Spotlight: Ecuador's new digital transformation policy

Ecuador's telecommunications ministry (Mintel) published a new public policy on digital transformation last week, aimed at promoting digital transformation over the next five years.

The policy outlines a reference budget of US$92.8mn, of which US$36mn is allocated to digital culture and inclusion, and US$34.5mn to interoperability and data processing projects.

An estimated US$10mn is earmarked for cybersecurity, with the remainder directed to digital infrastructure, the digital economy, emerging technologies for sustainable development and digital government.

Key objectives of the policy include promoting emerging technologies, implementing data management models, strengthening digital infrastructure in datacenters, expanding cloud service provision, boosting digital skills, supporting e-commerce and ICT adoption, and enhancing interoperability services and the use of personal and open data in both the public and private sectors.

Digital infrastructure

According to the policy, digital gaps persist in Ecuador, especially between urban and rural areas.

In 2024, 66% of households had internet access, up from 62.2% in 2023. Internet penetration in rural areas was 48.1%, while in urban areas it reached 73.6%.

Meanwhile, 57.7% of people nationwide owned a smartphone. In rural areas, this figure was 42.0%, compared to 64.9% in urban areas.

Digital illiteracy fell by 2.2 percentage points to 5.4% in 2024. In rural areas, digital illiteracy stood at 14.1%. Ecuador aims to reduce national digital illiteracy to 4.6% by 2030.

The document did not set specific goals for digital infrastructure deployment, as those targets are included in the national telecommunications plan.

However, it emphasized that expanding digital infrastructure and broadband services is essential for the success of the digital transformation agenda.

Technology adoption in the public sector

According to the United Nations e-government index, Ecuador ranked 67th globally.

National achievements include strengthening digital infrastructure, implementing comprehensive digital policies and strategies, and improving citizen participation through digital platforms.

Ecuador expects that 70% of executive branch procedures will be entirely online by 2030, up from a baseline of 28% in 2023.

In terms of information security, 100% of institutions within the executive branch are expected to implement the government information scheme by 2027, up from 0% in 2024. Interim targets are 30% in 2025 and 60% in 2026.

Private sector

The local industry, comprising around 700 companies, is predominantly made up of SMEs.

Ecuador plans to increase the percentage of small and medium-sized enterprises using ICT from 18.7% in 2024 to 25.9% by 2030.

The strategy also includes measures to promote the adoption of e-commerce.

It proposes strengthening the digital ecosystem to support research, development and innovation in emerging technologies across environmental and industrial sectors.

This year, Ecuador also aims to begin tracking a new indicator related to the adoption of emerging technologies in industry. A survey planned for 2025 will establish a baseline, after which a target will be projected for 2030.