DTI counts on ₧1-B USAID project speed up MSME digital evolution

THE Department of Trade and Industry (DTI) said it is hoping that the US Agency for International Development’s (USAID) program on strengthening digital economy will support the DTI’S electronic commerce-related targets.

During the public launch of USAID’S Strengthening Private Enterprise for the Digital Economy (SPEED) Activity, Trade Secretary Alfredo E. Pascual stressed that one of the top priorities of the trade department is to assist micro, small and medium enterprises (MSME) in digital transformation.

“With Strengthening Private Enterprise for the Digital Economy [SPEED], USAID can be DTI’S partner in empowering small and medium enterprises through digital transformation. One of DTI’S strategic actions is to upgrade, upskill, and upsize MSMES,” Pascual said.

The USAID SPEED is a five-year project that seeks to expand the participation of Philippines’s small and medium enterprises (SMES) in the digital economy.

According to the fact sheet released by USAID, SPEED has four objectives: to improve SME capacity and access to e-commerce platforms; expand and increase the use of epayment systems and other fintech innovations; improve the integration of e-commerce platforms with logistical supply chains; and increase consumer awareness and protection.

As for the project’s funding, Mary Kay Carlson, United States Ambassador to the Philippines, said that $18 million or P1 billion would be allotted to the said project.

“To help achieve these shared objectives, today we are launching USAID’S five year $18 million dollar or that’s P1 billion in Philippine peso, strengthening private enterprise for the digital economy program or SPEED. This partnership with the Philippine government aims to enable small and medium enterprises to participate safely, reliably and competitively in the country’s emerging e-commerce ecosystem,” Carlson said at the USAID SPEED public launch on Wednesday in Makati City.

Pascual also highlighted the benefits of digital transformation of micro, small, and medium enterprises (MSMES), noting that, “digitalized MSMES can operate more efficiently, reduce costs, reach bigger markets, and earn profits.”

For instance, the trade chief said, digital systems of enterprises can accumulate cash flow data on sales, use enterprise data for credit scoring and provide access to cash flow-based credit.

In pursuit of its digitalization goals, the DTI said it is also working with the Department of Information and Communications Technology (DICT) to establish an e-commerce platform that can be utilized by MSMES and will facilitate MSMES’ pivot from offline to online.