WB approves $750 mln loan to boost Philippines' digital transformation

The World Bank (WB) approved a loan of $750 million on Wednesday to help boost digital transformation in the Philippines.

According to the bank’s press release, the Second Digital Transformation Development Policy Loan supports the Philippines' efforts to transform the country's digital sector through enhanced connectivity, digitalisation, a dynamic innovation ecosystem, and private sector partnerships.

Specifically, the loan will help the country's efforts to lower barriers to entry and investment in the broadband sector, promote competition, and improve connectivity.

It will also support government agencies to adapt to a dynamic legal and regulatory environment, boosting efficiency and transparency through digital technologies; expand financial inclusion by promoting secure digital financial services, enhancing transparency and customer protection, and improving payments infrastructure; and improve trust in e-commerce, expand logistics, create jobs in digital services, and enhance the Philippines' competitiveness in the digital sector.

The WB emphasized that greater digitalization is crucial for an economy like the Philippines, characterized by a large population spread across many islands. It added that digital connectivity and Filipinos' participation in the digital economy are vital to bridging geographic and socio-economic divides.

Zafer Mustafaoglu, WB country director for the Philippines, Malaysia, and Brunei said that digitalization is a transformative force that can drive productivity-led growth and enhance the efficiency of critical services such as transport, healthcare, education, energy, and agriculture in the Philippines.

"By leveraging digital platforms, the country can bridge gaps in service delivery, make sure that individuals and firms have access to affordable financial services and digital solutions that meet their needs, and build resilience against future crises and shocks," he said.