Brazil to boost digital transformation with IDB support

The Inter-American Development Bank (IDB) has approved a credit line of up to $1 billion to help Brazil push forward its digital transformation agenda through more and better connectivity, the adoption of new technologies by the private sector, digital talent building, and the modernization and improvement of public services.

The financing is part of a conditional credit line for investment projects (CCLIP) that will be made available through three different resource allocation channels: federal government agencies, subnational governments (state and municipal), and national or regional development banks. This mechanism will provide the country with a strategic financing instrument to foster integration and alignment with digital transformation public policies in four areas under the Brazil Plus Digital program:

• Digital Infrastructure, whose goal is to improve both the coverage scope and quality of broadband services by way of digital infrastructure that will contribute to Brazil’s social and productive development. In addition, this strategic objective will support the construction of datacenters and improve international connectivity, turning Brazil into an inclusive regional digital hub.
• Digital Economy, whose goal will be to encourage development, financing, and adoption of digital technologies both by the production sector and the population at large, as well as the promotion of regulatory testbeds and sandboxes, open initiative, public purchase of innovative solutions, collaboration among the private sector, governments and academia, and digital extension programs and new business models for small and midsized enterprises.
• Digital Government for the design and implementation of strategies for public institutions’ debureaucratization and enhanced services in order to contribute to increased public satisfaction, efficiency, effectiveness, and transparency in public management and a more competitive economy.
• Enabling factors that can contribute to the development of the human talent necessary to drive the digital transformation, digital literacy for the public in order to promote the use of digital tools and socioeconomic inclusion, development of comprehensive digital transformation strategies, and enhancement of the regulatory framework in crosscutting areas such as cybersecurity.

Ceará will be the first state to benefit from the CCLIP, with a $28 million loan under the Digital Government agenda aimed at implementing the digitalization of the Judiciary Branch of government, increasing its efficiency and user satisfaction. This program will help improve service delivery productivity and management effectiveness of the State of Ceará Court of Justice (TJCE, after its Portuguese initials).

The main beneficiaries of the State of Ceará program will be citizens and businesses using TJCE’s services, estimated at 2.5 million people, who will receive faster, more efficient services at lower costs. In addition, TJCE’s nearly 3,800 employees will also benefit from the program’s digital skills training.

The IDB loans associated with the credit line are for a 25-year term, with a 5.5-year grace period and an interest rate based on LIBOR. The State of Ceará will provide an additional $7 million in local counterpart funding.

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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.