The Market Monitor Minding the Nation's Business
The World Bank has approved a $750 million development policy loan to accelerate digital transformation in the Philippines, aiming to enhance connectivity, competitiveness, and financial inclusion.
In a statement released Wednesday, the World Bank said the Second Digital Transformation Development Policy Loan is designed to reduce barriers to entry and investment in the broadband sector, fostering competition and improving internet connectivity nationwide.
The funding will also support government efforts to adapt to a rapidly evolving legal and regulatory landscape, boost efficiency and transparency in public services through digital technologies, and expand financial inclusion. This includes promoting secure digital financial services, enhancing customer protection, and upgrading the country’s payment infrastructure.
Additionally, the policy loan will be used to build trust in e-commerce, enhance logistics, create jobs in digital services, and position the Philippines as a competitive player in the global digital economy.
“Digitalization is a transformative force that can drive productivity-led growth and improve the efficiency of critical services such as transport, healthcare, education, energy, and agriculture in the Philippines,” said Zafer Mustafaoğlu, World Bank Country Director for the Philippines, Malaysia, and Brunei.
Mustafaoğlu emphasized that digital platforms can bridge service delivery gaps, ensure access to affordable financial solutions for individuals and businesses, and build resilience against future crises.
Highlighting the impact on micro, small, and medium enterprises (MSMEs), he noted, “Greater access to digital financial services enables such businesses to adopt innovative technologies and automation, boosting their competitiveness and contribution to the economy.”
This development policy loan reinforces the Philippine government’s commitment to advancing its digital transformation agenda and fostering sustainable, inclusive growth.