The Inter-American Development Bank (IDB) and the Brazilian Development Bank (BNDES) have joined forces to accelerate digital transformation across Brazilian states and municipalities. This initiative, backed by a substantial $180 million financing package, aims to enhance public services and foster digital inclusion.
Financing Details
The IDB has approved a $150 million loan to implement the Federal Program for Digital Government and Infrastructure (PRODIGITAL), in collaboration with BNDES, which contributes an additional $30 million. This financing will support digital transformation projects in municipalities with over 100,000 inhabitants, Brazilian states, and the Federal District, with eligible projects receiving between $2 million and $40 million.
Objectives and Impact
PRODIGITAL aims to bridge the funding gap for digital transformation projects in Brazil, providing technical assistance to enhance institutional capacities at the state and municipal levels. The program seeks to improve digital public services, promote digital literacy, and increase connectivity, thereby fostering transparency and efficiency in public services.
"Digital services, both in the public and private sectors, have advanced very rapidly in Brazil and have made the country a reference in the field. With this partnership, we will contribute to bringing these advances to more Brazilian states and municipalities," said Ilan Golfajn, president of the IDB.
Case Study: Bahia's Digital Transformation
The State of Bahia is set to receive $42 million from the IDB to advance its digital transformation efforts. The Bahía Mais Digital program will enhance digital public services, promote inclusivity, and streamline government operations. This initiative is expected to save society $21.4 million and local governments $41.7 million over five years.
Amazonia Forever Program
In a related effort, the IDB and BNDES are preparing a $900 million financing package to support small businesses in the Brazilian Amazon. This initiative, part of the Amazonia Forever program, aims to promote sustainable economic activities while preserving the environment.
Federal Program for Digital Government and Infrastructure (PRODIGITAL)
