Program to boost foreign direct investment and exports in sectors with high added value is expected to create 5,000 skilled jobs
The Inter-American Development Bank (IDB) approved a $10 million loan to help Uruguay develop its market for global export services. The program seeks to increase foreign direct investment in high value added sectors, boost exports, and generate more jobs for skilled workers.
The program will support the comprehensive development of a global services sector through coordinated actions to promote investment and exports as well as to create greater capabilities. This will be complemented by interventions aimed at optimizing the regulatory framework and improving the public sector’s ability to monitor and regulate activities in this area.
In addition, the program will prioritize support in four areas identified as having high development potential: logistics services, activities to serve the pharmaceutical industry, back office and processing services, and information technology support services.
The Program to Support Global Export Services includes trade promotion activities within and across sectors and measures to strengthen the capabilities of the Uruguay XXI Institute for Investment Promotion in the areas of business intelligence and post-investment services.
Similarly, capacity building for the global services industry will be promoted through implementation of a skills registry, the development of training programs, and specific actions to facilitate access to quality certifications. In addition, specific measures will be financed to optimize the regulatory framework and improve capabilities for applying existing regulatory regimes.
Among the main goals of the program are to generate a 67 percent increase in global services exports and a 55 percent increase in foreign direct investment in the sector. The program is estimated to generate 5,000 quality jobs.
The loan is for a term of 25 years, with 4-year grace period and a variable interest rate based on LIBOR. The Uruguayan government will contribute $3 million to the program.