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World Bank approves financing of US$30 million towards SVG’s development of a Digital Economy

World Bank approves financing of US$30 million towards SVG’s  development of a Digital Economy
Tahseen Sayed, World Bank Country Director for the Caribbean

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The World Bank Board of Executive Directors approved on June 22, 2020, financing of US$30 million for St Vincent and the Grenadines as part of a regional US$94 million Caribbean Digital Transformation Project for four Eastern Caribbean countries.

The project, which seeks to build an inclusive digital economy has also approved US$28 million for Dominica, US$8 million for Grenada, US$20 million for Saint Lucia and US$8 million for the Organisation of Eastern Caribbean States (OECS) Commission.

This is the first World Bank-financed project to support the development of the digital economy in the Caribbean. It aims to increase access to digital services, technologies, and skills by governments, businesses, and individuals.

“The COVID-19 crisis has highlighted the essential role of digital technology in keeping people, businesses, governments, and countries connected. It enabled virtual continuity of services and facilitated contactless transactions,” said Tahseen Sayed, World Bank Country Director for the Caribbean. “The digital economy offers a unique opportunity for the Eastern Caribbean countries to become digital leaders. Wider and more rapid adoption of digital technologies can support countries during the COVID-19 recovery phase and help build resilience, create jobs and boost future growth.”

The project aims to increase Internet penetration and access to digital financial services and public services. It will support reforms and regional harmonization of the legal and regulatory environment to promote investment in digital infrastructure. It will support activities to make telecommunications and financial services more affordable, while addressing risks related to cybersecurity and data protection. The project will also support public sector modernization and delivery of citizen-centric, digital public services. Support will be provided to individuals and businesses for skills and entrepreneurship development.

Financing for the project comes from the International Development Association (IDA). The OECS Commission will receive a grant, and the four Eastern Caribbean islands will receive interest-free financing with a maturity of 40 years, including a grace period of 10 years.

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