Digital economy opportunities for least developed countries
ICT goods exports from least developed countries (LDCs) grew by 18% in 2024 to reach US$12.5 billion — the strongest annual growth rate in a decade. While this figure remains small relative to the US$2.4 trillion in global ICT goods trade, the trend signals an emerging opportunity for technology-led development in some of the world's poorest economies. UNCTADstat's expanded digital economy datasets provide new granularity on how LDCs are participating in — and being excluded from — the global digital economy.
Bangladesh continues to dominate ICT manufacturing exports among LDCs, leveraging its textile production base to move into electronics assembly. Ethiopia has emerged as a new entrant, with investments in industrial parks attracting Asian electronics manufacturers seeking lower-cost production bases. Cambodia and Myanmar also recorded significant ICT export growth, though from very low baselines. Outside Asia, digitally deliverable services are the more relevant opportunity for African LDCs, where manufacturing capacity is more limited.
The fastest-growing segment for African LDCs is digitally deliverable services — software, data processing, and business process outsourcing. Rwanda, Senegal, and Tanzania are investing heavily in digital infrastructure and skills development to position themselves as regional hubs for digital services exports. The rapid spread of mobile internet — now reaching 55% of Sub-Saharan Africa's population — is enabling a new generation of digital workers and entrepreneurs to access global markets.
However, structural barriers remain formidable. Internet access costs in LDCs average 4.7% of per-capita income — more than ten times the level in high-income economies. Electricity unreliability constrains digital enterprise. Payments infrastructure for digital trade remains inadequate, with cross-border digital payment costs in Africa averaging 8.5% of transaction value. Cybersecurity capacity is limited, creating risks for businesses engaging in cross-border e-commerce.
UNCTAD analysis points to a set of policy interventions with the highest potential impact for LDC digital economy development. These include: universal broadband coverage programmes supported by digital infrastructure financing; digital literacy programmes integrated into secondary and tertiary education curricula; e-government platforms that reduce the cost of business compliance; and participation in regional data governance frameworks that allow cross-border data flows under agreed rules. Without concerted action to address these barriers, the risk is that the digital economy deepens inequalities between the most and least developed economies rather than bridging them.
Datasets used in this analysis
