What's Happening?
The International Trade Centre (ITC) and DHL have renewed their long-standing partnership, formalized through a memorandum of understanding signed on September 16. This collaboration aims to support small and medium-sized enterprises (SMEs) in overcoming
logistical and other barriers to international trade. The expanded partnership will focus on enhancing SME capabilities in exports, supply chains, and logistics, working in conjunction with business-support organizations and ITC SheTrades Hubs. Since their initial collaboration in 2016, the organizations have implemented programs across more than 60 countries in Africa, ASEAN, Latin America, and the Caribbean. DHL’s GoTrade program, active since 2021, has provided training in logistics, e-commerce, and international trade to over 26,000 SMEs and 8,000 women-owned businesses. Additionally, a separate initiative with ITC’s SheTrades has offered technical assistance, logistics expertise, and shipping support to more than 4,000 women-led businesses across 60 countries. The ITC’s ecomConnect program also facilitated connections for over 400 SMEs with DHL support, resulting in preferential shipping arrangements that reduced costs by up to 60 percent in certain markets between 2020 and 2024.
Why It's Important?
This renewed partnership is crucial for fostering inclusive and sustainable economic growth by empowering SMEs, which constitute approximately 90% of global businesses, provide about 70% of employment, and contribute 70% of the global GDP. Despite their significant economic role, many SMEs face substantial hurdles in participating in international trade, particularly concerning logistics and market access. The collaboration between ITC and DHL directly addresses these challenges by combining ITC's expertise in market intelligence and SME development with DHL's extensive global logistics network. By providing training, technical assistance, and preferential shipping rates, the initiative helps small businesses, especially women-led enterprises, to navigate complex international trade landscapes. This support enables them to reach new markets, reduce operational costs, and enhance their competitiveness, thereby contributing to job creation and poverty reduction. The partnership also advocates for the inclusion of small business perspectives in global trade discussions, ensuring their voices are heard at decision-making tables.
What's Next?
The expanded partnership between ITC and DHL will continue to focus on strengthening the ecosystem of support for SMEs. Future efforts will involve deepening their work with business support organizations and ITC SheTrades Hubs to improve services for small and women-led businesses. The collaboration will also intensify advocacy for small businesses and women entrepreneurs in global discussions and high-level events, engaging both private sector organizations and government agencies. The goal is to help more small businesses overcome 'last-mile logistics barriers' and access new markets, as highlighted by ITC Executive Director Pamela Coke-Hamilton. DHL Express Sub-Saharan Africa CEO Hennie Heymans emphasized that the partnership aims to build ecosystems that enable businesses to grow with confidence, reach new customers, and unlock opportunities in international trade. This suggests a continued focus on practical support, knowledge sharing, and strategic advocacy to integrate SMEs more fully into the global economy.
Beyond the Headlines
The renewed partnership between the ITC and DHL extends beyond mere logistical support; it represents a strategic effort to address systemic inequalities in global trade. By specifically targeting women-led businesses and SMEs in developing regions, the initiative promotes a more inclusive form of globalization. The focus on 'last-mile logistics barriers' underscores a critical, often overlooked, aspect of international trade that disproportionately affects smaller entities. This collaboration also highlights the growing recognition of the private sector's role in achieving sustainable development goals, as DHL leverages its commercial infrastructure for broader societal impact. The emphasis on training and capacity building, alongside direct logistical aid, aims to create self-sustaining growth for these businesses, fostering long-term economic resilience rather than short-term fixes. This model could serve as a blueprint for other multinational corporations to engage in similar partnerships, contributing to a more equitable and accessible global marketplace.
