Digital Inclusion in the Philippines
The Philippines has high social media usage and an expanding tech sector. However, millions in rural, low-income areas lack access to digital services. With only 28% of households having fixed internet in 2023, the country lags behind Vietnam (79%), Thailand (55%) and Malaysia (54%). This raises the question of whether bridging the digital divide can help alleviate poverty.
Digital Poverty: When Connectivity Becomes a Necessity
Digital poverty refers to the inability of individuals to fully engage with the online world due to insufficient access to devices, reliable internet, digital skills or financial means. This inability affects opportunities in education, employment and social interactions, as well as access to government programs, job listings, online marketplaces and distance learning.
The COVID-19 pandemic highlighted digital exclusion, as many students in lockdown faced online access issues, leading to dropouts and academic setbacks. This situation exemplifies how digital poverty exacerbates economic poverty, with more than 2.3 million people in the Philippines falling into poverty from 2018 to 2021 due to the pandemic’s economic impact.
Rural Impact: Digital Tools for Smallholder Farmers
Applications and SMS platforms, such as FarmHelp, e-Kadiwa and Rice Crop Manager, empower farmers by providing access to market prices, weather updates and direct buyers. These tools enhance farm management, improve connectivity and provide financial and technical support, resulting in higher earnings and reduced risks. The Philippine agriculture sector plays a crucial role in the economy, with predictions that by 2025, more than 70% of rural farmers will use mobile phones for essential agricultural and forestry management.
The Role of Mobile Money and Digital Banking
According to Global Market Magazine, about 66% of the Philippine population remains unbanked. The term “unbanked” refers to individuals who lack access to a bank or a similar financial institution. E-wallets like GCash and Maya are essential for savings, remittances and emergency funds in the Philippines.
These digital wallet providers are enhancing cybersecurity, interoperability and fund access while expanding their services to include investment products and global options for overseas workers. As digital wallets evolve, they are expected to drive further growth in the country’s digital economy. In 2024, the Philippines faced significant challenges regarding financial literacy, despite the growing adoption of e-wallets.
Current statistics reveal that only about 25% of Filipinos have a grasp of fundamental financial concepts, indicating prevalent deficiencies in skills such as budgeting, saving and debt management. While there have been some advancements in financial education, the overall progress remains slow. This underscores the urgent need for initiatives that make financial education more accessible and equitable.
The Gender and Youth Angle
Women in low-income households are less likely to own mobile devices or possess digital literacy, thereby widening the inequality gap. Youth digital entrepreneurs, including TikTok sellers and online freelancers, have significant potential for generating inclusive income with improved connectivity. Digital entrepreneurship involves entrepreneurs establishing businesses by utilizing online platforms, enabling them to reach a wider audience and leverage various internet resources and strategies.
The Philippines’ digital transactions in 2021 totaled 1.87 trillion pesos (about $598 billion), equivalent to 9.6% of the country’s GDP, according to the Philippine Statistics Authority (PSA). The digital economy, where products and services are sold online, is also directly influenced as the nation becomes more knowledgeable about the nuances of digital entrepreneurship.
Kimberly Yao is a notable digital entrepreneur and co-founder of CloudEats. This cloud kitchen serves approximately two million people in the Philippines and Vietnam, featuring 55 food and beverage brands. Before this, she gained experience in the traditional food and beverage sector and launched Boozy, a nationwide beverage delivery service.
Connection to Poverty
Digital tools in the Philippines can both alleviate and worsen poverty. High costs, weak infrastructure and limited digital skills block access for people experiencing poverty, leaving them unable to tap into opportunities in online work, education and financial inclusion. According to the 2024 Internet Poverty Index by the World Data Lab, the Philippines ranks 56th out of 169 nations in terms of internet poverty.
More than 18.33 million Filipinos (15.9% of the population) are unable to afford the third-highest internet plan, which is one gigabyte per month.
Barriers That Keep People With Low-Income Offline
Despite some progress on digital inclusion in the Philippines, key challenges remain. Infrastructure gaps, such as unreliable electricity and weak signal, hinder internet access for impoverished Filipino households. Additionally, high costs of data and devices relative to income pose a significant barrier.
Digital literacy remains another issue, as many struggle to leverage digital opportunities despite having access to them. Furthermore, there is a lack of coordination between ICT initiatives and poverty-alleviation programs.
Policy and NGO Solutions
Programs such as Free Wi-Fi for All, Tech4ED Centers and NGO initiatives teaching e-commerce skills aim to enhance digital access and alleviate poverty in the Philippines. The Free Wi-Fi for All program, managed by the Department of Information and Technology (DICT), offers free Wi-Fi hotspots across various municipalities, with approximately 11,475 facilities operational as of 2021.
USAID’s five-year Better Access and Connectivity (BEACON) project, launched in 2021, aims to improve digital connectivity in the Philippines. It supports community networks in delivering affordable internet to underserved areas. It also helps the government automate and digitize services to narrow the digital divide.
Digital inclusion in the Philippines is essential for providing opportunities rather than being viewed as a separate goal. Access to the internet, devices and digital skills is critical in combating poverty, with significant impacts on education and employment.
Bridging the Gap
The next frontier in the fight against poverty in the Philippines will not be waged solely in fields or classrooms, but also in the digital realm. With 97.5 million Filipinos, 83.8% of the population, already online at the start of 2025, the potential to harness technology for inclusive growth has never been greater. Yet, actual progress demands more than connectivity; it requires stronger investments in digital infrastructure, literacy and equitable access to ensure that no one is left behind.
By advancing digital inclusion in the Philippines, the nation can empower every Filipino to “log in” to opportunity. Digital inclusion in the Philippines helps bridge divides, fuel innovation and move toward a future where technology plays a central role in reducing poverty.
– Katelyn Leano
Katelyn is based in Plainfield, IL, USA and focuses on Good News and Technology for The Borgen Project.
Photo: Pixabay