UNCTAD Plans to Boost Landlocked Trade in 2025
Awaza, Turkmenistan: New priorities for landlocked economies in 2025 are poised to transform their economic future, with digitalisation emerging as a critical lifeline to overcome geographical barriers. At a United Nations summit this week, UN Trade and Development (UNCTAD), led by Secretary-General Rebeca Grynspan, unveiled a transformative strategy to unlock trade potential for 32 landlocked developing countries (LLDCs), representing over 570 million people. By prioritising digital trade, regional cooperation, and targeted reforms, this strategy aims to accelerate ongoing efforts to position these nations as vibrant regional hubs, addressing persistent challenges in trade, logistics, and investment.
Despite hosting over 7% of the world’s population, LLDCs account for just 1.2% of global trade—a figure unchanged for over a decade. Transport costs for these nations are 50% higher than the global average, and import delays are twice as long. Yet, Grynspan emphasised that geography need not dictate economic destiny. “With digital tools, regional partnerships, and smart reforms, LLDCs can turn constraints into opportunities,” she said. [Read Secretary-General Grynspan’s full speech](#). UNCTAD’s vision rests on three interconnected pillars: digital transformation, regional integration, and trade facilitation, with digitalisation positioned as the most powerful tool to bypass physical borders.
Digital trade is a game-changer for LLDCs, enabling them to leapfrog traditional trade barriers. Although these countries contribute only 0.3% of global digitally deliverable exports, this sector is growing rapidly. Internet use in LLDCs has more than doubled since 2014, with mobile broadband now accessible to 86% of their populations. UNCTAD is supporting these nations in building digital infrastructure, regulations, and skills to compete globally. “If you can connect, you can compete,” Grynspan asserted, highlighting that digital services face no delays at borders, allowing LLDCs to access global markets directly. From e-commerce to digital services, this shift fosters innovation, entrepreneurship, and diversification beyond raw commodities.
Regional integration complements digitalisation by enhancing physical and economic connectivity. In East Africa, the Northern Corridor has reduced border crossing times at Malaba, between Kenya and Uganda, from three days to three hours. In Central Asia, the Middle Corridor, linking China to Europe, has cut transport times by over 50%. These improvements translate into faster shipments, lower costs, and expanded trade opportunities for landlocked producers. The African Continental Free Trade Area (AfCFTA) is further transforming the region’s trade profile, with 61% of intra-African trade now comprising processed goods, compared to 80% of Africa’s external exports being raw materials. This shift supports LLDCs by fostering regional markets that prioritise value-added industries and industrial development.
Trade facilitation remains essential, with UNCTAD’s ASYCUDA customs modernisation program delivering measurable gains in 66% of LLDCs. By digitising procedures, ASYCUDA has slashed clearance times by up to 90% and significantly boosted revenues. In Malawi, customs income surged by 42%, and over 600 logistics workers—40% of them women—were trained, building long-term capacity. At the summit, UNCTAD and Turkmenistan signed a $1.5 million, three-year agreement to launch ASYCUDA’s third phase, incorporating AI for smarter risk management and enhanced cross-border data exchange. With all of Turkmenistan’s import and export declarations already processed electronically, the country is positioning itself as a digital transit hub in Central Asia, demonstrating how digitalisation can revolutionise trade logistics.
The Awaza Programme of Action provides a shared roadmap, but implementation is critical. Grynspan emphasised that success hinges on outcomes: faster borders, more digital entrepreneurs, and greater value-added exports. UNCTAD’s role is to deliver these through integrated support and proven tools. However, fairer financial conditions are essential. At the recent Financing for Development Conference in Seville, UNCTAD called for reforming the international financial architecture, advocating for stronger roles for multilateral development banks and greater coherence in debt, trade, and investment terms. “Development cannot be financed in silos—it requires coherence and credibility in global rules,” Grynspan noted.
By prioritising digitalisation, UNCTAD’s strategy builds on early successes to accelerate the transformation of LLDCs, enabling them to bypass geographical constraints and tap into global markets. This vision ensures that their economic potential is no longer limited by their landlocked status.
– global bihari bureau
