BOI-Approved Inclusive Businesses Plan to Source Php2.99B from MSEs

The Board of Investments (BOI), as the government champion for local and regional Inclusive Business (IB) initiatives strongly pushes for the increased adoption of IB by including it as one of the priority activities in the current Investment Priorities Plan. In 2018, the first full year of implementation of the IB policy, the agency approved five (5) IB models. These five projects in agriculture- and tourism-based industries collectively target to source Php 2.99 billion worth of goods and services from micro and small enterprises (MSEs) by the third year of their commercial operations, and directly hire at least 185 and engage over 1,000 individuals, at least 30% of which are women, from the marginalized sectors.

“The almost Php3 billion worth of goods and services being sourced from MSEs translate to decent jobs and livelihoods in the areas where these projects operate and to think that these are coming from only five projects. Just think of the impact that ten or a hundred projects will create in the countryside if we can get more companies to engage in IB.” Trade Secretary Ramon Lopez said.

IB is looked at as one of the most viable options in the development of a dynamic and more inclusive agricultural sector. Three of the first five BOI-approved IB projects are from this sector. The first approved IB project in agriculture is Cargill Joy Poultry Meats Production, Inc. (C-Joy), which invested on a Php2.08 billion integrated dressed chicken processing plant with a capacity of 79,465MTPY in Sto. Tomas, Batangas. For this project, the company plans to engage at least 400 marginalized individuals as suppliers of goods and services, and source at least Php1.536 billion from MSEs. The second approved project is by Millennium Specialty Coco Products, Inc. (MSCPI), a Php994 million integrated coconut processing facility located in Panabo City which can process around 200MT of fresh coconut daily. The project plans to engage around 460 marginalized individuals as suppliers, tollers and employees, and source Php223.9 million worth of raw materials and services from MSEs. Biotech Farms Incorporated’s Php1.1 billion rice milling facility in Tantangan, South Cotabato is the third approved project. The company plans to source rice paddy for its milling operation from farmers in SOCCKSARGEN, Maguindanao and North Cotabato. This project plans to source Php999 million worth of materials and services from MSEs, and engage at least 320 marginalized individuals as part of its core business operations.

For Tourism, the first two approved IB projects signals huge contribution of IB to sustainable and inclusive tourism. The first registrant was Seda Lio Resort, a Php1.674 billion tourism facility owned and managed by Econorth Resort Ventures, Inc. in the sprawling Lio Tourism Estate in El Nido, Palawan. This 153-room resort can showcase the biodiversity and natural attractions of the surrounding Bacuit Bay. The resort plans to directly hire at least 25 low-income individuals as employees, and source at least Php60 million from MSEs. The second registrant is Canvas Duawon Hotel and Resort, a Php2 billion 308-room tourist accommodation facility in Marigondon, Lapu-lapu City. This facility plans to source raw materials and services amounting to Php380.47 million from MSEs, and directly hire at least 30 marginalized individuals.

“Investment should not only be about size; it should also provide added value in the area where the project operates. Inclusive Business is our means to increase substantial investment especially in human capital by enhancing entrepreneurial drive of the people at base of the pyramid.” said Trade Undersecretary and BOI Managing Head Ceferino Rodolfo.

More proactive work still has to be done to see concrete impact of IB in rural development and poverty reduction. As BOI Assistant Secretary Fe Agoncillo-Reyes said, “there are still so many gaps that need to be filled in the development of the value chains of IB projects. If we can align the support services of national government agencies to support of these projects, we can create a bigger impact and be more assured that government resources are put to good and lasting use.”

For more information on Inclusive Business Models in the Investment Priorities Plan, visit www.boi.gov.ph or call (02) 896-9212.