Landlocked developing countries can unlock trade opportunities through regional cooperation, digital readiness and targeted reforms, says UN Trade and Development (Unctad).

With the right policy tools and partnerships, landlocked economies can overcome systemic disadvantages and reposition themselves as vital hubs within their regions, said Unctad secretary-general Rebeca Grynspan.

Landlocked economies face transport costs 50% higher than the global average and wait twice as long for imports. Though home to more than 7% of the world’s population, these countries account for 1.2% of global trade and this figure has remained unchanged for more than a decade.

The Awaza Programme of Action was developed during a UN summit this week in Awaza, Turkmenistan, focused on the future of landlocked developing countries.

The Awaza approach focuses on three interconnected pillars, namely regional integration, digital transformation and trade facilitation. Each offers a pathway to reduce dependence on raw commodities, improve connectivity and enable diversification.

However, the real test is implementation, and success depends on outcomes, including faster borders, more digital entrepreneurs and greater value added in exports, Grynspan noted.

Further, digitalisation is emerging as the most powerful equaliser in global trade, she highlighted.

Unctad is helping landlocked developing countries build the infrastructure, regulations and skills to compete. Internet use in these countries has more than doubled since 2014, with mobile broadband now reaching 86% of the population.

Digital services are not held up at borders, and though landlocked countries represent just 0.3% of global digitally deliverable exports, the sector is growing fast, offering a chance for such countries to make a leap forward.

“If you can connect, you can compete. But potential only matters if you act on it,” she said.

Additionally, regional integration has already shown results. The Northern Corridor in East Africa has cut border crossing times between Kenya and Uganda at Malaba from three days to just three hours.

Similarly, the Middle Corridor in Central Asia links China to Europe and has cut transport times by more than half.

“These changes aren’t abstract. They translate into faster shipments, lower costs and expanded trade for landlocked producers,” Grynspan said.

Similarly, the African Continental Free Trade Area is also shifting the trade profile of the region. While 80% of Africa’s exports outside the continent remain raw materials, 61% of intra-African trade now consists of processed goods.

This shift is especially relevant for landlocked countries, which benefit when regional markets support added value and industrial development, she noted.

UNCTAD PROGRAMME

Meanwhile, trade facilitation remains critical. Unctad's Asycuda customs modernisation programme, used in 66% of landlocked developing countries, has thus far transformed customs systems by digitising procedures, reducing clearance times by up to 90% and significantly boosting revenues.

In Malawi alone, customs income rose by 42% and over 600 logistics workers, 40% of them women, were trained in the system, creating long-term national capacity, Unctad highlighted.

Unctad and the government of Turkmenistan have signed a new agreement to launch phase 3 of Asycuda, with a $1.5-million investment over three years.

This initiative will strengthen digital customs, apply AI tools for smarter risk management and improve 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 the region, Grynspan said.

Further, many landlocked developing countries need more support, as well as fairer terms in debt, trade and investment.

Unctad has again called for the reform of the international financial architecture, including a stronger role for multilateral development banks and greater coherence across systems.

“Development cannot be financed in silos; it requires coherence across systems and credibility in the rules that govern them,” Grynspan said.