The Multilateral Investment Fund announced today it will launch a competition for up to $5 million in grants to nonprofit organizations that design pilot programs to benefit small- and medium-sized companies in Latin America and the Caribbean through the use of information and communication technology.
The MIF will select about 15 pilot projects that will in turn benefit many more small and medium-sized enterprises (SMEs) in the region.
It is expected that, once the results and best practices of the pilot projects are disseminated, thousands of SMEs more will benefit by adopting new technology solutions or services to increase their levels of competitiveness.
Among institutions expected to submit proposals are those offering SME business development services solutions for the development of information and communications technology (ICT), trade associations, universities, chambers of commerce and research centers in Latin America and the Caribbean.
The MIF will make matching grants to finance up to 60 percent of each project, contributing between a minimum of $75,000 and a maximum of $500,000 for a single project.
Among the areas in which the SMEs will benefit are value chain integration, workplace productivity and increased market penetration. Possible technological solutions in the proposed pilot projects are expected to include e-commerce and e-business, e-productivity applications, knowledge management and distribution systems, and mobile applications.
Knowledge-based industries now constitute more than 50 percent of the gross domestic product of developed countries, leaving the developing countries of Latin America and the Caribbean at a disadvantage in terms of productivity and growth.
ICT services and solutions improve the efficiency of a firm’s value chain by providing better and faster communications among trading partners, integrating transactions with logistics functions, reducing intermediation costs, facilitating the search for new markets, and allowing better pricing policies. ICT technologies are also important in banking, accounting, post-sale customer service, and the provision of rapid and strategic information.
The Multilateral Investment Fund, an independent fund administered by the Inter-American Development Bank, is dedicated to promoting private sector development in Latin America and the Caribbean through grants and investments.