Earlier this year, the United States government initiated a five-year, US$ 18 million (P1 billion) partnership deal with the Philippine government in an effort to help the country’s small and medium-scale enterprises (SMEs) transition to mature e-commerce businesses.
Dubbed SPEED (Strengthening Private Enterprises for the Digital Economy), the program is to be funded by the U.S. Agency for International Development (USAID). Its primary objective is to allow Filipino SMEs to expand their reach into the country’s burgeoning e-business ecosystem.
The project will try to achieve this goal through the following measures:
- Improve the capacity of SMEs to adopt digital technologies;
- Support the integration of SMEs and e-commerce platforms in logistical supply chains;
- Strengthen awareness and protection for the rights of Filipino consumers; and
- Assist in increasing the usage of e-payment systems and other fintech innovations in the country
Helping drive post-pandemic recovery
According to a news story posted on the U.S. Embassy in the Phillippines’ website, SPEED supports the American government’s goal of helping the Philippines develop a robust, secure, and resilient digital economy. They see it as a key in helping drive the country’s post-pandemic recovery and long-term economic growth.
“As we all know, COVID-19 has fundamentally altered the way we do things, accelerating the shift toward e-commerce, digital platforms, and the digital economy in a post-pandemic world,” said MaryKay Carlson, US Ambassador to the Philippines, during the launch of the project. “SPEED signals the U.S. government’s strong commitment to supporting the Philippine government’s vision of a digital Philippines.”
During the event, private sector partners led by the Philippine Chamber of Commerce and Industry (PCCI) also launched the Philippine E-Commerce Alliance. This private sector-led coalition will promote reforms and best practices to boost the industry and the SMEs who rely on it.
The Alliance forms part of USAID’s 5-year “SPEED” project and aims to help transform 30,000 SMEs in the country. It also intends to facilitate the development of a national business agenda for financial inclusion and digital transformation.
A part of their objectives include changes to make e-commerce more efficient and secure for businesses and individuals to transact online, improving digital payments and logistics, and ushering more SMEs into global value chains.
Partnership to contribute toward a more resilient PH economy
The event, which was attended by trade secretary Alfredo Pascual, central bank governor Felipe Medalla, and top government and private sector officials in the country, had everyone in attendance on a high.
“Key in DTI’s support to scale MSMEs is to help them overcome constraints to their access to technology. We aim to enable MSMEs to embrace digital transformation,” DTI Secretary Alfredo Pascual said. “In this way, I believe that the DTI and the USAID’s directions to enhance SME capacities are aligned.”
He also emphasized the DTI’s support in developing the government’s E-commerce Adoption Platform (EAP) and the trade department’s planned Supply Chain Digitalization Project (SCDP) to digitize logistics and supply chains throughout the country.
For his part, BSP governor Felipe Medalla said, “The BSP is optimistic that the programs under SPEED will further support the BSP’s Digital Payments Transformation Roadmap objective to convert at least 50 percent of retail payment transactions to digital form by the end of 2023.”
“Collaborations and partnerships such as this will contribute toward a more resilient and stronger Philippine economy that promotes a high quality of life for all Filipinos,” he added.