The private sector and the digital economy play pivotal roles in the economic development of any nation, and Kosovo is no exception. The manner in which business is conducted today differs significantly from practices before the turn of the millennium. The digital economy presents unparalleled opportunities, revolutionizing economies, markets, and the dynamics between organizations, suppliers, and customers. It has become a crucial driver of growth, innovation, and job creation. In contemporary times, social networks and online platforms have also integrated seamlessly into the digital economy landscape, further enhancing its significance. Moreover, the digital economy represents a promising sector for propelling Kosovo’s economic advancement.
A key prerequisite for accelerating the development of e-commerce and e-business is the establishment of an electronic identification and authentication system, commonly referred to as Electronic ID systems (eID). While individuals and businesses are increasingly using the internet for tasks that previously required in-person interactions, there remains a challenge in completing online transactions that necessitate reliable identification, such as accessing government services or refinancing mortgages. Electronic identification also significantly enhances SMEs’ capacity to engage in e-commerce while bolstering transaction security.
In Kosovo, businesses are generally in the early stages of adopting internet and other electronic services for their operations. Nonetheless, it’s noteworthy that the population of Kosovo is progressively becoming more adept in this domain. For example, many SMEs in Kosovo have ventured into social media and established business pages on platforms like Facebook. Moreover, with the backing of the European Union, the government has initiated the implementation of the Electronic ID system (eID) for Kosovo. This EU-funded project commenced earlier this year and is anticipated to conclude in early 2024. The primary focus of the project is to cultivate a robust e-business and e-commerce ecosystem, enhance electronic service delivery for citizens and businesses, and elevate the efficiency and productivity of the private sector through the utilization of ICT.
Ahmet Jetullahu, representing the NGO Prishtina Rea, which is actively involved in the project’s implementation, elucidates that the creation of a widely-accepted form of electronic identification will not only enhance the security of online applications for individuals but will also facilitate the provision of an extensive range of innovative and productivity-boosting products and services by both the public and private sectors. These services often require confirmation of one’s identity or a relevant aspect thereof. In his view, this project lays the foundation for the unrestricted utilization of the digital realm for both business and official personal purposes.
He underscores that the primary objective of the project is to ensure secure digital identification for individuals and businesses alike. This implies that all essential business documents, including licenses, business registrations, certificates, and more, will be accessible through a mobile phone application as part of an eID solution. AhmetJetullahu elaborates on this aspect, stating, “The core aim of the project is to establish a secure digital identification system for individuals and businesses. Consequently, essential business documentation, such as licenses, business registrations, certificates, and more, will be conveniently accessible via a user’s mobile phone application, forming an integral part of the eID solution.”
In addition to the software solution, the project will offer comprehensive training to institutions at both central and local levels to ensure the effective utilization and implementation of the electronic identification system. Mr. Jetullahu affirms, “This initiative will significantly expedite Kosovo’s transition into the digital realm, fostering an environment where businesses and financial institutions are motivated to integrate and harness the advantages of the digital system.”
About the project
The overall objective of the project is to increase the efficiency and productivity of the private sector through increased use of ICT, create proper and safer e- business/e-commerce ecosystem, and improve electronic service delivery for citizens and businesses. This action will contribute to Kosovo government efforts to digitalise and increase competitiveness and profitability of Kosovo businesses. By providing a proper e-ID system and a good environment for e-business/e- commerce, interoperability between Kosovo and Member States would be more productive and more efficient. The project is implemented by a consortium led by Evoluxer.
Photo credits: Prishtina Rea
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