The Inter-American Development Bank (IDB) approved a $50 million loan to promote sustainable productive development and exports in the province of Salta, Argentina.
The program, approved by the IDB's Board of Executive Directors, seeks to improve the competitiveness and internationalization of companies in the lithium mining, agrifood, tourism, and knowledge economy sectors through investments in infrastructure, training, and bolstering Salta’s export promotion and investment attraction strategies.
In addition to the people who will receive training, more than 100 local companies will access a range of resources, from shared services to obtaining certifications and international standards for export, with emphasis on climate change and environmental sustainability. Some companies will be incubated.
“This program is a proactive response from the Salta province government to the needs of the productive sector in four sectors with great export potential and investment attraction. It is an operation that puts into practice the experience acquired in the design and execution of public investment programs that effectively respond to the needs of the private sector,” said Francisco Estrázulas, senior specialist in the IDB's Integration and Trade Sector and team leader of the program.
The program will include the financing of a technology hub, which will focus on providing technical assistance to local companies in foreign trade, attracting investments and developing talent.
The program also aims to increase the local economic impact of lithium mining. It will finance the construction of the San Antonio de los Cobres Training Center, which will seek to strengthen the capacities of local companies for their integration into the lithium supply chains in the area. It will also train individuals in the province with the skills sought by these mining companies and their suppliers.
Additionally, the loan will support the development of a traceability pilot in grain chains to comply with the requirements of the European Union for no deforestation, thus facilitating access to that market for Salta exporters.
The $50 million IDB loan has a six-year execution period, a 23.5-year repayment term, a seven-year grace period, and an interest rate based on SOFR.
About the IDB
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 projects and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region. Take our virtual tour.
Cavelier,Andres
Planes,Maria Soledad
Beyond Borders
This IDB blog shares reflections on the role of trade, investment, cooperation, and regional integration for development in Latin America and the Caribbean.
Integration and Trade at the IDB
Driving growth through regional and international trade