Digital Solutions for Hard-Hit Economic Sectors: Helping sectors heavily affected by COVID-19 adapt using digital technology

Start of implementation: 2021

Technology service providers: UNAWA, Mayani

ITD’s Partner ADB Department: Economic Research and Development Impact Department

In line with ADB’s Operational Priorities:

·        Addressing remaining poverty and reducing inequalities

o   Quality jobs generated

o   Access to opportunities increased for the most vulnerable

·        Promoting rural development and food security

o   Efficiency of agricultural value chains improved

·        Strengthening governance and institutional capacity

o   Enhanced governance and institutional capacity for service delivery

Micro, small, and medium-sized enterprises (MSMEs) are the lifeblood of economies of developing countries in Asia and the Pacific. Approximately 97% of the enterprises, 56% of the workforce, and 29% of the economic output are from MSMEs. These enterprises, however, were also highly vulnerable to the impacts of the COVID-19 pandemic.

 ADB launched the “Digital Solutions for Hard Hit Economic Sectors” challenge in August 2020 to crowdsource solutions that would help usher the digital transformation of businesses, particularly MSMEs. Out of 72 teams, two were selected to proceed with testing their proposed solutions: Mayani and UNAWA, both from the Philippines.

 Mayani is a social enterprise that helps smallholder farmers connect to broader markets. The team aimed to address supply side issues by improving its network of farmer cooperatives and associations (FCAs). They also sought to optimize pricing for both farmers and consumers by bringing down transaction costs. In addition, the team aimed to develop its proprietary Mayani Agri Platform, which was intended to help match agricultural supply and demand to maximize farmers’ profit, align the crop production cycle with market demands, and reduce food waste.

 Mayani signed separate Memoranda of Understanding with the Philippine government’s Department of Trade and Industry and Department of Agriculture, as well as with FCAs, between March and May 2021. Three farmers’ cooperatives from the Cavite, Laguna, Batangas, Rizal, and Quezon (CALABARZON) region were engaged to test the Mayani Agri Platform. They were also provided a module in Filipino with information on what the tool was and what benefits the farmers could enjoy by using it.

The second team, UNAWA, aimed to support the revitalization of the local tourism industry, which was heavily affected by COVID-19. Its implementation focused on the enhancement of its app Pasaporte, which streamlined the collection of tourist information, the Conservation and Sustainable Tourism Fee, and contract tracing data. The aim was to provide visitors with a safe, secure, and seamless travel experience while also providing local governments with data.

UNAWA tested the app in Taytay, a town in the province of Palawan in the Philippines. Work commenced on the platform, with the UNAWA team designing Pasaporte to match the needs of the municipality. Three testing runs took place in the latter half of 2021, with six sites included in the monitoring: Fort Sta Isabelle, Pier, Lake Manguao 2, Dabangan Island, Kuyawyaw Falls, and Pabellon Island. Local stakeholders were trained on how to use the app. In addition, a marketing campaign was conducted to promote Pasaporte, alongside Taytay reopening its doors to tourists.

Visitors of Taytay underwent a three-step process to get a Taytay Pasaporte. After making an online hotel reservation, they needed to pay the corresponding fee for Pasaporte, which they claimed at the tourism office. They also received emailed QR codes, which they presented at the hotels, tourist attractions, and participating establishments.

Mayani increased its smallholder farmers’ base network from 5,000 to 8,000. In addition, it established a market/consumer base of over 10,000 consumers and 200 business-to-business stores. Mayani was able to expand the reach of the smallholder farmers through multi-stakeholder partnerships. Three farmers’ cooperatives who tested Mayani Agri Platform are now using the digital tool to provide information to Mayani on their crop production cycles. Mayani was also able to expand its network to 65,748 smallholder farmers coming from Regions CAR, I, II, and CALABARZON. It linked farmers to over 230 business-to-business stores and touchpoints, which include major companies. This resulted in around 50% increase in the incomes of farmers, many of whom are women. It also helped reduce post-harvest losses by about 20%. 

Meanwhile, Pasaporte supported the economic recovery of Taytay, enabling the municipality to safely welcome tourists and generate jobs in the tourism sector despite the pandemic. Revenues from tourism fees were used to support day-to-day operations of the municipal tourism office, as well as environmental conservation efforts, capacity building of tourism stakeholders, and infrastructure development projects in Taytay. The Pasaporte program was adopted by the local government unit of Taytay on 1 May 2023 to support its tourism office. UNAWA and the local government are continuing their partnership.