Enterprise development
New programme to close digital gap for 15,000 small businesses
The United Nations in the Philippines launched a new joint programme to bridge the digital divide and boost the competitiveness of enterprises through improved connectivity and support from UN agencies, including the ILO and government partners.
3 February 2025
MANILA, Philippines (ILO News) - A new joint programme, supported by the United Nations, was launched on 31 January to provide digital tools and training to at least 15,000 small businesses in underserved communities in the Philippines.
Officials from the government, development and diplomatic communities, and the private sector joined the launch. The new UN joint programme ultimately aims to strengthen the competitiveness of micro, small and medium enterprises (MSMEs) through improved connectivity.
The United Nations Joint Programme on Inclusive, Competitive, and Responsible Digital Philippines (Digital PINAS) will build a digital ecosystem for MSMEs in remote regions that face barriers to connectivity. The programme will also provide training to help entrepreneurs to grow their businesses in the digital economy.
The initiative is being implemented jointly by three UN entities: the United Nations Development Programme (UNDP), the International Trade Centre (ITC), and the International Labour Organization (ILO), in collaboration with the government, led by the Department of Information and Communication Technology (DICT), and potential private sector partners.
“Despite advances in connectivity and digital adoption, millions remain disconnected from progress. Women, indigenous communities, small entrepreneurs, and those in remote areas still struggle with limited access to digital tools and skills,” said DICT Secretary Ivan John Uy at the launch. “Digital PINAS is a declaration that we refuse to let barriers hold back our people. We are not just closing gaps; we are tearing down walls that have long excluded Filipinos from the opportunities they deserve.”
With a total budget of US$5 million, the joint programme will address policy, regulatory and systemic barriers to digital inclusion.
To achieve these goals, the Digital PINAS programme will use a three-pillar strategy: capacity building, support for the establishment of Digital Transformation Hubs in at least 30 geographically remote and underserved areas, and advocacy for policies and regulations that will promote digitalization and encourage investment in an inclusive digital ecosystem.
“The promotion of digital transformation as a catalytic opportunity is critical to accelerate the Sustainable Development Goals. This is especially relevant in the context of the Philippines and critical to supporting its ambition to be an upper-middle-income country. We are positioning Digital PINAS as a convergence point for integrated UN Country Team action to support a unified digital transformation agenda for the Philippines,” said Khalid Hassan, Director of the ILO in the Philippines, who opened the launch on behalf of the UN Resident Coordinator in the Philippines, Gustavo González.
Digital PINAS is funded through the United Nations’ Joint SDG Fund, an inter-agency mechanism for strategic financing of transformative actions toward achieving SDGs by 2030.
The Fund is supported by the European Union (EU), which pledged an initial 30 million euros for digital transformation efforts across the developing world, including the Philippines. Other supporters to the Fund include Belgium, Denmark, Germany, Ireland, Italy, the Republic of Korea, Luxembourg, Monaco, the Netherlands, Norway, Poland, Portugal, Saudi Arabia, Spain, Sweden and Switzerland.
Speaking at the joint programme launch, EU Head of Cooperation in the Philippines Marco Gemmer said: “We envision this initiative to inspire entrepreneurs, especially at the margins to take advantage of technology and innovation to grow their businesses and build confidence to showcase their products and services before a boundless digital marketplace.”
Farmer-entrepreneurs shared how simple digitalization efforts have helped their businesses grow. “We have farmers from Zambales who found a market in Manila by promoting their produce on social media,” shared Ms Mary Elaine Timbal, founder of the agribusiness startup Sakahon.
With a wider reach for their produce, “Our federation can now focus on strategizing for other things, like increasing our production to meet the demand created by our online presence,” Ms Fatima Ibanen added, President of the Igbaras Federation of Farmers Association.
To complement the programme’s investment, a key component of the initiative involves the mobilization of US$21 million in local government and private sector investments for digital products.