IDB President advocates digitalization of Latin American companies and support for SMEs

RIO DE JANEIRO, BRAZIL – Inter-American Development Bank (IDB) President Mauricio Claver-Carone on Tuesday (14) called for the progressive digitalization of companies within the framework of the post-covid recovery, and for support to SMEs as drivers of an increase in the region’s exports.

“If our companies are digitized, it will be easier for them to integrate into regional and global value chains. And it will be much easier for them to attract clients abroad and to be able to export,” said the IDB head Mauricio Claver-Carrone at an event at Paraguay’s Ministry of Industry and Trade.

Based on a recent survey, Claver-Carone pointed out that “5 out of 10 companies in the region use e-commerce platforms for exports and 74% of them will start using this type of platforms because of the pandemic.”

In this context, he reaffirmed support for small and medium-sized enterprises as “one of the key components of our 2025 strategic plan to reinvest in the Americas and post-covid sustainable growth in our region.”

“Nearly 99% of businesses across our region are SMEs and they account for over 65% of formal employment. Exporting SMEs pay better wages to their workers, with 42% higher salaries and have higher sales levels, almost 55% more than their exporting peers, generating 244% more jobs,” he added.

However, he pointed out that “SMEs face the challenge of lack of resources and access to financing,” which he said is an area where the IDB can help.

PARAGUAY EXPORT

Claver-Carone made the statement during the presentation of “Paraguay Export,” a platform to promote exports and attract investment to the South American country with the support of the IDB through ConnectAmérica.

He referred to the IDB’s support for the Paraguayan government’s national logistics plan, which he defined as “a road map that includes policies, projects and initiatives to make the most of Paraguay’s potential.”

In this respect, he emphasized that “today Paraguayan goods and services have access to 36 new international markets.”

He added that the foreign investment attraction doubled in 2019, with US$7 billion coming from 49 countries, compared to nearly US$4 billion in 2011 from 19 countries.

He also recalled that in 2020 Paraguay saw its exports grow at a rate of close to 7%. “But, even more important is that they increased by over 20% in the first quarter this year compared to the same period last year, representing the second strongest rebound in South America,” he said, indicating that food was the sector that contributed the most to this rise.

During an earlier speech, Paraguayan Minister of Industry and Trade Luis Alberto Castiglioni said that his government proposes Paraguay “as a model of development,” focusing on the establishment of investments.

“At this time we have a surplus in our trade balance. We have exported more than we import, over US$1.5 billion. That not only reflects the export potential, but also what is being done,” the Minister said.

He also pointed out that this potential will be encouraged by “Paraguay Export,” the presented content website, by enabling local companies to explore new markets and providing great opportunities.