E-commerce in developing

countries: The case of Liberia

By: Darren Wilkins

Liberia Open Source Initiative

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 ABSTRACT

Emerging from a 14-year civil war, Liberia has made relative strides in several areas including
the installation of an Information and Communications Technology (hereafter referred as ICT)
infrastructure that can provide limited, if not full support for an E-commerce platform. There is
currently no E-commerce platform in the country; something it desperately needs for its
economy to gain global exposure. Hitherto the preparation of this paper, commercial activities
were being done through the traditional brick and mortar approach which offers little or no
access to global markets. This paper proposes the adoption of E-commerce in Liberia as partial
solution to the plethora of economic problems being faced by that country, especially in the areas
of commerce and agriculture. The paper is a result of a heuristic and empirical evaluation that
was done to identify the possibility of E-commerce adoption in Liberia. It subsumes the relative
strides that have been made in the ICT sector of Liberia and uses Internet-based technologies and
applications to develop an E-commerce platform. A total of five visits to Liberia by the
researcher; a test performed eight participants (including the researcher) living in Liberia,
Ghana, and the USA; and research done using of available literatures were utilized in preparing
this paper. Models, analysis, and conclusions made in this paper are based on the research and
materials listed above as well as a research done by Dr. Michael Best and others of Georgia Tech
University (Best et al, 2007). Although this paper provides a framework for E-commerce
adoption in Liberia, it represents an initial attempt to investigate E-commerce as an economic
development initiative in developing countries. Certainly, more research will need to be done in
this area before E-commerce can be proffered as a full economic development option in Liberia
as well as other developing countries.

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 1. INTRODUCTION

It has been stated that fiber optic cables and several other technological advancements are
responsible for the flattened world in which we currently live (Friedman, 2007). But not only
has fiber optic cables and technological advancements flattened the world, they have changed the
way business is done. This has led to what is referred to today as the “New Economy.” The
advent of the so-called “New Economy” driven by the Internet and its technologies provided
new windows of opportunities for businesses to transcend geographical boundaries and tap into
markets of other countries. E-commerce, a novel phenomenon, and component of the “New
Economy” which is powered by the Internet, has also attracted brick and mortar businesses as an
added value. But despite its successes in developed countries, E-commerce has not been a
universal phenomenon. Developing countries, especially those on the continent of Africa have
yet to experience the benefits of E-commerce. Liberia, a country located on the West coast of
Africa, is one of the many developing countries that is yet to adopt E-commerce. This is a result
of endemic corruption and dictatorship on the part of previous regimes, as well as a devastating
and prolonged (14-year) civil uprising. Furthermore, the activities of previous governments
resulted to huge debts to international stakeholders including Western countries, the World
Bank, the International Monetary Fund, etc, making the country financially incapable of any
developmental initiative.

As the oldest African republic, Liberia had struggled to make significant progress in the
area of economic development because of reasons mentioned above. The recently ended 14-year
devastating civil war further relegated the country to an economically and socially emasculated
society. Fortunately, after much devastation, poverty, and suffering, the country has, through the
help of the United Nations, and other international stakeholders and partners, achieved relative
peace and stability providing a medium for economic recovery. The recovery process initiated by
the country’s newly elected president, Ellen Johnson Sirleaf, began on the basis of a poverty
reduction strategy document. The document further lists initiatives and policies that would be
embarked upon to bring economic development to the country. One of the many initiatives
included in that document was the use of ICTs to drive economic development; E-commerce was
also mentioned briefly in that document. The document reinforces Barton et al (2009) argument
that ICT is mundanely acknowledged to be a key vector for reducing poverty, ensuring socio-
economic development, and reaching the Millennium Development Goals
(http://www.un.org/millenniumgoals/). But this acknowledgement of the key vectors has merely
been part of policy statements proffered by international stakeholders; not much has been done
in actualizing these policies in developing countries. Other strategies adopted by the new
government of Liberia include: inviting foreign companies to invest in the country, providing
loans to Liberians to run small businesses, encouraging Liberians to engage in business, etc. Yet,
the lack of infrastructural framework and global exposure remain obstacles to the adopted
strategies thus, necessitating the incorporation of ICTs as the vehicle to achieve sustainable
economic development.

The relative progress (LIBTELCO, www.Libtelco.com.lr ) that Liberia has made in area
of ICT is worth noting because of its significant impact on E-commerce. ICT penetration has
increased minimally since the previous government of Mr. Charles Taylor. Satellite
communications technologies which are ideal for countries that lack physical infrastructures and

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their ability to extend geographic coverage of terrestrial mobile networks (Lutz, 1998) were
utilized for ICT penetration in Liberia. However, this achievement has led to a dichotomy that
illustrates slower ICT, but rapid mobile telecommunications penetration in the country. The
result of this is the ubiquity of cellular phones, its use as the primary means of communication,
and its role as vital revenue generator for the country. Success in this sector also illustrates the
potential to run an E-commerce platform via mobile communications known as M-commerce.
M-commerce has become the new approach to digital commerce especially in advanced
countries, although, developing countries have begun taking advantage of it as well. This new
phenomenon is sparked by growth in the number of mobile phones in developing countries
which has surpassed growth in the number of fixed lines (Boadi & Shaik, 2006).

The idea of E-commerce in Liberia for economic development remains novel. While
there has been limited research (Best et al, 2007) on the ICT sector of Liberia, E-commerce has
only been briefly mentioned in policy documents. The fact that it is crucial to Liberia’s global
economic initiatives has not been acknowledged by stakeholders, who it appears, are complacent
with the status quo. This paper takes a heuristic and empirical approach in investigating E-
commerce adoption in Liberia as an economic development option. It embarks on a pioneering
initiative which utilizes E-commerce to change the way business is done in Liberia. It identifies a
better and cheaper medium for Liberians to trade goods and services, and offers new ways for
small business owners, farmers, and other stakeholders to improve and globalize their
businesses. The paper further identifies the plethora of benefits that an E-commerce initiative can
bring to Liberia, and heeds President Ellen Johnson-Sirleaf’s request for Liberians to “seize
opportunities and work hard to make their collective dream a reality” (International Monetary
Fund, 2008). The paper then introduces a framework for E-commerce adoption which includes a
fundamental change in business paradigms in Liberia. Yet, while the paper identifies an E-
commerce adoption framework, further research in areas like cyber-security, online transaction
and more. Also, several institutional initiatives need to be addressed to ensure political stability
as well as providing the needed education to maintain an E-commerce implementation.

The subsequent sections of this paper are in the following order: Section 2.0 provides a
review of work related to E-commerce in developing countries. Section 3.0 provides an
explanation of the project. Section 4.0 provides results and discussion, and Section 5.0 provides
the conclusion.

2. REVIEW OF WORK RELATED TO E-COMMERCE

E-commerce is the buying and selling of information, products, and services over the
Internet. E-commerce includes several activities: trading of goods and services, delivery of
content online, electronic fund transfers, electronic share trading, electronic bills of lading,
commercial auctions, online sourcing, public procurement, direct consumer marketing, and after-
sales services (United Nations Economic Commission for Africa, 2006). E-commerce falls under
four main categories: business-to-business (B2B), business-to-government (B2G), business-to-
consumer (B2C), and consumer-to-consumer (C2C). E-commerce applications were first
developed in the 1970s. Innovations such as the Electronic File Transfer characterized E-
commerce at the time (Turban et al, 2008). EFT was used to route funds from one firm to

4
another. Following EFT was the Electronic Data Interexchange (EDI). Modern E-commerce
actually began with the commercialization of the Internet and the World Wide in the early 1990s.
Since then, it has been a revolutionary phenomenon in the global economy.

E-commerce has replaced the traditional form of business-to-consumer phenomenon which

involved the buyer, seller, retail shops, catalogues, etc. Its main functions include process
management, service management, communication and transportation of products and services
(Barton, et al, 2004). Turban et al (2008) defined E-commerce from several perspectives as
illustrated below: From the business perspective E-commerce is doing business electronically
where information is substituted for physical business processes. From the service perspective E-
commerce is used as a tool that delivers goods and services in a cost-effective and fast way.
Stakeholders in the market (governments, consumers, firms, etc) are beneficiaries of this service.
From the learning perspective E-commerce enables online training and education in educational
institutions, business and other organizations. From the collaborative perspective, EC provides a
medium for interorganizational and intraorganizational collaboration. Technology has been
advanced through collaboration in E-commerce. The creation of the Linux operating system is an
example of collaboration in E-commerce. From the community perspective, E-commerce
provides medium using Web 2.0 technologies for learning, transaction, and collaboration.
Facebook, MySpace are all examples of how E-commerce can be viewed from the community
perspective.

E-commerce and E-business (a newer term) have been used interchangeably by

individuals whenever they refer to E-commerce transaction. As Turban et al (2008) define it, “E-
business refers to a broader definition of EC, not just the buying and selling of goods and
services but also servicing customers, collaborating with business partners, conducting e-
learning and conducting electronic transactions within an organization. Depending on the degree
of digitization, E-commerce can take several forms in terms of the product or service being sold,
the processes, and the delivery method. Products or services may be digital or physical.
Whichever way the product or service is processed and delivered determines the type of E-
commerce. A firm that is purely physical is referred to as a brick-and-mortar firm. A firm that
engages solely in E-commerce is known as a virtual or pure-play firm. Firms that use E-
commerce as a separate marketing channel are referred to as click-and-mortar firms. This paper
subsumes both the pure-play E-commerce and the click-and-mortar formats. The decision to
select these formats is based on access to the Internet and the delivery of products and services in
developing countries. Both the former and the latter are crucial to the implementation of a
successful E-commerce platform.

As mentioned above, the success of E-commerce is dependent upon access to the

Internet. Access to the Internet has been a major topic in discourses involving ICT penetration in
developing countries. Since its advent and advancements in other related technologies, the
Internet has experienced significant growth. Developing countries which had in previous years
not been able to access the Internet are now able to do so. According to the 2009 UNCTAD
report, there has been an increase in access to the Internet since 2003. This increase is a result of
achievements that have been made in the areas of fixed and mobile telephony, Internet and
broadband technologies. The report indicates that despite the slight decline in fixed telephone
subscriptions mobile and (to a lesser extent) Internet usage continue to expand rapidly in most

5
parts of the world. But it further indicated that despite the progress that has been made in global
access to the Internet, there is a widening gap between high income and low income countries in
the area of broadband connectivity.

Another report from UNCTAD delivered n 2001 illustrates that there are three stages of
E-commerce readiness. These three states are listed below:

• Readiness – This the beginning stage of the E-commerce development. The readiness of
people, businesses, infrastructure, and the economy is crucial at this stage

• Intensity – The second stage of E-commerce development. It deals with the intensity of
with which ICT are utilized within a country. It also involves the extent to which E-
commerce activities are undertaken.

• Impact – The last stage of E-commerce readiness is the “impact” stage which is when the
impact of E-commerce is felt on the national economy and business activities.

In Liberia none of the stages mentioned above has been fully achieved. The relative
progress made in ICT has not included E-commerce. Business continues to be done in the
traditional way which denies the country of the potential opportunities that could be gained from
the global market. The main reason for such a limitation can be attributed to slow pace with
which the Internet has penetrated the country. Very few Liberian-owned websites including,
TLCAfrica.com, CallLiberia.com, FrontPageAfrica.com, RunningAfrica.com, etc., provide
online services such as e-news, advertisements and E-entertainment. None of these firms operate
as pure-play E-commerce websites that provide secure online transaction with financial
institutions in Liberia.

While there are better prospects of E-commerce as an economic development vehicle in a

developing country like Liberia, it is the potential creator of several problems. The observation
made by Uzoka and Seleka (2004) that E-commerce creates problems of internationalization
clearly illustrates an example of a problem that E-commerce presents. The study by Uzoka and
Seleka (2004) further argued that since E-commerce involves buyers and sellers from different
countries, there is certainly the possibility of ethical, moral, and cultural problems. The issue of a
complicated tax collection and cut-throat competition were also part of that study illustrating
furthermore, the plethora of problems that must be subsumed prior to an E-commerce
implementation.

There is growing misconception about the impact of E-commerce in African countries.

Many Africans believe that E-commerce is a tool to facilitate commerce or business transaction.
But this is not so as the UNCTAD report of 2002 argued. “E-commerce”, the report argues,
“matters because it allows enterprises to generate efficiency gains at all stages of their
production and distribution processes.” The report continues that, “it is these gains, made
essential through the adoption of B2B and e-business practices, that count for development,
because they translate into improved competitiveness for enterprises and higher levels of
productivity, and hence incomes for the economy as a whole.” Awareness of the impact of E-
commerce is still lacking on the African continent. Moreover, the opportunities offered by E-

6
commerce are yet to be acknowledged by Africans (ECA Report, 2005). E-commerce is, after
all, still a relatively new phenomenon.

2.1 The ECA Report

According the ECA report (2006), the African private sector is made up of small and medium,
and micro-sized enterprises (SME) which are considered “potential engine of growth” in the
information economy. Yet, companies and the private sector in Africa have not actively engaged
E-commerce. The report mentions a survey done on the Republic of Ghana which indicated “that
about 65 per cent ICT companies,” in that country, “do not have a presence on the Internet.” The
report also mentions the increase in Internet usage in Morocco “from 20 per cent to 42 per cent
in 1999 but pointed out that only 8 per cent of businesses” use the Internet for online ordering. In
Mozambique, according to the report, E-commerce does not exist because there is a “lack of
suitable legal framework and security instruments, inadequate banking systems, poorly
developed telecommunications infrastructure beyond urban areas, and high rates of illiteracy”
(2005). As far as what needs to be done in Africa for E-commerce to succeed, the report listed
the rapid development of “human resources, greater attention to e-literacy among citizens, and
activities to build capacity to provide skills base among SMEs for E-commerce.”

The ECA report also referenced the growth in wireless technologies and the impact it has
had on developing countries. M-commerce discussed briefly above, according to the report, is
likely to have a significant impact on Africa (ECA Report, 2004). M-commerce or M-business is
any business activity that is conducted over a wireless telecommunications network or mobile
device (Turban, 2008). It can also be used for the main types of E-commerce such as business-
to-business (B2B), business-to-consumer (B2C), business-to-government (B2G), and consumer-
to-consumer (C2C).

2.2 Liberia’s neighbors’ E-commerce initiatives

Several countries in Africa especially West Africa where Liberia is located have already
engaged in E-commerce. Ghana recently initiated online commerce using eTranzact which
allows the transfer of money through mobile phones and the Internet (http://, eTranzact
revolutionizes, 2009 March). There are several other E-commerce activities taking place in
Ghana. In Nigeria, E-commerce adoption is slow but steady. Online money transaction has been
the main form of E-commerce activity occurring in that country (Economist Intelligence Unit,
2006). Sierra Leone which closely borders Liberia has also engaged in some form of E-
commerce activity through the SMS based mobile payment service that was launched by
MoreMagic and Splash (E-commerce journal, n.d.). There are several other African countries
that are in the process of adopting E-commerce. Further delineation of those countries
achievements remain outside the scope of this study.

2.3 A brief history of the Liberian situation

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 Liberia is a small country situated on the west coast of Africa. It is 43,000 square miles in
size and shares borders with the Cote d’ Voire, Guinea and Sierra Leone and the Atlantic Ocean.
Compared to the size of the State of Tennessee, Liberia was colonized by the American
Colonization Society as a solution to the problem of slavery and the incompatibility of races in
the 1800s (Almanac, 2008). In July of 1847, Liberia received its independence and became the
first free African republic with a government that modeled that of the United States government.

Since then, the country had been run by a one-party rule type government until it
experienced a military coup in 1980. The coup resulted to 10 years of tyranny and corruption
which also led to a civil war that began in 1989. The civil war led to the election of yet another
dictator and corrupt leader thereby prolonging the suffering of the Liberian people. Fortunately,
after 14 years of a devastating civil war, tyranny, and corruption, the United Nations (UN) and
the Organization of African Unity (OAU) were able to restore peace and stability in the country.
This move ushered in a new and democratically elected government headed by a Harvard trained
public administrator, Mrs. Ellen Johnson Sirleaf. Hitherto this writing of this paper, the country
has enjoyed relative peace and stability and has been making efforts to rebuild and create better
socio-economic conditions for its citizens (U.S. Department of State, 2009).

2.4 Some Data on Post-War Liberia

The table below illustrates some important geographic and economic data of post-war Liberia.

Geographical and Economic data of Post-war Liberia.

Indicator Data Comments
Areas 43,000 Sq miles
Population 3.9 Million Based on UN-2008
Language spoken English Along with 26 dialects
Literacy 20% CIA World Factbook-2003
GDP $473.9 million IMF, 2007
Real GDP growth rate 9.6% 2008, projected
Per capita GDP $150
Economic activity Agriculture: 76%, Industry, CWF, 2002
5.4%, Services, 17.7%
Monetary Unit Liberia dollar
Main exports Diamonds, iron ore, rubber,
timber, coffee, cocoa
Exports $1.197 billion fob
Export partners Germany 40.1%, South
Africa, 12%, Poland,
11.7%, United States, 8.5%,
Spain, 8.2%
Imports $7.143 billion f.o.b.
Import commodities Fuels, chemicals,
machinery, transportation

8

Import partner
Debt (external)
Economic aid (recipient)
Unemployment rate
Table 1
equipment, manufactured
goods, rice, etc.
South Korea, 43.2%,
Singapore 15%, Japan
12.8%, China, 8.2%.
$1.8 billion FrontpageAfrica 4/17/2009
$236.2 million
85%

The Sirleaf-led government in Liberia has made strides in some areas. Several new
businesses have been opened, roads are being built, schools are being built and opened, markets
area also being built, and so on. Basic necessities such as running water, electricity, and
telecommunications are being restored partially. Of all these utilities telecommunication has
improved dramatically and has been a major source of revenue for the country. The
telecommunications sector which includes ICT has achieved gradual but significant progress in
the past 10 years. Cellular phones have become the primary and most ubiquitous form of
communication. Internet penetration has been very slow, although progress is being made. Many
organizations (NGOs), private firms, businesses and the government have access to the Internet
through satellite communications technologies.

2.5 -ICT Infrastructure

Like many developing countries, Liberia lacks the appropriate ICT infrastructure to
support an E-commerce adoption. The 14-year civil crisis exacerbated the already dilapidated
and antiquated telecommunications infrastructure which previously existed. Currently, there is
but a limited ICT infrastructure which is supported by satellite communications technologies.
Mobile telecommunications is the most ubiquitous form of communication and has experienced
a successful penetration in the Liberian society. Liberia has become the quintessential wireless
telecommunication market where communications is mostly done using cellular phones. The
country currently has four main mobile operators which are in competition for customers.
Internet services are available through various ISPs and the mobile networks use GPRS, EDGE,
and WiMAX technology. IT on the other hand has been slow to penetrate the Liberian society.
Despite the slow penetration there has been relative and minimal improvement over the years.
Several Internet Services Providers operate in the country provide access to the Internet via
satellite communications. The agencies of the government that govern this sector: LIBTELCO
(national operator), Liberia Telecommunications Authority (regulator) and the Ministry of Postal
Affairs (policy maker). The country’s national operator, LIBTELCO which is government-
owned currently provides limited services although there are plans to connect to a fiber optic
cable in 2011(LIBTELCO’s Web site).

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 Figure 1 - LIBTELCO coverage map

Currently, all internet connections are done through VSAT connections, and they’re not
reliable and the cost to maintain them is prohibitive. Liberia is believed to have an estimated 200
Internet cafes in the capital city of Monrovia. There is however, no literature or evidence to
prove this as the country’s regulators are yet to implement policies and strategies to govern the
ICT sector.

3. EXPLANATION OF THE PROJECT

As mentioned above, the overall goal of this initiative was to investigate the adoption of
E-commerce in Liberia as a part of an economic development initiative. Access to a Web
medium, online transaction with banking and financial institutions, and the incorporation of M-
commerce were primarily desired. Several Liberians both local and in the Diaspora were
included as participants. The Internet and its protocols, along with other Web applications were
leveraged in this initiative and the name “ETradeLiberia.Com” was selected for the E-commerce
site. Expectations of the final product from this initiative are listed as follows:

• To establish an Internet-based medium that links Liberia commercially to the global

economy for economic development

• To level the playing field for farmers, market women, small/medium scale
entrepreneurs and exporters to be able to trade their products locally and globally

• To drastically reduce the effect of poverty in Liberia by providing a medium for small
business owners who do not have the real estate to run a brick and mortar business.

• To Increase the rate of Internet usage and penetration in Liberia

• Implement new E-commerce business models that subsume the current infrastructures
of the country as well as the needs of the society.

• Use E-commerce as a gateway to bridge the gap between E-commerce systems in

developed countries and developing countries

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3.1 Materials, Methods and Processes

Applications and tools utilized in this effort are listed in the table below.

Project Details

Project Information
Project Name ETradeLiberia
Project URL www.ETradeLiberia.com
Year 2009
Country Liberia
Cities MONROVIA
Operational areas Main cities (Monrovia, Gbarnga, Buchanan,
Voinjama, Zwedru)
Software used Macromedia Dreamweaver, Microsoft Visio,
Freeway E-commerce software, Microsoft
Windows XP, Ubuntu Linux (Client & Server),
Apache Web server, PHP 5.0, MySQL 5.0,
Internet Explorer 7.0 Mozilla Firefox.
Hardware (Server) Dell Optiplex GX270, 1 GB of memory, 2.60
GHz, 160 GB hard drive
Hardware (Client) Gateway E-2300, Celeron 2.66GHz, 1 GB of
memory, 40 GB hard drive
Table 2

3.2- Networking Infrastructure

The networking infrastructure utilized included a home network running at 2 Mb

downstream and 1.5 Mb upstream high-speed (DSL) connection to the Internet. Connection to
the outside world was done through a cable modem supplied by the local telephone and Internet
Services Provider. The network is interconnected by three 8-port switches which connect a group
of computers running Ubuntu 9.10 Server Edition, four client computers running Ubuntu Linux,
Mac, and Windows XP clients.

3.3 - Installation of Applications

Macromedia Dreamweaver and Microsoft Visio were used to design the original
prototype for this effort as well as the diagrams in this paper. A conventional installation of
Ubuntu Linux 9.10 Server Edition was done along with Apache and all accompanying add-ins.
MySQL 5.0 and PHP 5.0 were installed along with all necessary protocols needed to run the
server during this process. A subsequent installation of Freeway E-commerce solution was done.

11
Client computers were updated with patches and all necessary plug-ins needed to seamlessly run
an E-commerce platform.

3.4 - Features of the portal

ETradeLiberia.com was designed to provide services that are common to the

quintessential E-commerce platform as well as other features that increase the functionality of
the website. The table below lists these features.

Features of ETradeLiberia.com
Feature Status
Sellers page Available
Buyer’s page Available
24/7 chat messenger Available
Phone numbers to call for support and questions- Helpline Available
1 web pages for each seller Available
Free Online store with full functionality for sellers Available
Secured Payment and Transaction System using Ecobank’s VISA Electronic cars Available
Free E-mail address for sellers Available
Capability of searching for products Available
Product Listing Available
Capability to create a virtual exhibition centre Available
Shopping cart and product 'look and feel' are themeable Available
Create taxes, charges and discounts Available
Invoice generation and email notifications Available
Transaction and payment workflows Available
Reports and sales summaries Available
Customers can review their order history Available
Table 3

Interface of ETradeLiberia.com (prototype)

Figure 2

3.5 - Payment Method- Ecobank’s Visa Electron card

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 The use of visas, Mastercards, and other form of payments for online transactions are yet
to reach Liberia. Online payment is one of the imperatives of an E-commerce website and this
has been a major challenge in running an E-commerce website, not only in Liberia, but other
African countries endeavoring to adopt E-commerce. Ecobank, one Africa’s premiere banks,
offers several banking options in the West African sub-region. One of those options is the use of
Visa Electron cards which is the selected option used in this initiative. The Visa Electron card
allows customers in eight West African countries to access more than 16, 000, 000 Points of Sale
Terminals and over 840, 000 ATMs around the world (Ecobanks Web site, www.Ecobank.com ).
The Ecobank Visa Electron and Debit Card can be used for payment of goods and services at
commercial facilities carrying the Visa Electron signs visibly. The card can also be used on a
24-hour basis. The problem with the Visa Electron cards is that they are not yet available in
Liberia. Currently the only card available in Liberia is Ecobank’s regional card which cannot be
used for the purchase of goods and services. For a more extended and diverse use of the regional
card, more research will have to be done; obviously, that is beyond the scope of this paper.

There are few options that have been made available through advancements in ICT which
can supplement an E-commerce initiative. Mobile technologies, which have higher penetration
in developing countries than information technologies, continue to enhance M-commerce. For
example, in Liberia, the International Bank in 2008 (The International Bank of Liberia, 2008
May 7) introduced and launched the Small Message Services (SMS) for its customers. This
feature allows customers to access their bank account using mobile phones (M-Commerce).
Other countries including South Africa have new and unique methods of online/mobile
payments. For example, an E-commerce transaction mechanism known as Wizzit that works
with South African E-commerce websites also connects to South African banks (Hersoman,
2007). In Kenya, another form of online transaction known as Sambaza is used to make mobile
payments although it does not provided for E-commerce. Zambia National Commercial Bank
(ZANACO) and other banks in that country have been modernizing their services to their
customers by offering E-commerce services (Malakata, 2005). These are just few African
countries that have made strides in E-commerce.

3.6 - E-commerce Workflow- Customer transaction

The diagram above illustrates how a regular transaction session is done on

EtradeLiberia.Com. The process begins with the SELLER advertising the item to be sold on the
ETradeLiberia.Com. THE CUSTOMER visits the website, locates and item and decides to
purchase that item. The CUSTOMER then places the ORDER using the site’s shopping cart. The
ORDER is processed via the bank (Ecobank). A process completion NOTIFICATION will be
sent to the buyer and seller as soon as payment processing is done. Information from this process
is also stored in E-TradeLiberia.com customer information database. The NOTIFICATION
process “triggers” the SELLER/STORAGE to ship or deliver the item to the CUSTOMER. The
transaction ends when the customer receives the item. See work flow chart below:

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 Figure 3

3.6. 1 The M-Commerce option

The M-commerce option follows the same workflow pattern as illustrated in the chart
above. However, in the agriculture sector, there may be a slight difference in the delivery process
as not many farmers in the rural areas have the capacity to make deliveries. In this case, the
CUSTOMER will PICKUP the item instead of the SELLER performing DELIVERY.

Figure 4

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 The following diagram illustrates a topology of how an M-commerce option works. The
diagram is tailored to suit the agriculture sector which potentially a significant player in an E-
commerce adoption in Liberia.

Figure 5

In the diagram above, mobile phones are used to perform business transaction over the
Internet. M-commerce have garnered tremendous attention and will continue to be the focus of
E-commerce adoption developing countries.

4. RESULTS AND DISCUSSION

ETradeLiberia.Com E-commerce website was hosted temporarily by the researcher with

the domain name and other services registered with Godaddy.com. All installation and
configuration were completely done although there were many challenges. Eight participants
were selected representing a diverse group of individuals residing in three countries: Liberia,
Ghana, and the United States of America. Below are results from culled from the exercise:

• First participant: Participant I was the owner of wholesale building materials store in
Monrovia, Liberia. His goal was to list his business on the Internet to gain global
exposure. Participant I’s targeted was Liberians living in the Diaspora with intentions to

15
 build homes in Liberia. He had indicated that listing on the Internet via
ETradeLiberia.com was cost-effective and a way to bring in new business opportunities.

• Second participant: Participant II was a small business owner who owned a market stall
at the General Market in Monrovia. The lack of real estate and the cost of obtaining real
estate when it became available prevented him from bringing most of his goods to the
market. Instead the goods were stored at home which caused a longer turnaround time. In
using ETradeLiberia.com, Participant II discovered trading via ETradeLiberia.Com was a
better and cheaper alternative to use in marketing his goods. Turnaround time would be
short and savings will increase. This required a readjustment in the business model which
ultimately gravitated toward delivery to consumers than being stationed at the stall.
Participant II indicated that instead of paying $80 USD a month for a market stall, he
would rather pay the amount of $75 USD bi-yearly on ETradeLiberia.com where all of
his goods can be exposed to a wider market. He concluded that this approach would save
him up to 40% of the amount spent using the previous business model.

• Third -participant: Participant III (the researcher) resides in Lehigh Acres, Florida. This
participant banks with the Bank of America which is based in the United States of
America. Participant III began the transaction by visiting www.ETradeLiberia.com and
locating a product. After deciding which product to purchase, he proceeded to check-out
where payment had to be made using a VISA card. Upon entering the VISA card details,
Participant III proceeded to the final stages of the transaction and receives a “thank you
for shopping with us” notification. A subsequent email was sent to Participant III’s mail
box to confirm the completion of the transaction. Participant one reported that he did not
notice any difference in the payment process since he used a VISA card. However,
wondered what the delivery service would be like since the product was being purchased
from a store in Monrovia (capital city) to be delivered to the suburban areas of Monrovia.

• Fourth participant- Participant IV reported that access to the site as well as locating
items were easier than on some of the sites used previously. Selecting products and
moving to the check-out section of the page produced no challenges. The use of a VISA
card from the United States which originally was a concern was seamless. The final
transaction provided a receipt and follow-up email. It did not appear as if the transaction
was done in the USA or in Liberia.

• Fifth participant from Monrovia, Liberia: Participant V is a resident of Monrovia who

visited the ETradeLiberia.Com and created an account. A week later, Participant V
returned to the website and began a new transaction. The transaction required the use of a
VISA electronic card since the regional card would not work. Participant V reported that
the transaction was a success, yet complained about the speed of computers at the
Internet café used.

• Sixth participant- Participant VI used a cellular phone to access ETradeLiberia.com to

purchase a bundle of zinc from a local building material store. Participant VI had
previously been informed by the vendor that VISA card offered by EcoBank Liberia were
accepted and that trade made on the Internet would not present any problems. According

16
 to this participant, everything went as smoothly as was promised. He however, reported
that there was a delay in the delivery process.

• Seventh participant: Participant VII’s results were different. The participant logged on to
the website in search of agricultural products. Even though the products were available,
efforts to pay using a VISA card from Ecobank provided several errors. These errors
indicated that the seller’s account at Ecobank Liberia would not accept the transaction. A
further inquiry done by both seller and participant indicated that the transaction erred
because the seller’s account with Ecobank was not processed to accept online
transactions with ETradeLiberia.com

• Eight Participants: Participant VIII: Participant VIII is a farmer in Zwedru, Grand

Gedeh County who has produce to list on ETradeLiberia.com. The participant has an
account with Ecobank Liberia which accepts online transfers. Since there is little or no
electricity in the rural sectors of Liberia, Participant VIII resorts to the use of a mobile
phone which has access to the Internet. Participant VIII used the text features of the
mobile phone to submit information about farm products that were to be listed on
ETradeLiberia.Com. This exercise was carried simply to test the M-commerce aspect of
the project. The participant successfully completed the task. No transaction between the
participant and a seller was done during this exercise.

All users were instructed to carry on normal E-commerce transaction which involved the
selection of products and subsequent purchase of that product. The payment portion of the
ETradeLiberia.Com did not experience as many problems as was envisioned since Ecobank’s
VISA Electronic card was recognized in all of the tested transactions. Obtaining a VISA card
with Ecobank may be a challenge for potential customers who many not have the resources
required to own a VISA card.

A summative assessment of all participants indicated that positive feedback and good
experience with the initiative. All participants indicated that this was a better medium for
commercial activities because it ensures global participation and competitive prices.

5. COST OF ETRADELIBERIA.COM

The estimated cost of this project is being set at USD$150,000. The amount includes
salaries for personnel (Liberian salary standard), purchase of equipment, travel cost, training, etc.

Estimated cost

Expense Description Estimated Cost

Resources used in planning
Expense I and organizing project $1,000
Software used, domain
Expense II registration , transaction $

17
 process, dBase, etc
Expense III Travel costs $5,000
Expense IV Miscellaneous $2,000
Total estimated cost $8,000
Table 4

6. - CONCLUSION

Although E-commerce has been well established in the more developed and
industrialized parts of the world, the same is not true for developing countries in general. Liberia,
which is one of the world’s 48 least developed countries according to a United Nations
Development Program and the World Bank report, is yet to adopt E-commerce. The slow pace of
ICT penetration in Liberia has been a major hindrance to E-Commerce adoption. Moreover, the
Internet savvy portion of the population are primarily young unemployed men and women who
cannot afford to make purchases or own a VISA card needed for an E-commerce transaction.
Only an optimistic view of the country’s economic and political future would subsume these
young people as potential customers. There are other challenges that need to be addressed.
Taxation, security, usability in a highly illiterate society and access the Internet are but few of
the many challenges that still exist. Payment methods in most parts of the country are still
largely being done by cash. Another challenge that Liberia faces is the dilapidated roads which
connect various parts of the country. Delivering goods to rural areas will present a serious
problem which may hinder an adoption to E-commerce.
Three quintessential components for E-commerce were identified in this paper; a
catalog/website which lists products and services that are being sold; a shopping cart which
allows customers to select the products they want to buy; and a payment mechanism that allows
buyers to finalize transaction by making payment online. All of these components parallel those
advocated by Abdullah (2009). Furthermore, an E-commerce work-flow was explained and
illustrated pointing out transactional operations of ETradeLiberia.Com. In addition to an
Internet-oriented E-commerce platform, a mobile commerce (M-commerce) option was
incorporated and illustrated, based on the study done by Best et al (2007). The study which
indicated that mobile technologies often outpace Internet technologies in conflict environments
such as Liberia parallels the argument made by Howard (2008), regarding sophistication of the
mobile sector. Both arguments certainly and remotely illustrate that the success of E-commerce
in developing countries cannot be achieved in the absence of M-commerce.
The results from this initiative based on reviews by participants clearly indicate that there
is a need for E-commerce adoption in Liberia to enhance its economic recovery process. Both
sellers and buyers, the results indicate, share consensus on the impact that an E-commerce
adoption will have on Liberians living in Liberia as well as those in the Diaspora. The
agriculture sector on which the country significantly relies will gain a new medium for farm
products to be marketed. Building on the microfinance initiatives used in Cameroon (Getting E-
commerce to Africa, 2001 March), Liberia can leverage an E-commerce/M-commerce to reduce
poverty and enhance the living conditions of its people. With unemployment at astronomical
heights, Liberians have been forced to engage in small businesses or small, medium, and micro-

18
sized enterprises (SMEs). These businesses have the potential to drive the Liberian post-war
economy if they are approached in ways that are unlike the traditional ways on which they are so
dependent.
There are several challenges that need to be addressed before a fully functional and
globally competitive E-commerce platform is adopted: political stability, decreased rate of
illiteracy, better payment mechanisms; good infrastructure, and above all, low cost access to a
fiber optic cable for high-speed connection to the global market. This paper has identified that
Liberia can in fact adopt E-commerce as a national development initiative. There is, however, a
need for more research in other areas including cyber-security, cyber-awareness, online
transactions, and so on, to further implement an improved and advanced E-commerce platform
that will benefit the country as well as other developing countries.

19
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