IDB Approves $8M Loan to Boost Uruguay's Digital Skills and Support Internationalization of Companies

The funding, approved by the IDB’s Board of Executive Directors, will be implemented by the Universidad Tecnológica del Uruguay (UTEC).

The Inter-American Development Bank (IDB) has approved an $8 million loan to support Uruguay's efforts in developing digital skills for the internationalization of its companies, particularly those in knowledge-intensive sectors. The loan aims to enhance human capital by providing advanced digital skills training and improving the international competitiveness of Uruguayan businesses in industries involving technology and innovation.

Program Overview

The funding, approved by the IDB’s Board of Executive Directors, will be implemented by the Universidad Tecnológica del Uruguay (UTEC). The initiative is designed to align educational programs with the country’s productive sectors, particularly focusing on knowledge-intensive goods and services. The goal is to equip students with the advanced digital capabilities that are increasingly demanded by global industries, especially in high-tech and export-oriented sectors.

Expected Impact

The project is expected to directly benefit over 400 UTEC students, with special attention given to women, regional residents, and faculty members. The initiative will also offer approximately 45 scholarships, further expanding access to specialized education in digital technologies and international business. The program will extend its reach to 150 companies, including those in Uruguay’s key exporting regions, helping them internationalize their products and services. Additionally, around 90 firms will gain new opportunities to integrate qualified human capital and strengthen their international presence.

Key Actions and Focus Areas

A key feature of the program is the establishment of partnerships with international academic institutions to create graduate and continuing education programs, as well as specialized courses for teachers. These courses will focus on emerging technologies, climate change, and gender diversity, ensuring that Uruguay’s business leaders and educators are equipped with cutting-edge skills for the modern workforce.

The loan will also support the development of a more coordinated approach among Uruguay's business development institutions. This includes efforts to better assess the demand for advanced digital skills and provide tailored business development services to companies across the country.

Financial Details

The $8 million loan comes with an amortization period of 24.5 years, a six-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). This financial support is part of the IDB’s broader strategy to help Latin American and Caribbean countries adapt to new technologies and compete in the global economy.

By investing in digital skills and fostering international business growth, the IDB aims to help Uruguay leverage its human capital and business potential, positioning the country for sustained economic development in the global marketplace.