The ICT projects multilaterals are supporting in Latin America

Multilaterals play an important role in investing in information and communications technology in Latin America.

Most investments this year are aimed at mitigating the effects of the pandemic, helping companies’ recovery, boosting digitization of the state, and promoting research and development programs.

In the second quarter, the Inter-American Development Bank (IDB) was particularly active in the sector.

BNamericas presents an overview of multilaterals’ involvement in the regional ICT sector.

Argentina

Regional development bank CAF will contribute to the national connectivity plan apart from investing US$100mn in Santa Fe province’s connectivity program. Santa Fe will deploy almost 3,400km of fiber optics to provide connectivity to nearly 150,000 residents of low-income neighborhoods.

Meanwhile, IDB approved a US$230mn loan for the national innovation system.

This loan will support innovation for companies that produce goods and services and research at non-profit public and private institutions.

Brazil

IDB approved a US$2bn loan for connectivity and broadband projects. Half will go to the Amazon region.

Part of this loan corresponds to a US$1bn financing line for the Brasil Más Digital program, announced in April.

IDB’s resources will fund the pillars of infrastructure, digital economy, digital government and enabling factors.

The investment will allow collaboration in the development of broadband infrastructure, new datacenters and international connectivity.

Other objectives include the promotion and development of digital technologies in the productive sector, digitization of the state, and fostering talent to promote digital transformation.

Colombia

IDB will allocate up to US$500mn for the digital transformation of the justice system.

The first operation, involving US$100mn, is expected to increase the efficiency and transparency in judicial processes and improve citizen service. The objective is to move from paperwork to digital processes.

And CAF is studying a US$500mn credit line for the government’s digital transformation program to boost economic reactivation.

Paraguay

IDB and Microsoft are implementing an early warning system to detect indicators of fraud in public purchases.

The red flags system is based on the Open Contracting Data Standard (OCDS) and integrates analytical tools and artificial intelligence so that governments can identify risks of fraud and corruption.

Peru

IDB approved a US$300mn credit line to promote business innovation and close the technological gap for micro, small and medium-sized enterprises (MSMEs).

The first operation involves US$100mn and will benefit projects selected through competitive calls.

Mexico

The International Finance Corporation (IFC) announced a US$6mn investment in ProducePay, a fintech that offers financing to agricultural producers, real-time data and analytics.

More than 80% of ProducePay financing goes to farmers in Mexico.

Uruguay

IDB will invest US$15mn to institutionally strengthen national development agency Ande’s MSME digital transformation program. The program will benefit 11,000 businesses.