The Digital Ecosystem Country Assessment (DECA), a flagship initiative of the Digital Strategy, identifies opportunities and risks in a country’s digital ecosystem to help the development, design, and implementation of USAID’s strategies, projects, and activities. It informs USAID Missions and other key decision-makers about how to better understand, work with, and support a country’s digital ecosystem. 

The Armenia Digital Ecosystem Country Assessment (DECA) outlines key aspects of the country’s digital ecosystem and provides nine recommendations for creating a more inclusive, safe, and enabling environment. Informed by the Armenia Country Development Cooperation Strategy (CDCS) 2020-2025 and the U.S. Department of State Armenia Integrated Country Strategy (ICS), the DECA process included desk research, consultations with USAID/Armenia and the U.S. Embassy in Yerevan, and 69 interviews with stakeholders from civil society, academia, the private and public sectors, and international development organizations. 

Key findings include:

• As a landlocked country with infrastructure closely linked to that of its neighbors, Armenia’s first mile infrastructure may be subject to risks related to shifting geopolitical relations. Several major telecommunication companies in Armenia are undertaking initiatives to diversify their first mile solutions. 
• There is limited data on digital literacy in Armenia, but there are few targeted strategies aimed at enhancing digital literacy and cyber hygiene among the broader population.
• The Government of Armenia is committed to enhancing the country’s cybersecurity posture. Cybersecurity legislation is in draft form and multiple CERTs have been established. However, cybersecurity governance and workforce challenges persist.
• The Government of Armenia is actively pursuing digital transformation improvements through strategies like the Digitization Strategy and Public Administration Reforms Strategy. 
• Misinformation and disinformation pose threats to Armenia’s media environment. Armenia has experienced a rise in mis- and disinformation in recent years, particularly during events such as the COVID-19 pandemic, cross-border conflicts, and political events. 
• Armenia faces a significant skills mismatch in its digital talent pool. The formal education system has outdated curricula, neglects soft skills, and offers low professor salaries which discourages ICT talent. 
• Armenia’s financial sector is undergoing a rapid digital transformation, with the upgrading of payment systems a key priority. Proactive government regulations, the COVID-19 pandemic’s impact on consumer behavior, the entry of Google Pay and Apple Pay and other digital payments systems, and an influx of new residents due to Russia's war against Ukraine have accelerated the adoption of digital payments.
• Armenia’s e-commerce sector has experienced substantial growth over the past years, but gaps remain in the country’s regulatory framework, such as the lack of a dedicated e-commerce law and consumer protection issues.