The International Finance Corporation (IFC) and Microsoft signed a strategic agreement to identify and enhance investment opportunities in digital transformation across Latin America and the Caribbean.

This strategic partnership between IFC and Microsoft aims to drive sustainable development and technological innovation in sectors like mining, energy, smart cities, transportation, and public services throughout the region.

As per the agreement, IFC will provide its clients with advisory services and financing to enable digital transformation, while Microsoft will contribute its technological solutions. The focus will be on using emerging technologies such as artificial intelligence (AI), to transform digital infrastructure, improve operational efficiency, and boost the region’s productivity.

“We are convinced that the adoption and integration of technologies like artificial intelligence and cloud computing are essential to stimulate sustainable growth in Latin America and the Caribbean. Through this collaboration with IFC, we will work with key sectors for the development of the region, driving the opportunities that these technologies present to Latin American markets,” Tito Arciniega, president of Microsoft Latin America, stated.

Global spending on digital transformation is expected to reach nearly US$4 trillion by 2027, and Latin America is positioned to be a key part of this global push toward digital transformation.

As such, Arciniega noted, “Our goal is to empower every company to reach its full potential through technology, creating a positive impact on their activities and the communities in which they operate. We consider this collaboration an important step in that direction.”

In addition to optimising operations, adopting digital technologies plays a critical role in promoting environmental sustainability. Innovative solutions, such as smart energy systems and resource management based on data analytics, can significantly reduce companies’ carbon footprint, and thus contribute to achieving international sustainability goals and supporting companies in meeting their Environmental, Social, and Governance (ESG) targets.

“One of IFC’s priorities in the region is to increase private sector productivity. With this collaboration we will drive innovation and the adoption of new technologies, key factors in accelerating productivity and inclusion,” said Alfonso García Mora, IFC’s Vice President for Europe, Latin America and the Caribbean.

“This agreement will allow us to redouble our efforts to support our clients in their digital transformation and continue driving sustainable development in the region,” he added.

This initiative aligns with IFC’s digital strategy, which seeks to stay at the forefront of technological developments in an increasingly tech-driven world.