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LDC Services Exports: Trends and Success Stories

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Paper focuses on recent trends in the Least Developed Countries ( LDCs) exports of commercial services targeted at trade support institutions and the Aid for Trade community. It describes the LDCs current services export performance based on the UNCTAD-WTO Trade in Services Statistics for 2011 and provides a collection of services exporter case stories featuring case studies from Bangladesh, Cambodia, Rwanda, Senegal, Uganda, Vanuatu. The paper discusses lessons learned on the drivers of competitiveness in services and offers initial suggestions for what needs to be done to enhance LDC services enterprises' competitiveness.

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International Trade C ntre
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F: +41 22 733 4439
E: itcreg@intrace .org
ww .intrace .org


Postal address
International Trade C ntre
Palais des Nations
1211 Geneva 10, Switzerland


Street address
International Trade C ntre
54- 6 Rue d Montbrilla
1202 Geneva, Switzerland


The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations.


technical
paper


lDc SerViceS eXpOrtS


trenDS anD SUcceSS StOrieS





LDC SERVICES EXPORTS


TRENDS AND SUCCESS STORIES





LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


ii SC-13-233.E


Abstract for trade information services


ID=43032 2013 S-15.00 LDC


International Trade Centre (ITC)
LDC Services Exports: Traends and Success Stories.


Geneva: ITC, 2013. vi, 30 pages (Technical paper)
Doc. No. SC-13-233.E


Paper focussing on recent trends in the Least Developed Countries ( LDCs) exports of commercial
services targeted at trade support institutions and the Aid for Trade community - describes the LDCs
current services export performance based on the UNCTAD-WTO Trade in Services Statistics for 2011;
provides a collection of services exporter case stories; features case studies from Bangladesh,
Cambodia, Rwanda, Senegal, Uganda, Vanuatu; discusses lessons learned on the drivers of
competitiveness in services; offers initial suggestions for what needs to be done to enhance LDC
services enterprises' competitiveness.


Descriptors: Trade in Services, Least Developed Countries, Tourism and Travel Services, Business
Services, Exporters, Case Studies, Bangladesh, Cambodia, Myanmar, Rwanda, Senegal, Uganda,
Vanuatu.


For further information on this technical paper, contact Jane Drake-Brockman, Senior Services Adviser,
drake@intracen.org and Aissatou Diallo, Senior Officer, Trade in Services Diallo@intracen.org




English


The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United
Nations.


ITC, Palais des Nations, 1211 Geneva 10, Switzerland (www.intracen.org)


Views expressed in this paper are those of consultants and do not necessarily coincide with those of
ITC, UN or WTO. The designations employed and the presentation of material in this paper do not
imply the expression of any opinion whatsoever on the part of the International Trade Centre
concerning the legal status of any country, territory, city or area or of its authorities, or concerning the
delimitation of its frontiers or boundaries.


Mention of firms, products and product brands does not imply the endorsement of ITC.


This technical paper has not been formally edited by the International Trade Centre.


Digital images on the cover: © ITC


© International Trade Centre 2013


ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short
extracts of this technical paper may be freely reproduced, with due acknowledgement of the source.
Permission should be requested for more extensive reproduction or translation. A copy of the reprinted or
translated material should be sent to ITC.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E iii


Acknowledgements


Without the contributions to this document provided by the services export enterprises showcased, this
project could not have come to fruition.


ITC thanks the following companies for their contribution to this paper:


ACLEDA Bank PLC


AGIR Promouvoir


Bugema University


Busoga University


Evergreen Limited


Islamic University in Uganda


Kampala International University


Makere University


Nascenia Limited


Premium Contact Center International


Synesis IT Limited


Wings Over Cambodia


ITC also wishes to thank and acknowledge the special assistance provided by:


Department of Tourism and Department of Industry under the Ministry of Trade, Industry, Commerce
and Tourism, Vanuatu


Uganda Export Promotion Board


Permanent Mission of Rwanda at the UN and the WTO in Geneva


Finally, ITC wishes to thank the WTO Secretariat and others who provided feedback on the overall
document.


Any errors or omissions remain the responsibility of the authors. The opinions expressed are similarly
those of the authors and do not necessarily reflect the views of the ITC.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


iv SC-13-233.E


Key Findings


Without exception, all of the LDCs (for which Balance of Payments data is available in 2011 in the
UNCTAD-WTO trade in services database), export commercial services. In addition, of the LDCs for which
no data exists for 2011, data for pre-existing years shows that all of them have services export capacity. As
a group, moreover, the LDCs export a highly diversified set of services, recording exports in all ten
categories of services commonly recorded in the Balance of Payments.


LDCs typically run a deficit in the services account, but as a group they tend to record a surplus specifically
in Travel, reflecting the importance of in-bound Tourism in their economies.


Nearly one quarter of LDCs are net exporters of services. While Tourism is usually the major explanatory
factor, it is not the only one. All of the net services exporters have a diversified set of services exports.


LDC commercial services exports (i.e. excluding government services n.i.e.) more than doubled from
US$ 9 billion to US$ 22 billion in the period 2005-2011, growing much faster in value terms over that period
(138%) than total world commercial services exports (70%). LDCs total exports over this period grew
slightly faster, at 142%.


The LDC share in total world commercial services exports is consequently increasing, albeit from a low
base. In 2011, the LDC group earned a 0.5% share in world commercial services exports. This compares
with a 1% share of LDCs in total world trade.


For as many as half of the LDCs, services exports as a share of total exports are well above the global
average. But for the LDC group as a whole, commercial services account for only 10% of total exports -
approximately half the global average - and the share of services in total exports is lower than a decade
ago. The potential is clear.


In addition, some LDCs are engaged in exporting Other Business Services, one of the fastest growing
sectors of world trade today, which includes for example professional, technical and IT-enabled B2B
outsourcing services. Despite rapid growth of the sector in these countries, this growth is currently too
concentrated in only a few LDCs for it to have yet achieved any relative gain as a percentage of total LDC
services exports.


The contribution of services exports to potential growth in LDC GDP is mixed. On the positive side,
services exports are making a steadily increasing contribution to GDP value-added, but the contribution is
still below the world average. More importantly, it is well below the contribution from services being
experienced even in the World Bank’s Low Income Group, for which services exports contribute more to
GDP value-added than the world average.


More needs to be done to ensure that LDCs can benefit from participating more consistently in global
services exports. This is especially important given emerging evidence of the powerful link between
services sector development and both GDP growth and poverty reduction, and the development benefits of
higher value-added, skill–intensive activities.


The services export stories highlighted in the study provide some insights into what factors are relevant in
driving success and what more might be done to enhance LDC services competitiveness.


Many of the steps to be taken call for action within LDCs themselves. Sustained stakeholder consultation
and policy focus on ensuring an enabling regulatory environment for business is key. Human resource
development is similarly fundamental. Digital infrastructure and interoperability of standards are pre-
conditions for modern IT-enabled business services. Openness to foreign investment is central to export
financing and access to global services value chains.


Some of these issues can be addressed through a reinforced approach to services productivity issues in
global Aid for Trade efforts. ITC’s reinvigorated Trade in Services Programme is designed to help LDCs
achieve development through increased export of services.


ITC’s specific contribution to Aid for Trade in Services is to activate, support and deliver technical
assistance in areas related to services competitiveness and services export development.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E v


Contents


Acknowledgements ...................................................................................................................... iii


Key Findings ................................................................................................................................ iv


Introduction and objectives ........................................................................................... 1


Part A: LDCs’ commercial services export performance ............................................ 2


1. LDC commercial services exports ........................................................................................ 2


2. Role of services trade in LDC development.......................................................................... 6


Part B: Case studies ....................................................................................................... 8


1. Bangladesh .......................................................................................................................... 8


1.1. Services profile ............................................................................................................................ 8


1.2. Nascenia Limited (www.nascenia.com) ...................................................................................... 9


1.3. Synesis IT Limited (www.synesisit.com.bd) .............................................................................. 10


2. Cambodia .......................................................................................................................... 11


2.1. Services profile .......................................................................................................................... 11


2.2. ACLEDA BANK Plc. (www.acledabank.com.kh) ...................................................................... 12


2.3. Wings Over Cambodia (www.wingsovercambodia.com) .......................................................... 13


3. Rwanda .............................................................................................................................. 14


3.1. Services profile .......................................................................................................................... 14


3.2. VubaConsulting LLC (www.vubaconsulting.org) ...................................................................... 15


4. Senegal .............................................................................................................................. 16


4.1. Services profile .......................................................................................................................... 16


4.2. Premium Contact Center International (www.pcci.fr/) ............................................................... 17


5. Uganda .............................................................................................................................. 18


5.1. Services profile .......................................................................................................................... 18


5.2. Tertiary education ..................................................................................................................... 19


6. Vanuatu ............................................................................................................................. 20


6.1. Services profile .......................................................................................................................... 20


6.2. Evergreen Limited (www.evergreenvanuatu.com) .................................................................... 22


7. Conclusion ......................................................................................................................... 22


Part C: A framework for enhancing competitiveness in services ............................. 24


References ............................................................................................................... 27


Appendix I LDC commercial services exports and imports, 2011 ...................... 29


Appendix II: LDC commercial services exports composition, 2011 ....................... 30




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


vi SC-13-233.E




Table 1: LDC net commercial services exports, 2011 ............................................................... 3


Table 2: Commercial services export share in total exports, 2011 ............................................ 4






Figure 1a: Changing composition of world commercial services exports ...................................... 5


Figure 1b: Changing composition of LDC commercial services exports ....................................... 5


Figure 2: Commercial services export composition by country grouping, 2011 .......................... 6


Figure 3: Growing contribution of services exports to GDP ........................................................ 7






Box 1: SWOT analysis of Uganda’s tertiary education exports ............................................. 20


Box 2: Factors driving international competitiveness in services .......................................... 24


Box 3: Enterprise level competitiveness factors and capacity levers .................................... 25







LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 1


Introduction and objectives


This short collection of services exporter case stories was prepared for the 4th Global Review of Aid for
Trade held during 8-10 July 2013 in Geneva on the theme of “Connecting to Value Chains”.


Specifically, this document was designed as background for discussion at a panel session on “Aid for Trade,
Services and Global Value Chains – Opportunities for Least Developed Countries”.


The aim of this paper is to provide a basis for understanding services exports of Least Developed Countries
(LDCs). The data shows that LDCs do export services and some, indeed, are net services exporters
contradicting commonly held assumptions that export opportunities in trade in services are marginal in the
trade aspirations and development trajectory of LDCs.


It is important to have this and more information on LDC exports in the context of the discussions underway
in the World Trade Organisation (WTO) on operationalizing the LDC services waiver which was adopted at
the WTO Ministerial Meeting in December 2011.


To provide this basis for the discussion, this document has three parts.


Part A presents and highlights key take-aways from an initial look at LDC services export and import
data. Balance of payments data is presented for all of the LDCs in appendices I and II.


Part B provides supplementary empirical and qualitative information as well as industry and enterprise
level material for seven selected LDCs. For each of the LDCs included, a short introductory Services
Profile is provided, followed by case studies showcasing one or two local services provider(s)
successfully exporting. The sample case studies chosen reflect a variety of overall services trade
performance, a variety of services sub-sectors and a variety of modes of delivery.


Part C discusses the lessons learned in the literature and in the field on the conditions underlying
services export competitiveness in LDCs. The section brings out some initial conclusions on what
needs to be done at domestic level to enhance LDC enterprises’ participation in the international
services economy and on the role Aid for Trade in general and the International Trade Centre (ITC) in
particular can play in this process.


The services exporter case studies cited are drawn from Bangladesh, Cambodia, Myanmar, Senegal,
Rwanda, Uganda and Vanuatu. The innovative entrepreneurs and enterprises showcased are but a modest
sample of the many services providers who are constantly innovating and engaging in international business,
providing employment and helping to raise living standards in the poorest parts of the world.


This document is an initial step in better understanding this complex topic. This brief study shows that
despite significant limitations, existing statistics on trade in services can be mined for useful insights into
trade and development policy.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


2 SC-13-233.E


Part A: LDCs’ commercial services export performance


1. LDC commercial services exports


This chapter describes the overall value, significance and composition of LDC services exports, points to
recent trends, and identifies areas of importance and focus for Aid for Trade.


1


The first key point to emphasise is that LDCs do export services.


Without exception, all of the LDCs (for which WTO trade in services data exists) exported services in 2011.
As a group, the LDCs achieve export earnings in all of the aggregate services categories for which data is
collected in the Balance of Payments: Travel, Transport, Communications, Computer and Information
services, Construction, Financial, Insurance, Other Business Services, Personal, Cultural and Recreational
and Royalties and License Fees.


At the individual country level, some LDCs show a more diversified range of export capacity than others. Six
countries, Bangladesh, Burundi, Cambodia, Mozambique, Sudan and Vanuatu record measured export
capacity in all ten aggregate categories of services exports, closely followed by Uganda, Ethiopia, Guinea


and the United Republic of Tanzania, which record exports in at least eight of the ten services categories.


For the LDC group as a whole, export success is common in Travel, followed by Transport and then
Communications. Thirty-eight LDCs also export Financial Services and/or Insurance services. The data also
reveals differences based on geography. For example, Asian LDCs are more likely to export
Communications services, while LDCs in Oceania are more likely to export Construction than LDCs in Africa
and are more likely to export Personal, Cultural and Recreational services than Asian LDCs. Interestingly,
38% of Asian LDCs manage to earn income from royalties and license fees, whereas only 19% of African
LDCs and 20% of LDCs in Oceania do so. These differences are interesting, though obviously should not be
over-emphasized, given the much higher number of LDCs in Africa.


With respect to the fast growing Other Business Services category, two Asian LDCs (Bangladesh and
Cambodia), three African LDCs (Burundi, Mozambique and Sudan) and one LDC in Oceania (Vanuatu)
record exports, though many more my actually be doing so, without this being recorded or compiled under
this category. Bangladesh and Cambodia are both net exporters of Other Business Services. Thanks to
exports of a wide variety of IT-enabled business services, Bangladesh is by far the strongest performer,
exporting four times more than Cambodia or Mozambique.


The second point is that, although as a group, LDCs typically import more services than they export,
LDCs as a group register a net surplus in Travel, largely reflecting the importance of in-bound
Tourism in their economies. Moreover, as shown in Table 1, nearly one-quarter of LDCs, i.e. nine out
of the forty-one countries, are actually net exporters of services. In 2011, these were, ranked
according to net services credits, Cambodia, Lao PDR, the United Republic of Tanzania, Vanuatu,
Liberia, Samoa, the Gambia, Nepal and Djibouti.



1
As a general disclaimer, it is well known that the Balance of Payments data on services is relatively unreliable compared with the data


on merchandise and does not tell the whole story. The data is especially thin for many developing economies, giving little information
disaggregated by sub-sector, bilateral pattern of trade or export destination. No services trade data is available in 2011 for Afghanistan,
Chad, Eritrea, Kiribati and Somalia. For eleven of the LDCs, there is no disaggregated data; this is the case for Benin, Burkina Faso,
Central African Republic, Guinea-Bissau, Madagascar, Mali, Mauritania, Niger, Togo and Tuvalu. It is important, in making general
observations across the LDC group, and in presenting averaged data, to recall that every economy is different and that general trends
may not always be observable in any individual member of the group. The general data can nevertheless be mined for useful insights,
but primarily in highly aggregated categories. Rather than an exhaustive analysis, the purpose of this document is to present some
stylized facts which might help to generate interest and prompt the additional analysis required, both internationally and domestically in
the LDCs themselves. The Balance of Payments throws no light, moreover, on commercial presence abroad, and there is no data for
any LDCs on Foreign Affiliates Trade. The case studies presented in Part B are of special interest from this perspective, as they do
provide evidence of LDC activity on this front.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 3


Table 1: LDC net commercial services exports, 2011


Country


T
o


ta
l


S
e


rv
ic


e
s




T
ra


n
s


p
o


rt
a


ti
o


n


T
ra


v
e


l


C
o


m
m


u
n


ic
a


ti
o


n


C
o


m
p


u
te


r
&




In
fo


rm
a


ti
o


n


C
o


n
s


tr
u


c
ti


o
n




F
in


a
n


c
ia


l


In
s


u
ra


n
c


e


P
e


rs
o


n
a


l,
c


u
lt


u
ra


l


&
r


e
c


re
a


ti
o


n
a


l


R
o


y
a


lt
ie


s
&



L


ic
e


n
s


e
F


e
e


s


O
th


e
r


B
u


s
in


e
s


s


S
e


rv
ic


e
s




LDCs






       
Angola


 
     







Bangladesh


  
   


  



Benin


         


Bhutan
  


   








Burkina Faso


         


Burundi
  





  
  


Cambodia 


 


 
  





Comoros
 


    


  


Congo, Dem. Rep. of the
  


   
 


 


Djibouti  


       


Ethiopia
 


 


 


  


Gambia       
 


 


Guinea
  





 


  


Guinea-Bissau


         


Haiti


      


 


Lao People's Dem. Rep.       


  


Lesotho
  





 


  


Liberia 
 


       


Madagascar


         


Malawi
  


   
 


 


Mali


         


Mozambique
 


 


 
   


Myanmar
 


    


  


Nepal
 


    


  


Niger


         


Rwanda
 


        


Samoa 


 


     


Sao Tome and Principe
 


        


Senegal


         


Sierra Leone
 


    


  


Solomon Islands
 


    


  


Sudan
 


    


 


Tanzania, United Rep. of 


 


 


  


Timor-Leste
 


        


Togo


         


Tuvalu


         


Uganda
 


    
 


 


Vanuatu 



 


 



 


Yemen
 


        


Zambia
 


    


  




9 5 21 21 3 8 8 1 7 4 2


Source: UNCTAD- WTO Trade in Services Database.


NB: No disaggregated data is available for Afghanistan, Central African Republic, Chad, Eritrea, Kiribati, Mauritania, Somalia.





LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


4 SC-13-233.E


While Tourism receipts are the major explanatory factor for most of these countries, other services sub-
sectors contribute to the overall performance as well. Table 1 shows that, apart from Liberia, all LDCs with
net export positions, all export a diversified set of services. In terms of net export performance in sub-
sectors other than Travel, LDCs most frequently do well in Communications, Construction, Finance, and
Personal, Cultural and Recreational services in that order.


The third key point is that LDC commercial services exports more than doubled from US$ 9 billion in
2005 to US$ 22 billion in 2011, growing much faster over that period - at 138% - than total world
commercial services exports - at 70%. (Total LDCs exports grew slightly faster at 142%.)


UNCTAD-WTO trade in services data set out in appendix I shows that since 2007, LDC commercial services
exports have consistently grown significantly faster than the world average, and during the global downturn
dropped significantly slower; displaying an annual average growth rate of 15% compared with the world
average of 9%.


The LDC share in total world commercial services exports is consequently increasing. In 2011, the LDC
group earned a 0.51% share in total world services exports, up from 0.36% in 2005. (By comparison,
LDCs’ share of total world exports is 1%.)


In terms of the importance of services exports within total exports, however, LDCs are underperforming the
global average. Taking commercial services only, the global average services share in world exports in 2011
was 19%. For the LDC group as a whole, commercial services exports accounted for only 10% of total
exports, down from over 13% a decade ago.


At the same time for several LDCs, services play a far more important role in total exports. In the Pacific,
commercial services account for 46% of Tuvalu’s export earnings, 44% of Vanuatu’s and 43% of Samoa’s.
As shown in Table 2, commercial services account for 19% (the global average) or more of export earnings
for twenty out of forty-one LDCs.


Recent trends in the overall composition of services exports also deserve attention. The global evidence,
illustrated in Figure 1a, is that the traditional Transport and Travel sectors are diminishing in importance and
the other commercial services categories are increasing in relative importance, in particular the category
known as Other Business Services, which includes professional and technical services as well as other
rapidly growing IT-enabled intermediate business-to-business (B2B) services. Globally, Other Business
services account for nearly half of “Other Commercial Services” reflecting the growth of services outsourcing
industries and the emergence of global services value-chains.


Table 2: Commercial services export share in total exports, 2011




LDC average 10% Rwanda 27%


Tuvalu 46% Timor-Leste 27%


Vanuatu 44% Djibouti 27%


Samoa 43% Tanzania, United Republic of 25%


Comoros 39% Sierra Leone 24%


Gambia 38% Senegal 22%


Sao Tome and Principe 38% Togo 20%


Ethiopia 31% Solomon Islands 19%


Nepal 30% Cambodia 19%


Madagascar 27% Lao People's Democratic Republic 16%


Liberia 27% Haiti 16%


Uganda 27% Benin 16%
Source: UNCTAD-WTO Trade in Services Database.


It is important to recognize that neither of these global trends necessarily hold true for the LDCs. First, as
shown in Figure 1b, the traditional Transport and Travel sectors both continue to grow in relative importance
for LDC exports, the aggregate share of Other Commercial services has therefore declined from 32% in
2001 to 24% in 2011. So while Other Commercial services have grown to more than half of world
commercial services exports, they have declined to less than a quarter of LDC commercial services exports.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 5


Figure 1a: Changing composition of world
commercial services exports



Figure 1b: Changing composition of LDC


commercial services exports


Source: UNCTAD-WTO Trade in Services Database. Source: UNCTAD-WTO Trade in Services Database.




Second, despite the recent rapid growth of LDC Other Business services exports, this growth has not kept
pace with growth in Communications, so its share has declined slightly in the overall make-up of LDCs Other
Commercial services. The trend has turned in recent years and the LDC group has maintained its overall
market share in Other Business services since 2007. Despite this recent improvement, the total LDC market
share in Other Business services is distinctly lower in 2011 than it was at the beginning of the decade.


This is a wake-up call for the bulk of the LDCs and an alert flag to the Aid for Trade community. Other
Business services is among the fastest growing components of 21


st
century trade and the key to global


services value chain activity. LDCs are definitely participating in this knowledge-intensive trade, but their
overall performance is below average, with relatively small amounts being reported, compared with other
developing countries.


Figure 2 shows the LDC group is also lagging, as a group, behind the World Bank’s Low Income group, in
terms of the export contribution generated by Other Commercial services. This requires some explanation; in
essence both group’s performance is affected by individual out-riders within the group. The vast bulk of the
LDC group’s exports of Other Business services is accounted for by Bangladesh. For purposes of
comparison, Figure 2 illustrates the composition of services exports for Bangladesh as well as Cambodia,
the next strongest performer in Other Business services. Meanwhile the Low Income group’s performance
would seem similarly to be explained largely by Tajikistan, which has an even more pronounced profile.


23% 20%


31%
25%


23%


26%


23% 28%


0%


10%


20%


30%


40%


50%


60%


70%


80%


90%


100%


2001 2011


Other Commercial Services (e.g. finance, communications, other
business services)


Other Business Services


Travel Services


Transport Services


21% 24%


48%
52%


16%
10%


16%
14%


0%


10%


20%


30%


40%


50%


60%


70%


80%


90%


100%


2001 2011


Other Commercial Services (e.g. finance, communications,
other business services)


Other Business Services


Travel Services


Transport Services




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


6 SC-13-233.E


Figure 2: Commercial services export composition by country grouping, 2011




Source: World Bank Database.


2. Role of services trade in LDC development


World Bank research has shown that the services sector has become a dominant driver of economic growth
in developing countries delivering both GDP growth and poverty reduction. In 2011, the services sector
accounted for an average 49% of GDP in the low income countries and 47% in the LDCs.


Evidence is similarly emerging of the development benefits of higher value-added, skill–intensive services
activities. World Bank findings suggest that developing countries are shifting towards services sooner, and at
a lower level of per capita income, than had been the case in the traditional development trajectory. This
suggests that services could provide an alternative engine of growth, enabling some latecomers to
development to leapfrog what has been seen as the traditional route to development through developing
manufacturing first.


For the last few years, services exports have contributed a fairly static 6.2% to global GDP value-added.
Interestingly, as shown in Figure 3, the contribution of services exports is significantly higher for the Low
Income countries, at over 7% and on a steady upward growth path.


The LDCs group is on an upward, but much more gently sloping path. And the contribution to GDP from
services exports remains well under the world average. This sends another signal that while the LDCs are on
the services growth path, more needs to be done to help them catch up.


0%


10%


20%


30%


40%


50%


60%


70%


80%


90%


100%


Other Commercial Services (e.g.
finance, communications, other
business services)


Travel Services


Transport Services




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 7


Figure 3: Growing contribution of services exports to GDP




Source: World Bank Database.




This would seem especially important given the gap between the size of the services sector’s contribution to
the LDC group’s GDP - 47% - and the contribution of commercial services to total LDC exports which is only
10%. This gap points to a huge, untapped potential for LDCs in services trade.


The prospects, moreover, are improving. UNCTAD’s World Investment Report 2013 points out that despite
an 18% drop in global FDI in 2012, the services sector was the least affected and FDI inflows to LDCs hit a
record high, an increase led by developing country investors. Services industries continue to drive FDI
growth and LDCs remain key services investment destinations. This evidence confirms the importance of
inwards investment flows in enabling LDCs to connect into global services value chains.


This data points to a real potential, but the challenges are also great.


Parts B and C present some information on the challenges and how LDC companies and policy makers are
addressing them.


LDC


High income


Low income


World


Middle Income


4.0%


4.5%


5.0%


5.5%


6.0%


6.5%


7.0%


7.5%


8.0%


2005 2006 2007 2008 2009 2010 2011




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


8 SC-13-233.E


Part B: Case studies


The following sections provide more detail on the services export data for six selected LDCs complemented
by presentation of case studies of individual companies which have succeeded in exporting services. These
give additional insight as to on how LDCs have achieved export success.


1. Bangladesh


1.1. Services profile


With GDP growing steadily at an average annual rate of nearly 6% over the last decade, Bangladesh has the
potential to become an important global centre for services. In 2011, services generated 54% of GDP value-
added (above the LDC average) but accounted for only 28% of employment. 45% of Bangladeshis are still
employed in Agriculture.


Over the period 2005-2011, commercial services exports increased by 193% to US$ 1.4 billion. Along with
only 6 other LDCs for which the data exists Bangladesh has achieved export earnings in all ten of the
services categories measured in the Balance of Payments. Although the services account was in overall
deficit in 2011, many commercial services sub-sectors recorded important net surpluses, namely
Communications, Computers and Information Services, Other Business Services and Construction. Services
exports generated only 2.2% of GDP value-added in 2011.


Bangladesh ranks first among the LDCs in terms of Computer and Information Services exports, which
doubled between 2005 and 2010 to reach US$ 37.4 million in 2010 and almost doubled again to
US$ 60 million in 2011. The overall size of the information technology (IT) and information technology
enabled services (ITeS) industry in Bangladesh stood at approximately US$ 250 million in 2010,
demonstrating a 24% growth between 2008 and 2011.


2


The Government’s “Outline Perspective Plan of Bangladesh (2010-2021): Making Vision 2021 A Reality”
calls for a sustained focus on good governance, transparency and accountability as essential for an increase
in FDI into the services sector. The Plan also emphasises education and human resources development,
especially in emerging services activities such as accounting and financial services, graphics and textile
design, animation, engineering and project management.


The IT and ITeS sector offers a strong value proposition, with a large pool of trained engineers and
operators. According to UNCTAD’s Information Economy Report for 2012, Bangladesh has some 10,000
programmers engaged in on-line remote freelance contract micro-work, with earnings reportedly around
US$ 15 million a year. Given inefficiencies and delays in current payment systems in Bangladesh, these
earnings are largely unrecorded in the trade account, yet represent an amount equivalent to one quarter of
Bangladesh’s export earnings in this sector.


In its National Information Communications Technology (ICT) Policy (2009), the government committed to
the establishment of a prosperous software industry, to offer services based on ICT, e-commerce/e-business
and to ensure growth in the ICT industry with a view to meeting demand in domestic and international
markets.


The Government’s “Digital Bangladesh” initiative is also helping to promote infrastructure for enhanced
connectivity. Government authorities have demonstrated a determination to promote IT services industries
ensuring provision of cheaper bandwidth and alternate international cables, setting up technology parks and
providing tax holidays for export oriented industries.


Despite its growth potential, the sector faces considerable export challenges. Firms face evident difficulties in
identifying suitable clients and other business partners abroad and incomplete national branding efforts have
resulted in low visibility of Bangladesh as an offshoring destination in the international marketplace.


Bangladesh could position itself as a key offshoring location by enhancing delivery capability and skill
availability, lowering costs of operations, making focused investments in telecoms and IT infrastructure and
highlighting its success stories.



2
ITC-KPMG, Bangladesh Beckons: An emerging destination for IZ/ITeS outsourcing, 2012.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 9


ITC has been helping Bangladesh to do just that. The Netherlands Trust Fund II (NTF II) programme, funded
by CBI, the Ministry of Foreign Affairs of the Netherlands, is supporting the IT and ITeS sector in Bangladesh
to improve its export competitiveness and benefit from business links with selected markets in Europe. ITC
has assisted 40 companies in 2011-2013; these companies have found new buyers in Denmark, Germany,
the United Kingdom and the Netherlands.


The project aims to promote Bangladesh as a global ITO sourcing location in cooperation with the
Bangladesh Association of Software and Information Services (BASIS), the national trade body for Software
& ITeS. Established in 1997 with only 17 charter members, BASIS today has more than 597 members. The
case studies below are taken from among the BASIS membership.




1.2. Nascenia Limited (www.nascenia.com)


Established in 2010 by Sheikh Shaer Hassan, Nascenia Limited provides software solutions to start-ups and
mid-sized companies. Nascenia has been exporting and undertaking off-shored work since its year of
foundation. An SME with annual revenues of US$ 200,000-US$ 400,000, the company has 22 employees.


The company has expertise in dynamic and mobile web applications using Web 2.0 technologies and built its
portfolio working primarily in Ruby on Rails, PHP, WordPress and Java 2 Platform Micro-Edition (J2ME).
Most of its foreign clients are based in the United Kingdom, Sweden, Denmark, the United States and India.


“Everything went extremely well. My project was fairly complex and required Nascenia to investigate
new technologies. They succeeded with flying colours and I can’t wait to get started on another
project. I was very impressed with their communication and willingness to move directions slightly.
The code produced was excellent. Fantastic team!”


Patrick Stockwell, Founder of Volta Inc. (United States)


Nascenia’s export success has been enhanced by its participation in the NTF II project from 2010-2013,
aimed at creating business linkages between Bangladeshi IT companies and Danish enterprises seeking to
outsource business processes. As a result of activities through this period, Nascenia’s export revenue has
quadrupled.


An ITC matchmaking event in Dhaka at the beginning of March 2012 led Nascenia and Better Collective, a
Danish web publishing company focused on developing, designing, writing, and marketing for the web to
forge what has proven to be a stable international client relationship.


After building trust and learning about each other’s operations, Better Collective hired Nascenia to set up
many of the company’s websites in MODX, a content management system written in PHP. The two
businesses are now in discussions to engage more resources in building a web application in Ruby on Rails.


‘We tested many waters before we came here, but now Nascenia is our trusted partner,’
Thomas Høgenhaven, Chief Strategy Officer, Better Collective.


‘We know what we can do and what we cannot do, and we let our clients know that,’
Shaer Hassan, Chief Executive Officer, Nascenia.


Nascenia’s staff has almost doubled from 12 since the matchmaking event took place.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


10 SC-13-233.E




1.3. Synesis IT Limited (www.synesisit.com.bd)


Synesis IT Limited provides secure, scalable, on-demand application systems and data access solutions.


The company was founded in 2006, by three graduates of the Bangladesh University of Engineering and
Technology – Shohorab Ahmed Chowdhury, Rupayan Chowdhury and Md Rezaul Karim Their vision was to
build a globally respected company based on quality, best practices, sound employment processes, social
commitment and a financially sustainable business model. Initially, the company concentrated on the
domestic market, but it has since gained a notable recognition abroad. It can handle specialized outsourced
work through streamlined processes, highly qualified professionals, and innovative technological
breakthroughs.


The main export markets include the United States (Savvy Software Solutions, Inc., ChalkStream Capital
Group, American Foundation of Aids Research) and Europe (Parkingware, Intellisor). In 2011, annual
revenue reached in US$ 500,000, up from US$ 350,000 the year before.


Synesis IT is a leading software developer and IT-enabled service provider in Bangladesh, and it prides itself
in making a direct contribution to society and having a positive socioeconomic impact in Bangladesh, through
projects it has delivered, including for example call centres for a national medical provider and for Dhaka’s
water authority. On the basis of projects such as these, Synesis IT has developed a strong reputation in the
domestic market. It is the only company in Bangladesh where engineers and doctors work together, and its
commitment to gender equality has led to women making up 40% of its employees.


Over the past three years, Synesis IT has been showcasing these local success stories overseas,
particularly in Europe, where it received assistance from ITC’s NTF II programme. NTF II has helped Synesis
IT build capacity and market exposure; as a result the company now has clients in both the Netherlands and
Germany and has achieved a 20% increase in export revenue.


Synesis IT started with 7 staff and has grown to employ more than 130 professionals.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 11


2. Cambodia


2.1. Services profile


Cambodia’s total trade expanded at a very strong average annual rate of 14% between 1995 and 2011.
Commercial services exports have grown even more impressively, doubling over the period 2005-2011 to
reach US$ 2.1 billion.


The country typically runs an overall trade deficit but in the services account, Cambodia runs a net services
surplus. This surplus grew roughly two and half times over the decade to 2011, reaching US$ 0.8 billion. The
positive trend has been sustained into 2012.


3
Services export contribution to GDP value added has similarly


grown significantly over the last four years to reach 17.2% in 2011.


Net services exports are recorded in Travel, Communications, Financial Services and Other Business
Services. Financial services exports earnings sky-rocketed from US$ 4 million in 2010 to US$ 75 million in
2012.


4
Construction is also trending rapidly upwards, even if not recording a surplus.


This net services export performance is impressive, given that in East Asia, Hong Kong, China SAR,
Singapore and the Philippines are the only other economies which regularly run a services trade surplus.


The trade data reflect structural changes underway in the domestic economy. In terms of contribution to
GDP, agriculture commenced a slow relative decline in 1995 and by 2000 was overtaken by the services
sector. Growth in all sectors accelerated over the last decade; but unlike manufacturing, growth in services
was sustained through most of the global financial crisis, averaging over 6% per annum between 2006 and
2010. By 2010, services activities generated 44.5% of GDP (below the LDC average). Wholesale and Retail
Trade are the most important services activities, followed by Transport and Communications, Real Estate,
Business, Construction and Hotels and Restaurants. On the employment side, agriculture continued to
dominate in 2011, providing 55% of jobs while services provide only 27%, up from 18% over the decade.


The weight of Hotels and Restaurants in the National Accounts and of Travel in the Balance of Payments
reflects the relevance of in-bound Tourism for the economic growth of the country.


Recognized by the Government as an important generator of employment and foreign exchange, the tourism
industry has been given priority attention. Particular focus has been placed on the niche development of
cultural and eco-tourism. The number of tourists visiting Cambodia reached 3.5 million international arrivals
in 2012 with a direct contribution to GDP of almost 10%.


5


The Financial Services sector also displays dynamic growth including in export revenue generation, but is
still underdeveloped in terms of its contribution to GDP. There has been an increase in deposits and loans in
the country’s banking system and micro-finance has expanded rapidly including to rural areas.


The UNCTAD World Investment Report 2013 highlights the recent prominence of developing country
greenfield retail banking projects. Among the LDCs, Angola attracted by far the largest number of projects,
followed by Cambodia and Uganda. By value, Cambodia attracted the largest amount i.e. US$ 2.3 billion, or
28% of the total retail value of banking investment plans.


On the regulatory front, the Credit Bureau of Cambodia has been established in 2012 to support this growth
in the banking system and enable better credit information. The Bureau is set to play an increasingly
important role in safeguarding and reducing credit risk and supporting improvement of risk management and
credit application practices by banks and micro-finance institutions.



3
National Bank of Cambodia.


4
IMF Statistics.


5
World Trade and Tourism Council.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


12 SC-13-233.E




2.2. ACLEDA BANK Plc. (www.acledabank.com.kh)


ACLEDA Bank Plc. is a public limited company, set up with assistance from the International Labour
Organisation (ILO) and the United Nations Development Program (UNDP) in January 1993, as a national
NGO for micro and small enterprises development and credit.


The expansion of its network to cover all of Cambodia's provinces and towns and its rapidly demonstrated
ability to operate sustainably at a profit, led both its Board of Directors and its international partners to
conclude that it should be transformed into a commercial bank.


This step was motivated also by the need to provide a secure regulatory framework which was lacking under
ACLEDA’s previous status and to enable ACLEDA to enlarge its range of funding options, such as equity
injection, public deposit-taking and commercial interbank lending, to support expansion of its core micro-
finance business.


Since 2003, ACLEDA Bank has been licensed as a Commercial Bank after having tripled its capital to
US$ 13 million, and been renamed ACLEDA Bank Plc. By the end of 2012, ACLEDA Bank’s total assets
were US$ 1.9 billion with market share around 22% of total lending and 21% of total deposits.


In 2012, the Group reported earnings of over US$ 65 million – a growth of 31% compared with 2011.


This was the result of strong growth in the banking business in almost all products - despite robust
competition including from numerous foreign banks with commercial presence in Cambodia. The bank
currently has a loan portfolio of US$ 1.4 billion to more than 320,731 borrowing customers of which more
than half are women. It employs 8,344 staff in 238 branches and offices in all provinces and towns
throughout Cambodia.


ACLEDA Bank is currently 51% owned by Cambodian interests, including its staff, with the remaining 49%
taken up in equal parts by the International Finance Corporation (IFC), COFIBRED (Compagnie Financière
de la BRED — a BRED Banque Populaire's fully-owned subsidiary), JSH Asian Holdings Limited (a wholly-
owned subsidiary of Jardine Strategic Holdings Limited), and the three investment funds (Triodos-Doen
Foundation, Triodos Fair Share Fund, and Triodos Microfinance Fund) managed by Triodos Investment
Management.


Today ACLEDA Bank is offering e-banking, credit, deposits, local and International funds transfers, trade
finance, cash management, money exchange, and a variety of other banking services.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 13


Having built a strong national competency, ACLEDA is now committed to further strengthen its international
positioning:



“We continued to strengthen and deepen our Financial Institutions relationships and added some
substantial new international correspondents to our network during the year. At the end of 2012 we
had 458 correspondents covering 57 countries.”


"ACLEDA Bank continues to grow with its customers in all segments of the community. Supporting
our customers to expand their business from local trade to international trade is one of the main
factors of how we are growing with our customers".


Dr. IN Channy, President & Group CEO, ACLEDA Bank Plc.


The Bank now has commercial presence in two neighbouring countries.


In 2007 it opened its first branch in Lao PDR, where it now has 28 offices. In 2008, a full banking license was
granted to operate a commercial bank in Lao PDR. In 2010, ACLEDA Bank Lao Ltd. doubled its paid up
capital to US$ 26 billion through shares issuance. In 2011, ACLEDA Bank Plc. retained a 39.95% stake in
the subsidiary. The principal activities of ACLEDA Bank Lao Ltd. are the provision of banking and related
services in Lao PDR.


More recently, in 2013 ACLEDA expanded its operations into Myanmar, incorporating and creating a wholly-
owned subsidiary ACLEDA MFI Myanmar Co., Ltd. with an initial paid-up capital of US$ 10 million.


Establishing commercial presence abroad is not the only way the bank is participating in international
business. ACLEDA Bank is also accepting deposits from and providing financial services to non-residents.


ACLEDA Bank is the first bank in Cambodia to have been assigned ratings by an international credit rating
agency (Standard and Poors). In 2012 it was awarded the prestigious 2012 Most Admired ASEAN
Enterprises Awards in the category of “Growth and Employment” by the ASEAN Business Advisory Council.
The bank was also recognized by the 2012 Product Innovation and Partnership Award from J.P. Morgan.




2.3. Wings Over Cambodia (www.wingsovercambodia.com)


Wings over Cambodia, based in Kompong Speu, provides recreational tours for in-bound tourists as well as
aerial photography services, video and aerial surveying. The company uses ultra-light aircraft to provide a
competitive alternative to helicopter and fixed-wing charter companies at approximately 15% lower rates.


In 2002, individuals involved in recreational ultra-light flying in Cambodia started to operate as a not-for--
profit entity called the Cambodia Ultra-light Association. They initially provided services for free, or at cost,
assisting in archaeological and conservation studies conducted by various local and foreign institutions. As
awareness grew, other organizations such as humanitarian trusts, foreign researchers and international film
companies started requesting low-cost flying services – turning the company into a service exporter
essentially accidentally.


International clients have included Golden West Humanitarian Foundation (United States), IFA Films -
Animal Planet (United States), The Greater Angkor Project (Australia), Wildlife Conservation Society (United
States), The Halo Trust (mine clearance) (United Kingdom), the Food and Agriculture Organization (FAO),
Helsinki University (Laboratory of Water Resources), the University of California, NASA JPL (remote sensing




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


14 SC-13-233.E


and GIS), EFEO (French archaeology studies), University of Sydney (archaeology), the Helsinki University
(Laboratory of Water Resources), the University of New South Wales (Centre for Remote Sensing and GIS),
the University of Singapore (archaeology and Khymer studies), Science Magazine and National Geographic.


Internet searches have led many potential clients to Wings Over Cambodia, while others find it through direct
client references. A number of independent film companies have used the ultra-light machines as a video
platform; their films and documentaries have since been aired on popular international networks, further
advertising the Wing over Cambodia brand.


With respect to the regulatory environment, Cambodian authorities have been highly cooperative and have
allowed the company to operate in most parts of the country. Challenges have related to meeting the safety
regulations for equipment and internationally recognised training certification and quality assurance for the
pilots.


Wings Over Cambodia has 6 machines; each machine seats 2 people including the pilot and is capable of
cruise flight at 70 to 80 km/hour at altitudes of 3,000 metres.


3. Rwanda


3.1. Services profile


In 2012, the services sector contributed 45% of GDP (below the average of 47% for LDCs) compared with
33% for agriculture and 16% for manufacturing. Over the period 2005-2011, commercial services exports
grew 282%, to reach US$ 318 million, contributing 6.7% to GDP value added in 2011.


In 2011 Rwanda recorded exports in the categories of Transport and Travel, recording a net surplus on
Travel which partly acts as a proxy indicator for in-bound Tourism.


Tourism offers considerable growth opportunities. Rwanda is referred to as ‘the land of a thousand hills’ and
has a comfortable climate and a unique landscape and accessible wildlife. It is one of only two countries in
which mountain gorillas can be visited safely in the wild; gorilla tracking, in the Volcanoes National Park,
annually attracts tens of thousands of visitors who are prepared to pay high prices for permits.


For the first six months of 2011, the Directorate of Immigration and Emigration recorded 405,801 in-bound
tourist arrivals of which 16% were from outside Africa, generating a relatively high revenue stream from
tourism of US$ 115.6 million.


Despite its natural advantages, Rwanda is not yet, however, a tourism hotspot. The Government is working
on a branding strategy to promote Rwanda as a tourism destination in East Africa but with stiff competition
from other Eastern African countries such as Kenya, the United Republic of Tanzania and Uganda.


The long term economic development plan “Vision 2020” sets out a path for the country to move from an
agriculture-based to a knowledge-based economy. With the support of the private sector, the Government
has initiated a number of reform measures to improve the legal and institutional framework for development
of the services sector, as well as a general improvement in the business environment.


The strategy includes regulatory reforms to attract investment and position Rwanda as a financial centre in
the region, including for business transactions and brokerage. Rwanda already has fourteen banking
institutions, seven insurance companies and sixty-six microfinance institutions.


The ICT sector, including Business Process Outsourcing (BPO) is another pivotal part of Vision 2020, with
strong domestic growth prospects as well as emerging export potential within the sub-region and beyond.
According to the Rwanda Development Board, current domestic demand for BPO services is estimated at
US$ 50 million, forecast to increase to almost US$ 200 million by 2020 across the telecommunications,
tourism, finance and government sectors.


Rwanda’s anticipated export potential in this sector is based on factors such as availability of language skills,
time zone/geographical location and low relative labour costs. Rwanda is rapidly producing both French and
English-speaking professionals in various fields including engineering, ICT, financial management and
accounting. Key potential market niches in global and regional value chains include coding, billing, data
processing and customer contact processes. Rwanda aspires to eventually serve as an off-shoring hub for




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 15


countries in Europe and North America by starting off on a regional basis as a third-party or sub-contracting
hub for established off-shoring destinations such as South Africa in particular.


The ICT sector currently therefore offers significant investment opportunities and cost advantages for first
movers. Rwanda is investing US$ 24 million in its communications infrastructure to ensure connectivity to the
global network. The National ICT Plan (NICI 3) 2011-2015, which focuses on services development, was
launched in 2011. The Plan focuses on services delivery where all institutions will network together using the
currently existing infrastructure. The country is also investing heavily in ICT skills development and has
partnered with Carnegie Mellon University to establish an ICT Centre for Excellence.


The Rwandan BPO cluster is a diverse array of firms providing both IT and back office services in finance
and administration to a range of domestic and foreign clients. Initiatives fostering private sector development
include several business and career development support services; online trade information portals;
business incubators; online tax calculators; credit reference bureau; a land administration and management
information system; electronic case management system; and improvements in the online banking and e-
transaction regulatory system.


Various initiatives have greatly improved Rwanda’s business environment. In 2013, Rwanda ranks 52 (out
185 countries) on the World Bank Ease of Doing Business Index which compares favourably with other
members of the EAC, setting the stage for ICT exports, among others.


3.2. VubaConsulting LLC (www.vubaconsulting.org)


VubaConsulting is a limited liability consulting engineering firm which provides advice, guidance and
implementation strategies to international organizations, schools, universities and individuals operating or
planning to operate in Rwanda.


The company’s clients are all international and chiefly drawn from the United States and Canada. The
company operates in four languages, two international (French and English) and two local (Kinyarwanda and
Swahili).


The company’s business model focuses on connecting international clients interested in operating in
Rwanda with local professionals, contractors, businessmen and handy-job providers not otherwise known on
the international market. VubaConsulting provides support, assistance and local in-country connections.


The aim is to connect foreign organisations with Rwanda-based qualified professionals in the areas of
energy, water technologies, environmental engineering, public health, economic development, and
education. The idea is that these local professionals will provide knowledge and expertise needed to ensure
that international initiatives take a successful path in Rwanda.


The company also provides complementary
6
coaching services to help international professionals


collaborate and partner better with local professionals to identify strategies to overcome challenges. The
coaching also focuses on overcoming cultural barriers and impacting large communities. VubaConsulting
markets its services to international clients as professional problem solving and local professional connection
services.


Jean Pierre Nshimyimana, the founder and Chief Executive Officer, holds a Master in Science in Civil and
Environmental Engineering from MIT. Francois D’Assise Nezerwa is the Director of Connections in Rwanda
at VubaConsulting; he is also Manager of CALIMAX Ltd, a Rwanda-based company specializing in rural
electrification and founder and CEO of DASSY Engineering Solutions Ltd and Partner at CEEP Hydro Ltd.







6
This profile is based on internet research, including the World Economic Forum Davos Debates in Africa, 2010.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


16 SC-13-233.E


4. Senegal


4.1. Services profile


Senegal’s economy is dominated by a few strategic sectors, among them services, which contributed an
impressive 60% of GDP value-added (above the LDC average) in 2011. Over the period 2005-2011, exports
of commercial services grew 47% to reach just over US$ 1 billion in 2011. Nevertheless, exports of
commercial services declined from 9.6% of GDP value added in 2008 to a predicted level of 8% in 2011.


7
No


disaggregated data on the individual services sub-sectors is available.


The services sector has experienced average annual growth of 5% throughout the last decade and employs
37% of the labour force (2006 data) compared with 33% in agriculture and 14% in manufacturing.


8


Senegal realized early potential in services export activities largely thanks to its geographical position that
makes it a natural transit point between Europe, Latin America and sub-Saharan Africa. Its international
airport has long been regarded among the best equipped in the region. Its positioning of sea-line cables
provides high communication bandwidths and its climate, resorts and culture have traditionally formed the
basis for strong in-bound tourism.


After the slowdown in 2011, average per annum growth in GDP recovered in 2012, to an estimated 3.7%.
9


With both the manufacturing sector and the agricultural and fisheries sector experiencing erratic growth and
vulnerability to external shocks, the services sector has driven this recovery. Services value added grew by
4.8% in 2012, mainly led by financial services, telecommunications and retail trade. Transport (especially rail
and air), hotels and restaurants suffered a setback in 2012 due to difficulties encountered in the tourism and
leisure sectors with Senegal Airlines temporarily ceasing activities. Services sector growth is expected to
continue in 2013 and 2014 thanks to the resumption of activities by Senegal Airlines in 2011 as well as new
infrastructure programmes, such as a toll motorway and the construction of the new Blaise Diagne
International Airport.


To take full advantage of its services potential, Senegal made an early investment in modern
telecommunications infrastructure such as fibre optic cables and undertook domestic reforms including
privatization of water supply, electricity and the national telecoms operator. The government also instituted a
range of mechanisms to promote inward foreign investment. In 2011 FDI accounted for only 2% of GDP after
decreasing from 3.4% in 2008. APIX, the Senegalese investment promotion agency is actively highlighting
the role of services in the economy in an effort to attract FDI in particular into Tourism and ICT.


A central national objective is to accelerate the development of tele-services. Over the 2006-2010 period, the
country has gradually been able to reduce the digital divide through development of digitized network, solid
penetration of mobile telephony, extension of coverage of the national territory by the various
telecommunications networks, and a steady decline in the price of admission to the telecommunications
business. The call centre business in particular is seen as a real opportunity to break into the modern world
by integrating the Senegalese economy into global value chains.


Senegal’s competitive advantages as a call centre outsourcing location reside essentially in labour costs
which are ten to fifteen times lower than in France while the level of education of a teleworker is significantly
higher than in France for the same position.


10


The challenges are nevertheless real. ICT companies, for instance, have not always been able to reap the
expected value-added benefits as the environment remains unfavourable with delays in telecommunications
services unbundling, number portability, open access to short numbers and the opening up of international
data access. The ICT business incubator project, launched in 2010 and intended to facilitate the incubation
of at least 30 companies a year, will provide support for young enterprises with development potential. The
main obstacles in this subsector are the absence of a single strategic governance framework for the sector
based on a national ICT development strategy, the low level of education and equipment of households and
enterprises, and the high cost of access to telecommunications/ICT services and equipment.



7
World Bank Database.


8
Ibid.


9
African Economic Outlook.


10
AGIR Promouvoir.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 17









4.2. Premium Contact Center International (www.pcci.fr/)


PCCI is a locally-owned holding company, created in 2002 by three young Senegalese. PCCI provides a
large number of back-office services to companies looking to outsource business processes. Customer
relationship management (CRM) is the most common service offered by the company, but it also provides
electronic document management portals, web portals, content management systems (CMS), email
processing and tele-surveys.


In ten years, its client base has expanded significantly with the company chiefly focused on attracting work
for the international market; most clients are large and medium sized enterprises. Turnover is split between
Europe (40%) and Africa (60%). PCCI is supplying European and other multinational value chains, operating
in different services sectors such as telecommunications, internet, communications, security and distribution.


Thanks to the experience gained in the international market, PCCI is now positioning itself to pick up work for
local clients resident in Senegal, in particular with telecommunications companies outsourcing their inbound
calls to the contact centre.


PCCI offers its clients quality of service and cost control thanks to a trained labour force, supervision by
experienced management and superior quality digital infrastructure networks in Senegal. PCCI’s success
has attracted business attention and a growing number of other tele-services companies are also now
offering call centre services as well as higher value-added services such as distance software development
and technical support. PCCI remains the most successful tele-services company in Senegal.


The strength of PCCI resides in its high quality human resources. PCCI employees are trained in neutral-
accented French and general knowledge about France. Employees are also trained to recognize regional
accents in France. Today, PCCI employs as many as 20 different nationalities speaking more than 50
languages.


To meet the international market requirements and build its clients’ confidence, PCCI has adopted a rigorous
quality control system in all of its operational processes with regular audits, ensuring that the services
provided are in line with client expectations.


Importantly, PCCI also adopted an economic incentive model where the billing system is based on
performance. In general clients pay only if they get results. So the focus on measurable indicators in
contractual arrangements has been among the company’s key success factors.


Starting with around 35 employees, it now employs about 1,800 people in three production sites: Senegal,
Cote d’Ivoire and Cameroon. PCCI is planning to establish a commercial presence in Nigeria and Ghana as
well. PCCI has also opened representative offices in Paris and London in order to be close to its target
markets and to maintain direct contact with potential clients.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


18 SC-13-233.E


PCCI is now a well-known brand with ready capability to launch new products and tap into new market
segments. In its earlier days, however, the company faced many challenges associated with meeting
international market requirements, especially on pricing and service quality. Costs were high and there was
also a severe skills shortage and no local training institutions specialized in training tele-marketers for
inbound and outbound calls. Labour turnover was high related to stiff competition for skilled tele-workers.


In less than a decade, the company has overcome the challenges to become the No. 1 contact centre in
sub-Saharan Africa.


5. Uganda


5.1. Services profile


A landlocked country with a population of approximately 34.5 million, Uganda has enjoyed average GDP
growth of 7% per annum over the last decade. According to the UNCTAD National Services Policy Review of
Uganda, the services sector has consistently demonstrated the highest growth potential of any sector in the
Ugandan economy. In 2008/09, the services sector was reported to have grown by 9.4%, compared with
7.2% for manufacturing and 2.6% for agriculture. The services sector accounted for 51% of GDP (above the
LDC average) in 2011 and for about 30% of employment. Agriculture employs approximately 65% of the
labour force.


Following the reform of investment regulations since the 1990s, FDI has been a key driver of services sector
growth especially in Business services, Construction, Wholesale and Retail trade. In 2007 Uganda, with the
assistance of the International Trade Centre, designed a National Export Strategy (for 2008-2012), which
identified services in particular tourism among the key priority sectors to be developed in order to achieve
employment and growth.


Form 2005-2011, commercial services exports grew by 176% to US$ 1.3 billion, contributing 10% to GDP
value added in 2011. Although the services account was in overall deficit in 2011, Uganda is, nevertheless, a
net exporter in the services sub-sectors of Travel, Computer and Information services and Financial
Services. The country’s positive net export performance in Travel services is in part a proxy indicator,
highlighting the importance of both in-bound Tourism and also Tertiary Education services.


The ICT sector is one of Uganda’s best export growth performers and Uganda ranks among Africa’s
strongest performers in the export of ICT-related services, recording growth from US$ 0.7 million in the fiscal
year 2003-04 to US$ 31.5 million in fiscal 2006/07 - a forty-five fold increase - and continued to increase to
reach US$ 45.6 million last year.


The strong growth is at least partly the result of a targeted government policy focus, including initiatives such
as introduction of a National ICT Policy Framework, establishment of a Ministry of Information and
Communications Technology and active promotion of the ICT sector through the Uganda Investment
Authority.


Services continue to be targeted as a major driver for future growth in the Government’s Development
Strategy “Uganda Vision 2040,” which sets targets of the desired level of development and social-economic
transformation.


Services’ contribution to GDP is targeted to reach 58% by 2040, with predicted major movement of
employment away from agriculture and towards services. This will require an on-going policy focus as well as
intensified investment in human capital and digital and educational infrastructure.


The case study selected is in tertiary education, a sector addressed in all the country’s strategic plans;
education is one of the eight priority objectives identified by the National Development Plan announced in
April 2010.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 19





5.2. Tertiary education


As a result of major policy developments including the Universal Primary Education initiative, the Universal
Secondary Education initiative, and the liberalization reforms of the late 1990s allowing active private sector
participation, the education sector in Uganda has grown very rapidly over the past 15 years. Uganda’s
Universities pass out over 30,000 graduates every year.


According to the Uganda Investment Authority planned/registered investment in education amounted to
US$ 154.7 million over the decade to 2012, mostly from private local investors.


The ITC facilitated Uganda National Export Strategy 2008-2012, highlights education as one of the sectors
with the highest export potential. The National Council for Higher Education (NCHE) estimates that exports
of education services yielded US$ 36 million in the year 2010 (which suggests a 2% contribution from higher
education to total services exports – estimated at US$ 1.31 billion in 2010).


Active promotional efforts on the part of the Uganda Export Promotion Board (UEPB) have contributed
significantly to the increase of foreign students at Ugandan Universities, who now make up 9% of the student
body. The UEPB partnered with the Commonwealth Secretariat, NCHE and selected universities to improve
the competitiveness of Uganda’s higher education sector within the East African Community (EAC) and
Common Market for Eastern and Southern Africa (COMESA) regions. Activities included:


Developing a collective brand name for Uganda’s higher education sector


Marketing Ugandan higher education through foreign embassies and the Ministry of Foreign Affairs


Establishing “Study in Uganda” as a single web portal with links to all the universities’ websites


Scaling-up individual university marketing activities at education fairs in the EAC.


To facilitate the regional movement of students, EAC members have agreed to create comparable
frameworks to promote equal access to education opportunities, to harmonize competencies and to
harmonize curricula, quality assurance and accreditation systems. These reforms could be further
strengthened by various proposed mutual recognition agreements.


Many universities in Uganda, including private, offer courses to foreign students: Kampala International
University has 6,715 foreign students, Makerere University-College of Health Sciences has 2,444, Bugema
University has 862, Islamic University in Uganda has 767, Makerere University Business School has 671 and
Busoga University has 575 foreign students. Most of the foreign students come from neighbouring countries:
Kenya, the United Republic of Tanzania, Sudan, Rwanda and Democratic Republic of the Congo. The EAC
and COMESA regions are, therefore, the major export markets.


11
Business related programmes are the most


popular courses with international students (22%) followed by Information and Communication Technology
(15%), health sciences (15%) and law (11%).


Kampala International University (KIU), a private multi-campus university, has commercial presence abroad,
with branches established in the United Republic of Tanzania and Kenya in 2001. Kampala International



11


Uganda National Export Strategy 2008-2012.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


20 SC-13-233.E


University Dar es Salaam College began as a Study Centre of KIU at a temporary site and later developed
into a college. It is now permanently situated on a 100 acre site in Dar es Salaam.


Uganda’s attractiveness to foreign students is based on a combination of cost and quality factors. On the
one hand, Uganda has a fairly well developed education system offering a diverse range of academic
programmes. At the same time, tuition fees are relatively inexpensive, compared with other East African
countries. The cost of living in Uganda is also relatively low and the general environment for foreign students
is safe. The following SWOT analysis, drawn from the Uganda Services Export strategy 2008-2012,
summarizes the main features of the education sector.


Box 1: SWOT analysis of Uganda’s tertiary education exports




STRENGTHS:


The historical foundation of Uganda’s educational
system based on the British system heightens
acceptability regionally and internationally


Massive investment by private investors in
education in a short period


Government policy focus i.e. Education for All, at
primary and secondary levels


The use of English language as a medium of
instruction at all levels


Comparatively inexpensive education regionally
and internationally




WEAKNESSES:


Poor and old infrastructure


Inadequate remuneration of tutors


A high percentage of the population is not able to
access higher education


Curricula not able to respond to market demand


Poor marketing and advertisement


Unbalanced geographic distribution of tertiary
institutions in the country


Emigration of teaching and administrative staff




OPPORTUNITIES:


Connection with regional market


High percentage of population within the country
and regionally seeking education opportunities


Political instability in neighbouring countries


Liberalization of education system


Economic integration that eases cross-border
movement of students




THREATS:


Internal and regional wars


Competition from developed and developing
counties e.g. Australia, Malaysia, India, United
Kingdom and South Africa


Declining overall standards


Compromised quality due to high demand


6. Vanuatu12


6.1. Services profile


Agriculture, forestry and fishing provide a living for 60% of the labour force, but other economic mainstays
are offshore financial services and tourism. Indeed the Services sector accounted in 2009 (latest data
available) for an extraordinary 70% of GDP (above the LDC average), while employing 31% of the
population.


13


GDP grew at an average annual rate of just over 3% over the last decade but by only 0.9% and 1.4%
respectively in 2010 and 2011. A decisive recovery is forecast for 2013 and 2014 due to increases in in-
bound tourist arrivals as well as FDI. What growth has been experienced in recent years has been driven by
services activities, in particular in-bound Tourism, which alone accounts for 40% of GDP, followed by real
estate and wholesale and retail trade.


14


Commercial services exports doubled in the period 2005-2011 to reach US$ 282 million. Vanuatu exports
services in all the categories recorded in the Balance of Payments. Indeed, Vanuatu is also a net services
exporter, recording a surplus in the services account of US$ 138 million in 2011.



12


Although its per capita GDP exceeds LDC thresholds, Vanuatu is categorized as an LDC due to an adjustment based on the
‘vulnerability index’, which takes into account the vulnerability of Vanuatu’s economy to natural disasters.
13


World Bank Database.
14


CIA Factbook.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 21


The main contributor to this export success is Travel, which serves partly as a proxy indicator of the export
importance of in-bound Tourism. Travel accounts for 80% of Vanuatu’s services exports, the main sources of
in-bound tourist arrivals being Australia and New Zealand.


Vanuatu is also a net services exporter of Construction, Financial services, and Personal, Cultural and
Recreational Services. Commercial services accounted for 44.4% of total exports in 2011. Services exports
account for 36% of GDP value-added.


In mid-2002, the Government stepped up efforts to boost in-bound Tourism through improved air
connections, resort development and the enhancement of cruise ship facilities. “Open sky policy, adopted in
2003, led to the market entry of Pacific Blue Company in 2004, boosting visitor numbers and providing
competition to Air Vanuatu.


Tourism was also identified as a priority sector in the “Priorities and Action Agenda 2006-2015” as offering
potential as a source of foreign exchange as well as creating employment and fostering development of the
outer islands. As identified in the Priorities and Action Agenda, Tourism still faces some serious constraints,
including for example:


The inadequacy of existing accommodation in terms of quality, size of units and limited distribution
around the country including a lack of boutique resorts to attract higher income tourists;


Lack of adequate infrastructure for international air passengers and cruise ship passengers as well as
poor roads on the main resort islands and air services between the islands;


International and domestic air services are underdeveloped and expensive;


The land on beachfronts for building tourist facilities is insecure;


Insufficient marketing and promotion of Vanuatu and its unique tourist attractions particularly in niche
markets such as adventure, diving, game fishing and nature tourism;


Lack of community awareness of tourism developments and the benefits that can accrue to the local
community;


Absence of a systematic training program for tourism personnel at all levels








LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


22 SC-13-233.E


6.2. Evergreen Limited (www.evergreenvanuatu.com)


Initially conceived in the early 1990s by a local Ni-Vanuatu family, the Malas, Evergreen was formally
established as a fully licensed inbound tour operator in 1999, with its head office in Port Vila.


The company is owned by the Malas Family, who are the customary land owners of the spectacular Mele
Cascades Waterfalls and the Kalo Family who are the customary land owners of the renowned Pele Island
Beach. Thanks to deep knowledge of local customs and culture, Evergreen Ltd has become the largest
indigenous tour operator in Vanuatu with a network covering all of Vanuatu’s major tourist islands.


Evergreen is also a handling agent for major international travel agents from Australia, New Zealand and
New Caledonia, providing high-quality destination services to clients at competitive rates.


With a highly trained bi-lingual staff, the company offers half- and full-day tours from eco-tourism and cultural
itineraries to wellness and adventure experiences. In all its proposed tourist activities, the company is
committed to achieving a positive impact on the local economy, integrating local communities into the tours
as guides, as sellers of local products, or by facilitating tourist experiences of traditional cuisine and artistic
performances.


Evergreen owns a fleet of modern air-conditioned tourist coaches and tour buses providing seat-in-coach or
private transfers. Compliance with safety standards is ensured for all sea excursions, with modern boats
quipped with life jackets and flares.


In a recent effort to position itself in the global tourism industry, representing all other Ni-Vanuatu tour
operators, Evergreen exhibited at the Mini World Expo in Yeosu city in South Korea in 2012.


“This has been a good opportunity for the company to diversify its target markets from the tradit ional
ones, mainly Australia and New Zealand, and in particular to create connections with South Korea and
other Asian emerging markets. Evergreen receives over 6,000 Korean tourists every year and we look
forward to increase their number as a result of this Expo.”


Philip Malas,
15


Managing Director, Evergreen Tourism


In 2013 the company was awarded a certificate of excellence by Trip Advisor, setting a new a benchmark for
other local companies in Vanuatu.


The company has also developed niche expertise in events management including wedding planning. With
its specialized staff of wedding coordinators, Evergreen offers complete wedding packages, taking care of all
arrangements, from flowers to photography, marriage license registration fee and refreshments.


Evergreen is hence contributing also to Vanuatu’s net export position in Personal, Cultural and Recreational
Services.


7. Conclusion


As the preceding case studies have demonstrated, there are successful services exporters in LDCs. The
case studies also confirm that enterprises headquartered in LDCs can achieve commercial presence abroad,
and not only in other LDCs. While it has not been a focus of this brief study, it is evident that the LDCs also
earn foreign exchange through temporary movement of personnel, often in tandem with export through other
modes.


The case studies also throw useful light on the factors relevant for successful services export performance.
The export stories help to understand the kinds of challenges LDC enterprises face and what it takes to
boost the chances of success, including policy and regulatory variables. The stories confirm there are many
variables, and much therefore that businesses and governments can do to enhance the opportunities for
LDC participation in global and regional services supply chains.


The deployment of knowledge-intensive skills and the associated human resource development was
important for all of the case studies presented. Education is vital to the services sector and the availability of
appropriate training opportunities, including for languages, can evidently turn local business prospects




15
Vanuatu Daily Post, 10 May 2012.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 23


around. This is true in the Bangladeshi and Senegalese stories. It is true also in the Rwandan and
Cambodian case studies. It is fundamental to the success of the tertiary education sector in Uganda.
Education and training is not a policy variable which should be seen as relevant to business only in the long
term. It is always important for governments to act fast to ensure the appropriate tertiary including vocational
training facilities exist.


Similarly, many of the export success stories showed the importance of regulatory reform efforts both to
encourage local cost competitiveness and/or to enhance international client confidence in the relationship
with local businesses. Indeed the associated services profiles show that the relevant governments are highly
focused on achieving additional business reforms and on providing the infrastructure needed to build new
industries. To this end, many of them already have or are developing, in consultation with local stakeholders,
deliberate national services industry plans and services export strategies.


In many of the case studies, enterprise-level compliance with international standards was very important. For
all, the ability to solve technical problems and to innovate to meet international client needs was the key to
export success. Export promotion efforts on the part of the government also figure importantly in the success
stories, most obviously for Uganda but also for Vanuatu, and for Bangladesh. Importantly, the Bangladeshi
stories help to show the real measurable difference that Aid for Trade can make.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


24 SC-13-233.E


Part C: A framework for enhancing competitiveness in services


The lessons learned from ITC fieldwork and case study experience has been gathered along with other
relevant information into a proposed framework, summarized in Box 2, of factors which ITC identifies as
likely to have a determining role in driving services competitiveness.


16




Box 2: Factors driving international competitiveness in services


1. Endowments, especially Human Capital (talent, education, skills, ideas, culture of customer focus)
(tertiary enrolments, vocational training, languages)


2. Investment in Intangible Assets (corporate IP e.g. copyright, business
methodologies, brands)
(supportive environment for innovation)


3. Enabling Digital Infrastructure
(quality of the telecommunications network)


4. Quality of Institutions
(transparency, rule of law)


5. Efficiency of Domestic Regulation
(inefficiencies and rigidities, burdensomeness of domestic regulatory compliance costs)


6. Connectedness with the International Market


(trade and investment openness, export promotion, mutual recognition, interoperability of standards,
seamlessness of regulation across borders)


7. Services Business Stakeholder Consultation
(existence of services industry coalitions, public/private consultation mechanisms)


8. National Strategic Policy Focus


(better services statistics, inter-agency consultation, vision and roadmap for services building hubs of
excellence)






This framework can be used as a basis for discussion on how LDCs can increase competitiveness in
services. LDCs tell ITC they need focused assistance to help them implement reforms related to many of the
elements of this framework.


Advice is needed, for example, on which enabling infrastructure to provide and on which regulatory settings
might be considered best practice in ensuring interoperability across the value chain. This framework and
paper are also designed to help add to the relatively limited analysis and few public policy tools available on
how to grow a services industry, or a hub of services excellence; on how to train, attract and retain services
skill sets; or on how to facilitate services innovation, collaboration and customer orientation.


Some of these issues can be addressed through a reinforced focus in Aid for Trade capacity-building
programmes on services productivity. ITC and others are acting to encourage greater coordination between
government agencies involved in services trade-related matters, help to seed services industry coalitions
and business associations, and contribute to mechanisms for public/private dialogue on services regulation.


ITC is very aware that an enhanced Aid for Trade effort is also needed at enterprise capacity level and that
services firms need dedicated attention. Box 3 summarises the ITC approach, in implementing Aid for Trade,
to building competitiveness in services at the level of small and medium-sized enterprises including in LDCs.
In essence, the key is to identify and apply the appropriate levers available to improve shortcomings in firm
level and sector-level export capacity. Cost reduction is obviously important for firms in all sectors. For
services firms, skills availability, training and human resource development is of prime importance, along with
customer focus, relationship building and reputation. Information technology, on-line functionality, innovation
and intellectual property are equally vital.



16


The factors identified also draw on informal company-level evidence emerging from services industry coalitions, on business survey
results from a 2012 study undertaken by the APEC Business Advisory Council and on empirical findings from a variety of developing
country services export case studies undertaken by the World Bank.




LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 25


Box 3: Enterprise level competitiveness factors and capacity levers


EXPERTISE


Access to skills; knowledge base of employees; linkages with academia and accrediting bodies; relationships with
regional and international firms; on-the-job training; continuous professional training, maintenance of professional
standards, creating positive professional environment; human resource and IT management.




CUSTOMER/CLIENT FOCUS


Establishing and meeting firm principles of customer service; actively managing client relationship before, during
and after sales; recognizing and integrating client feedback in business operations.


RELATIONSHIPS


Developing relationships with diaspora, partnering with leading firms, actively managing consistent positive
relationship with financial institutions and investment partners; participation in mutual recognition agreements.


REPUTATION


Strengthening firm governance; introducing management methods to ensure quality of service; training staff on
principles of professionalism; participation in export promotion activities; leverage of domestic and international
media for business profiles.


TECHNOLOGY


Access to high-quality and competitively priced IT services; access to economically priced and quality
infrastructure; engagement with industry leaders and associations; attention to on-line environment as a valuable
source of new technology and services.


ONLINE FUNCTIONALITY


Establishment and maintenance of on-line presence, management and scalability of on-line transactions, use of
on-line payment systems.


INTELLECTUAL PROPERTY


Ability to effectively protect corporate intellectual property with contracts, knowledge and use of national
framework for intellectual property, understanding of administrative process of obtaining intellectual property
rights; functional framework to ensure payments associated with copyrights, patents, etc.


INNOVATION


Consistently upgrading services as market evolves and in response to client feedback and in anticipation of client
needs; investment in staff and research and development, linkages with universities and research institutions,
engagement with R&D industry.







LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


26 SC-13-233.E





LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 27


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LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


28 SC-13-233.E


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LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


SC-13-233.E 29


Appendix I LDC commercial services exports and imports, 2011


LDCs


EXPORTS IMPORTS


NET EXPORTS Value
(US$ ’000)


2011


Average
growth %


2011-2005


Value
(US$ ’000)


2011


Average
growth %


2011-2005


LDC 21,700,000 136 65,300,000 150 -43,600,000


Angola 732,260 314 22,414,988 262 -21,682,728


Bangladesh 1,388,417 193 4,980,826 148 -3,592,409


Benin 332,398 86 561,338 110 -228,940


Bhutan 79,506 87 111,032 -13 -31,526


Burkina Faso 363,310 478 1,052,511 203 -689,201


Burundi 19,587 200 189,476 52 -169,889


Cambodia 2,139,584 101 1,292,532 105 847,052


Central African Rep. 31,787 67 185,644 76 -153,857


Chad 233,593 324 1,851,072 20 -1,617,479


Comoros 63,532 64 106,191 134 -42,659


Congo, Dem. Rep. of the 326,169 241 2,633,362 158 -2,307,193


Djibouti 151,946 60 143,016 88 8,930


Ethiopia 2,597,545 229 3,308,891 181 -711,346


Gambia 152,689 86 68,235 46 84,454


Guinea 70,590 102 525,530 157 -454,940


Guinea-Bissau 16,983 267 83,482 100 -66,499


Haiti 192,710 117 732,810 42 -540,100


Lao People's Dem. Rep. 525,588 185 325,016 1036 200,572


Lesotho 42,879 34 515,992 46 -473,113


Liberia 365,444 351 266,313 168 99,131


Madagascar 993,225 137 1,013,139 119 -19,914


Malawi 75,452 16 199,317 42 -123,865


Mali 377,726 49 1,048,881 80 -671,155


Mauritania 150,680 163 649,573 102 -498,893


Mozambique 632,511 100 1,467,175 134 -834,664


Myanmar 580,499 147 1,066,580 122 -486,081


Nepal 775,049 186 761,405 80 13,644


Niger 132,339 57 939,472 239 -807,133


Rwanda 318,056 282 510,144 189 -192,088


Samoa 170,557 51 74,554 36 96,003


Sao Tome and Principe 18,003 100 27,468 177 -9,465


Senegal 1,013,255 47 1,192,715 53 -179,460


Sierra Leone 159,971 105 245,324 185 -85,353


Solomon Islands 131,002 259 191,012 238 -60,010


Sudan 305,996 204 1,938,742 8 -1,632,746


Tanzania, United Rep. of 2,318,600 91 2,156,400 91 162,200


Timor-Leste 28,466 805,743 -777,277


Togo 367,174 153 491,503 98 -124,329


Tuvalu 3,253 92 32,627 175 -29,374


Uganda 1,347,222 176 2,258,680 281 -911,458


Vanuatu 281,845 109 143,309 109 138,536


Yemen 1,091,170 282 2,219,900 88 -1,128,730


Zambia 375,210 81 1,152,000 158 -776,790


Source: UNCTAD- WTO Trade in Services Database.


NB: No 2011 data is available for Afghanistan, Eritrea, Kiribati, Somalia. Data for Chad is 2009.





LDC SERVICES EXPORTS: TRENDS AND SUCCESS STORIES


30 SC-13-233.E



Appendix II: LDC commercial services exports composition, 2011


Country T
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r


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u


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in


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e


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LDCs           


Angola           


Bangladesh           


Benin           


Bhutan           


Burkina Faso           


Burundi           


Cambodia           


Comoros           


Congo, Dem. Rep. of           


Djibouti           


Ethiopia           


Gambia           


Guinea           


Guinea-Bissau           


Haiti        


 


Lao People's Dem. Rep.           


Lesotho           


Liberia           


Madagascar           


Malawi           


Mali           


Mozambique           


Myanmar           


Nepal           


Niger           


Rwanda           


Samoa           


Sao Tome and Principe           


Senegal           


Sierra Leone           


Solomon Islands           


Sudan           


Tanzania           


Timor-Leste           


Togo           


Tuvalu           


Uganda           


Vanuatu           


Yemen           


Zambia           




30 31 27 12 13 16 20 15 10 6


Source: UNCTAD- WTO Trade in Services Database.
NB: No disaggregated data is available for Afghanistan, Central African Republic, Chad, Eritrea, Kiribati, Mauritania, Somalia.




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