Colombia to receive millionaire loan from CAF for digital transformation Finance | Economy

Colombia to receive millionaire loan from CAF for digital transformation  Finance |  Economy

The Development Bank of Latin America (CAF) approved a loan to promote the digital transformation of Colombia’s public sector and thereby generate social and economic value, encourage productivity and favor the well-being of the population.

With this, the unit wants to contribute to the reactivation strategy in the event of the impact of the COVID-19 pandemic.

(Lee: Significance and functions of CAF in Latin America)

The loan would be $500 million And its investments will focus on leveraging data and artificial intelligence to promote the strategic use of digital technologies, offer quality digital public services, and improve public policies.

This loan implies support for the progress made by the Colombian government in recent years in terms of digital transformation. The funds will help in digital modernization of the state, accelerate economic recovery and further streamline the country’s public managementsaid CAF Interim Executive President Reni Alberto López and will be replaced by Colombian Sergio Diaz-Granados from next September.

Resources will be allocated for the State’s Digital Transformation Assistance Program for Economic Reactivation, that seeks to reduce barriers preventing the incorporation of digital technologies into public institutions, generate economic and social value through new processes and products involving the use of technology, To intervene in the field of digital transformation in various institutions and promote the development of data governance and artificial intelligence in view of its role as accelerators of digital transformation.

(See: Who is the new CAF President Sergio Diaz-Granados?)

Similarly, there is a desire to strengthen the institutional framework and develop capabilities in the state so that the country can restart the growth path when it was hit by Covid-19 and supporting the efforts of the government.

CAF has been with this country’s digital transformation agenda Advice and technical assistance in areas such as Public Innovation, Data Governance, Artificial Intelligence, Regulatory Streamlining and Government Entrepreneurship.

Over the past five years (2016–2020), it approved operations of $9,164 million for Colombia, representing an average of $1,833 million per year, which is 14% of the total approved by CAF over the said period. Is equal to.

(See: How can women reactivate SMEs across borders?)

Over the same period, total disbursements amounted to $9,803 million (19.8% of total disbursements to shareholder countries). And, as of December 2020, Colombia’s portfolio reached $3,036 million, equivalent to 10.6% of CAF’s portfolio.

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About the author: Seth Grace

Seth is an all-around geek who loves learning new stuff every day. With a background in Journalism and a passion for web-based technologies and Gadgets, she focuses on writing about on Hot Topics, Web Trends, Smartphones, and Tablets.

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