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A five-year joint Philippines-USAID program will expand the role of Filipino SMEs in the digital economy and improve integration of e-commerce platforms with logistical supply chains
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The $18-million Strengthening Private Enterprise for the Digital Economy (SPEED) aims develop a comprehensive digital transformation framework to enable local SMEs to participate in the country’s emerging e-commerce ecosystem
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US Ambassador to the Philippines MaryKay Carlson said the program’s goal is to transform at least 30,000 SMEs across the country into more mature and bigger enterprises
The Philippines and the United States Agency for International Development (USAID) launched on January 11 an $18-million (almost P1 billion), five-year program to increase participation of small and medium enterprises (SMEs) in the digital economy and improve integration of e-commerce platforms with logistical supply chains.
The USAID-funded Strengthening Private Enterprise for the Digital Economy (SPEED) will develop a digital framework that would enable local SMEs to take part in the country’s emerging e-commerce ecosystem and to help build a resilient digital economy for the Philippines.
“Under the SPEED project, USAID will continue to work with the Philippine government and private sector partners, including technology experts and innovators, to create an efficient and interoperable logistics and digital payments ecosystem, and to assist in the establishment of domestic and cross-border trade processes to promote inclusive business development and increase SME participation in global value chains,” US Ambassador to the Philippines MaryKay Carlson said in a speech at the launch on January 11.
Carlson said the goal is to transform at least 30,000 SMEs across the country by boosting their operational efficiency, productivity, and sales, and by expanding their opportunities to grow into more mature and bigger enterprises.
USAID SPEED will work with its government partners, including the Department of Trade and Industry (DTI) and Bangko Sentral ng Pilipinas (BSP), and the private sector to co-create solutions and innovate market-building activities to help SMEs transition to mature e-commerce businesses.
She said the project will assist DTI to achieve its goal of onboarding thousands of SMEs onto the various digital platforms, and help the BSP reach its target of 50% electronic payment transactions in 2023 and higher e-payments uptakes in succeeding years.
Moreover, Carlson said USAID SPEED will explore collaboration with other government agencies, such as the Department of Agriculture, to expand agri-business e-commerce and help address challenges in agriculture supply chains.
The program also aims to strengthen partnership with the private sector to drive innovation and co-creating market-oriented solutions to unlock the vast potential of the digital economy.
The SPEED project will focus on four main objectives:
- Improve SME capacity and access to e-commerce platforms
- Expand and increase the use of e-payment systems and other financial technology (fintech) innovations
- Improve the integration of e-commerce platforms with logistical supply chains, and
- Increase consumer awareness and protection
As part of the third objective, SPEED will convene market system actors and institutions to enable an efficient and transparent logistics ecosystem that will improve SME inclusivity in the larger ecosystem and address delays and the high cost of domestic and cross-border trade.
SPEED will also enhance market competition to facilitate faster growth and more innovation in logistics, especially in express delivery services to support SMEs.
The project will work with the industry to expand the logistics network to cover underserved regions outside Metro Manila through the development of an interoperable and integrated logistics network.
Trade Secretary Alfredo Pascual, in a speech at the launch, highlighted the benefits of digital transformation to micro, small, and medium enterprises, saying “digitalized MSMEs can operate more efficiently, reduce costs, reach bigger markets, and earn profits.”
