An Appraisal of Electronic Transaction Proclamation N.1205/2020 in Regulating E-commerce in Ethiopia

Abstract

This paper attempted to examine the adequacy of the Electronic Transactions Proclamation No.1205/2020 in governing e-commerce in Ethiopia. The research questions focused on the legal challenges faced in e-commerce transactions in Ethiopia. Using a Doctrinal research methodology entailing desk reviews of documents, websites and online resources, the research found among others that the major legal challenges of e-commerce emanate from matters such as cyber frauds, contract formation, challenges in taxation of e-commerce, dispute resolutions and privacy. The legal challenges are saddled by other systemic challenges of lack of key infrastructure like electricity, Internet connectivity being costly, and by socio-cultural are among others. It further found that the legal and policy framework does not provide extensively and adequately address privacy and data collection and protection, cyber security mechanisms, e-commerce income taxation, consumer right protection and online dispute resolution mechanisms and thus require harmonization of regional laws to improve e-commerce. The research recommended a multi-prong approach covering from awareness creation among service providers and consumers; strict policing of online service providers by regulators; passing of data protection bill into law in order to enforce protection of privacy and personal data of e-commerce consumers. The research further recommended cooperation among key stakeholders nationally and regionally to control cybercrime; infrastructure development to improve Internet penetration; encourage e-government; e-taxation; and provision of e-signature or digital signature certifications and enforcement mechanisms to promote a safer cyberspace.