainable trade and market competitiveness and contribute to the goal of decent work and better incomes.

In Africa, the unique experience of each of the 16 million rural women who make a living from shea inspires us more and more every day. Shea is an important crop, both economically and socially. It employs 4 million women for export and generates USD 237 million a year in income at the community level in West Africa. At the household level, shea accounts for up to 12% of household income and up to 32% of cash available, which is earned during the lean season.

Nepal’s first Diagnostic Trade Integration Strategy (DTIS) in 2003 identified a range of products with comparative and competitive advantages; these included, for example, several labour-intensive manufacturing and agricultural products. This was followed by an update in 2010, the Nepal Trade Integration Strategy (NTIS 2010), which outlined actionable priorities for export sector development. Based on these priorities, projects were implemented to strengthen value chains for ginger, medicinal and aromatic plants, and Chyangra Pashmina (CP), with support from the EIF. The NTIS 2016 further emphasized product and value chain development, including in the tea sector, leading to the implementation of a dedicated tea project to strengthen the capacity of this sector.

Located on the northern coast of the Gulf of Guinea on Africa’s west coast, the Togolese Republic is bordered by Ghana, Benin, and Burkina Faso. Togo is home to some 9 million inhabitants and boasts a diverse climate and vast arable lands that hold great potential for agricultural production. The agriculture sector employs most of Togo’s workforce in the production of food crops such as cereals, tubers, and soybeans. Cash crops such as coffee, cocoa, and cotton are also important economic drivers, accounting for 20% of Togo’s export earnings. EIF support to Togo began in 2008. Much has been achieved in the intervening years, particularly with regard to regional integration and the development of the cashew, shea, and soybean sectors both in the country and more broadly in the region.

Niger is a landlocked country of some 26 million people, located in the heart of the Sahel. It is surrounded by Algeria and Libya to the north, Chad to the east, Nigeria and Benin to the south, and Burkina Faso and Mali to the west. This geographical position makes it vulnerable to instability in any of these countries, but also constitutes a strategic location to promote beneficial links between countries to the north and south. The EIF partnership with the Government of Niger began in 2005 with a Diagnostic Trade Integration Study (DTIS) undertaken by the United Nations Conference on Trade and Development (UNCTAD). The DTIS was adopted in 2010 by the Council of Ministers, following an extensive consultative process involving multiple stakeholders in government, development partners, the public and private sectors and civil society. The DTIS highlighted development priorities for Niger, particularly the need to integrate trade into the country’s development strategies and the regional and global trading system. The subsequent 2015 DTIS Update notes: "Niger's geographical position, landlocked and on the periphery of a region with multiple geopolitical and economic constraints, makes trade facilitation the key to the country's commercial integration - and beyond that, to its growth and development."

Stretching along the Indian Ocean coastline from southern to eastern Africa, Mozambique is endowed with rich arable land, water sources, energy, and mineral resources, including newly discovered natural gas deposits off its coast. The country is strategically located as a gateway to global markets for its bordering landlocked neighbours – Malawi, Zambia, Zimbabwe and Eswatini. Mozambique’s main economic sectors are agriculture, mining and extractive industries, energy, transport and logistics, as well as tourism. There is also a growing manufacturing and industrial sector focused mainly on textiles, cement and agro-processing. Mozambique also provides services, including financial, telecommunications and retail services. Of its population of around 33 million, 70% are mainly employed in agriculture, primarily in small-scale or subsistence farming.

Guinea-Bissau is a coastal West African country with a population of some 2.2 million people (2024) that is bordered by Senegal to the north and Guinea to the south and east. Fishing, tourism and agriculture are the main drivers of the economy, with a high level of dependence on the cashew sector. This single crop is grown by some 69% of the country’s subsistence farmers, with 5% of the country’s land dedicated to cashew production. Cashew accounts for more than 90% of the country’s export earnings and 10% of government tax revenue. Guinea-Bissau imports most of its basic food, including rice, wheat flour and sugar, which are staples in the country. The EIF has been supporting Guinea-Bissau since 2010 with a goal of achieving four key milestones: 1) establishing government policies that boost trade and economic development and ensuring that trade is integrated into national development and poverty reduction strategies; 2) improving coordination of development partners’ activities; 3) increasing Aid for Trade (AfT); and 4) strengthening the country’s productive sectors and export capacities.

Having achieved independence in 2002 and boasting a population of only 1.3 million people, Timor-Leste is the youngest and the second least-populated country in Southeast Asia. Despite this, the country has achieved significant progress in terms of human development, mainly driven by revenue from offshore oil and gas. According to the World Bank, the proportion of Timorese living in poverty declined from 50% in 2007 to an estimated 42% in 2014. Surplus oil and gas revenues go into a sovereign fund, the Timor-Leste Petroleum Fund, which was established in 2005. According to the World Bank's Timor-Leste Economic Report 2021, the country has also achieved significant declines in child and maternal mortality rates, increases in youth literacy, and improvements in energy and transport infrastructure.

The United Republic of Tanzania, with a population of 64 million, comprises the Tanzania mainland and the semi-autonomous Zanzibar archipelago of islands located in the Indian Ocean. The country is a member of the East African Community and part of the Great Lakes Region. • The Enhanced Integrated Framework’s (EIF’s) partnership with the United Republic of Tanzania has worked towards trade diversification by enabling policies and strategies, institutional arrangements for Aid for Trade (AfT), and investment and enhanced value addition in sectors such as honey, seaweed, anchovies and horticulture. In the seaweed value chain, average productivity per unit acre has almost doubled as a result of using new deep-sea harvesting methods and equipment.

The Central African Republic, a vast country with a small population of five million, is testing the potential for achieving lasting peace through trade for development to improve livelihoods and build a better future for this and coming generations.

Digitalization has the potential to transform the way businesses achieve a triple bottom line – economic, social and environmental – to address the rising concerns of shareholders. One way to achieve this objective is to enhance transparency and meaningful integration of these dimensions into the entire supply chain, for which digitalization can be a powerful tool.

Digital technology touches every aspect of human lives and all the UN Sustainable Development Goals (SDGs). While digital transformation can help the 45 Least Developed Countries (LDCs) to sidestep traditional development pathways, the real challenge is the growing digital divide between the LDCs and the rest of the world. As richer parts of the world become increasingly adept at leveraging digital technology for value creation, the LDCs risk falling further behind.

The EIF supported Madagascar’s DTIS in 2003 as one of the first three Integrated Framework DTIS pilot countries, along with Cambodia and Mauritania.

To promote economic growth, EIF support to Liberia centred on tackling supply-side constraints to trade. The goal of enhancing trade was to reduce extreme poverty, estimated to exceed 80% in 2003. The EIF’s engagement also demonstrates its commitment to fostering partnerships that promote local ownership of Liberia’s development agenda. Initially, support focused on establishing strong institutional structures and strengthening capacity to develop policies and mainstream trade into national strategies.

The EIF's efforts to support Angola through a pro-poor trade agenda crystallized moreover under a recent partnership between the Government of Angola and UNDP.

The partnership between The Gambia and the EIF began with country-led evidence‑based research and analysis to identify its pro-poor trade priorities. The resulting policy-guiding document – the 2007 Diagnostic Trade Integration Study (DTIS) – identified diversification and domestic production of goods and services in the areas of tourism, groundnuts and other agriculture products and fishing as sectors with the potential to spur sustainable development.

The EIF support to Malawi began in 2012. The Government of Malawi, through the Ministry of Trade and Industry (MTI), sought to use the EIF partnership to unlock Malawi's latent trade potential through targeted support in three strategic areas: i) strengthening the capacity of the MTI to develop trade policies and strategies and to participate more effectively in the World Trade Organization and regional trade agreements; ii) addressing challenges faced by smallholder farmers to trade; and iii) supporting the Malawi Investment and Trade Centre (MITC) to better promote exports and investments for the agro-industry, including working with the World Bank in establishing the groundwork for an agro-processing special economic zone.

EIF’s support to Somalia has been limited and has exclusively focused on the country's accession to the World Trade Organization (WTO) by supporting capacity-building around skills to navigate the trade landscape.

The partnership between Bhutan and the EIF stretches back to 2009. Directly contributing to several UN Sustainable Development Goals (SDGs), particularly SDG 8 on decent work and economic growth, the EIF facility was well aligned to work within the context of Bhutan's development philosophy. The EIF supported the development of Bhutan's trade agenda roadmap, improving policies supporting pro-poor trade and strengthening institutional coordination, including human capacity for trade and development. Beyond this, the EIF contributed to building the productive capacity of farmers SMEs and facilitated the country's ability to leverage additional funding through catalytic project support.

Tuvalu, a small set of islands in the Pacific Ocean, is having to work harder than most other least developed countries to find ways of improving the lives of its population. Trade for development provides an opportunity, but its size, insularity and remoteness constrain trade in terms of supply capacity, global and regional market access and trade competitiveness.

The Government of Benin established a partnership with the EIF in 2003, embarking on the development of a Diagnostic Trade Integration Study (DTIS) and Action Matrix, along with evidence‑based and government-led analysis of constraints and opportunities for making trade work for economic prosperity and poverty reduction. The DTIS was completed in 2005, with an update ten years later. Together, the studies have provided a roadmap for progress toward the goal of supporting small businesses to trade and develop the kinds of jobs that improve lives and spur sustainable economic development.

Since 2019, the Ministry of Foreign Affairs and External Trade, with support from the Enhanced Integrated Framework (EIF), has been implementing the “Enhancing Capacity for Agriculture Trade” (ECAT) project across Solomon Islands. The Ministry of Health and Medical Services, and that of agriculture and livestock, are also involved.

Farming is a demanding sector, particularly for those seeking to compete in the global market. Many farmers in Zambia are unable to meet international standards and other requirements in importing countries that can help them implement good agricultural practices and stand out on the world stage.

Building forward and backward production linkages between agricultural and manufacturing sectors by adding value to primary commodities should be a priority for LDCs. Taking incremental steps towards industrialisation through increased productive capacities, with the support of development partners, will ensure that progress will be sustainable and robust, truly leading LDCs along the path of development. 

Most of Rwanda’s cross border traders are women and rely on cross-border trade as their sole source of income. According to a recent assessment by Pro-Femmes/Twese Hamwe, the Rwandan umbrella organisation for women’s associations, most cross border traders have experienced not only a large loss in revenue due to border closures but also a complete depletion of their savings.