Peru Bets on Digital Solutions to Boost Productivity

With a view to fostering competitiveness of Peru’s agro-industrial and logistics chains, CAF reported progress on and launched a workshop for the “Industrial Internet Development in Peru” project in Lima, which is part of the bank’s Digital Agenda for Latin America and the Caribbean. Collaborators include ECLAC, ASIET and the Ibero-American Council for Competitiveness and Productivity, as well as Telefónica and an assortment of authorities, companies and entities interested in defining digital solutions.

The event was kicked off by Communications Vice MinisterVirginia Nakagawa, PRODUCE Innovation, Technology, Digitalization and Formalization general director Pamela Antonioli de Rutté and CAF—development bank of Latin America—representative in Peru Manuel Malaret .

During the gathering, participants highlighted the fact that, while large logistics and agribusiness companies have already started using technologies such as the Internet of Things and blockchain, small and medium-sized enterprises have focused primarily on the use of computers and smartphones. Therefore, the challenge of digitizing SME production requires linkage and traction with larger companies.

The toughest challenges facing exporting companies in the agribusiness chain include raising productivity and the quality of exported products, as well as water resource, market information and logistics process management, where digital solutions have shown to have a significant impact.

Accelerating network deployment in rural areas containing crop fields, as well as expanding networks along the land logistics corridor, are some of the priority public initiatives and mechanisms to improve connectivity, which is a key requirement for digital solutions. Another hurdle is funding, which will require the development of pilot projects, technological adoption plans, and implementation of technology packages, among other alternatives. Training is critical: companies acknowledge that their employees’ specialization levels are lower than is desirable, so they require technical training, supply and demand dynamization workshops and information on public initiatives.

In the coming weeks, the project will focus on the analysis and development of the roadmap’s main bullet points, aiming to identify connectivity initiatives that need to be prioritized in Ica’s agro-industrial and logistics chains, as well as public financing mechanisms and instruments, digital capacity building and knowledge dissemination alternatives, and regulation and procedures that have the greatest impact on productivity of both chains.