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

The financial institution said in its press release that the Second Digital Transformation Development Policy Loan supports the Philippines’ efforts to transform the country’s digital sector.

It said the loan would develop the country 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.

The multilateral lender said that greater digitalisation was crucial for an economy like the Philippines, characterised 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, World Bank country director for the Philippines, Malaysia, and Brunei, said digitalisation was a transformative force that could 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,’’ Mr Mustafaoglu said.

(Xinhua/NAN)