Week 13, 2024 - Latin America

Newsletter
The OECD Digital Government Index evaluates the efforts made by governments to establish the foundations necessary for a digital transformation of the public sector that is coherent and sustainable. The recent update highlights the significant role digital government played during the COVID-19 pandemic in ensuring the continuity...
Published on
May 3, 2024

"The boundaries are not in outer space but in ourselves... We have to break our own boundaries and go beyond them." - Franklin Chang Díaz (Costa Rican astronaut and physicist)

MARKETS

March 28, End Of Day

TECH

Digital Government Index

The OECD Digital Government Index evaluates the efforts made by governments to establish the foundations necessary for a digital transformation of the public sector that is coherent and sustainable. The recent update highlights the significant role digital government played during the COVID-19 pandemic in ensuring the continuity of public sector operations and the provision of essential services.

Key findings reveal that while there is strong strategic approach towards digital government across countries, monitoring and implementation efforts require further strengthening. It underscores the importance of GovTech initiatives, the need to reduce the digital divide, and the potential of digital identity solutions - important issues in LatAm countries too:

1. Colombia's Strong Performance: Colombia stands out among LatAm countries, ranking 7th overall in the DGI. This indicates a comprehensive approach to ensuring robust foundations for digital government, with balanced performances across the six dimensions of the Index. Also Peru and Brazil rank over the OECD avarage.

2. Digital Identity in LATAM: The adoption of digital identity solutions for accessing public services is prevalent in most countries, including LatAm nations. However, further actions are needed to enable cross-sector use, suggesting LatAm countries are progressing but need to enhance governance arrangements to leverage digital identity benefits across various sectors fully.

3. Proactive Services to Reduce the Digital Divide: Most countries are committed to reducing the digital divide. Over 90% have implemented action plans aimed at this goal, with 80% putting enablers like legal frameworks, funding mechanisms, and public communications in place. This shows a strong commitment in LatAm to ensuring digital inclusivity.

4. GovTech Developments: The report suggests that countries are increasingly recognizing the importance of GovTech collaborations to enhance the digitalization of the public sector. This involves leveraging technology and innovation from the private sector to improve government services, efficiency, and transparency.

Fundraising picks of the week

Copper3D: Utilizing antimicrobial nanotechnology, Copper3D aims to eliminate microorganisms from devices manufactured through additive processes. In 2024, the company expanded into two new international markets, India and the US, and is developing antimicrobial and recyclable materials for NASA. Get to know the case here.

Bucksapp: Bucksapp offers an all-in-one integration service that includes data cleanup, data analytics, and personal finance management.  Bucksapp has a 6 LTV/CAC ratio and a remarkable 65% month-over-month growth in transactions processed. Get to know the case here.

Cuadds: Productivity tool designed with Lego-like elements, offering flexibility and power in managing tasks, projects, files, and messaging all-in-one unified platform. Get to know the case here.

Interested in Latin American startups? Subscribe here to get startups’ monthly progress updates in the verticals that interest you the most.

Dive deeper into other fundraising firms in LatAm here.

CURRENT AFFAIRS

Chile: Chile has opened more than two dozen lithium salt flats to private investment while maintaining state majority control over the key Atacama and Maricunga deposits, as part of President Gabriel Boric's plan to increase state involvement in the country's lithium industry. This move could potentially double Chile's lithium production in a decade. Currently, only SQM and U.S.-based Albemarle extract lithium in Chile, primarily from the Atacama salt flat, known for the world's highest lithium concentration in brine.

Brazil: Brazil and France have initiated a $1.1 billion program aimed at safeguarding the Amazon rainforest in Brazil and Guyana, announced during French President Emmanuel Macron's visit to Brazil. This collaboration seeks to halt Amazon deforestation by 2030, contributing to global warming mitigation efforts, and includes strategies like developing innovative financial tools and payments for environmental services. The program aligns with both nations' commitment to forest conservation and sustainable management, marked by a significant engagement with Indigenous communities and environmental leaders.

Honduras: Honduras and China have established a $275.99 million cooperation deal focused on improving educational infrastructure, marking their first such agreement since Honduras initiated diplomatic relations with China last year, following its decision to sever ties with Taiwan. This agreement precedes discussions on a free trade pact and projects in dams and power generation between the two nations.

FURTHER READING

Check our recently published insights here. Recent posts:

🌊 🇵🇾 Did you know that Paraguay is one of the only countries in the world that operates 100% on renewable energy?

We explored sustainability in Paraguay in our latest post.

  1. Economic Growth and Challenges: Paraguay has experienced robust economic growth over the past two decades, largely due to favorable trade conditions and solid macroeconomic policies. However, challenges like droughts and the COVID-19 pandemic have impacted this growth, necessitating a balance between economic development and sustainability. The country is working to overcome these challenges through strategic initiatives aimed at diversifying its economy and focusing on sustainable practices.
  2. Environmental Sustainability Efforts: The country relies on renewable energy, with the Itaipu Dam playing a significant role in its nearly 100% renewable electricity mix. Despite this advantage, Paraguay faces environmental challenges, including deforestation and pollution. Efforts to combat these issues include legislative frameworks for environmental protection, sustainable agriculture practices.
  3. Social and Economic Sustainability: Paraguay's approach to social sustainability focuses on reducing poverty, enhancing education, and improving health care. The country is also making strides in economic sustainability by focusing on investments in human capital, sustainable agriculture, and renewable energy. The issuance of its first sustainable bond and commitments to the UN's Sustainable Development Goals (SDGs) highlight Paraguay's efforts to finance projects with social and environmental benefits, aligning its financial sector with sustainable development goals.

🔍 Read more here.

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