Uruguay to promote MSMEs digital transformation with IDB support

Uruguay will promote the digital transformation of its micro, small and medium-sized enterprises (MSMEs) with a $15 million loan approved by the Inter-American Development Bank (IDB). The project will boost knowledge and use of digital solutions by Uruguay’s MSMEs, increase the supply of digital goods and services, and strengthen the offer of digital talent creation services in order to foster the country’s digital transformation.

Photo: ©IFAD/Pablo Corral Vega

It will also promote the institutional strengthening of the National Development Agency (ANDE) to ensure effective implementation of the MSMEs digital transformation program. Its end beneficiaries will be both Uruguay’s 11,000 MSMEs in need of goods and services for their digital transformation, and the 100-plus goods and services providers who can make this transformation possible.

According to a survey of micro-enterprises conducted by the Industry, Energy and Mining Ministry in 2017, only 70% of Uruguay’s MSMEs use the internet and have a website, compared with 79% in Chile and 78% in the OECD group of countries. Local MSMEs also make scant use of e-banking and advanced digital technologies. Less than 5% of them hire information technology and communication professionals, compared with 15% of the European Union’s small enterprises and 45% of the EU’s medium-sized enterprises.

The IDB’s $15 million loan is for a 25-year term, with a five and 5.5-year grace period and an interest rate base on LIBOR.

This article was originally published by IDB.