Embracing the Digital Destiny of Latin America
Facebook has announced a significant five-year investment of 3.2 billion euros to expand digital infrastructure in Latin America. This investment aims to improve internet access and connectivity across the region, fostering sustainable, resilient, and equitable growth.
The tech giant is partnering with governments, entrepreneurs, and businesses to support this digital transformation. Facebook.org, the company's philanthropic arm, will provide $300 million over the next five years, including $50 million in cash grants and $250 million in donated ads, to nonprofits focused on sustainability and economic opportunity for women and young people.
Digital tools have proven crucial during challenging times, such as the pandemic. Fátima Álvarez, the co-founder of Mexican startup Someone Somewhere, used Facebook's digital tools to keep her clothing business running online. Meanwhile, Facebook for Startups campus in Brazil has supported over 450 startups since 2016, resulting in more than $9 billion in investments and the creation of 25,000 jobs.
One such startup is Tembici, a bike-sharing service in major Latin American cities, which utilizes Facebook's Cloud Regions in Santiago, Chile, and São Paulo, Brazil. These regions provide businesses with compute power and services to succeed in the digital economy.
Facebook's investment will focus on four key areas: digital infrastructure, digital skills, entrepreneurship, and inclusive, sustainable communities. The company's commitment includes a $1.2 billion investment to help the region thrive, with the Firmina subsea cable being a significant part of this investment. Scheduled to be completed in 2023, the Firmina cable will be the world's largest subsea cable, running from the U.S. to Argentina with additional landings in Brazil and Uruguay.
The digital transformation in Latin America could generate an annual economic impact of up to $1.37 trillion by 2030 in six of the region's largest economies, equivalent to 23% of these countries' combined GDPs. However, closing digital access gaps is vital to an inclusive recovery from the pandemic. Increased investment in digital tools can help create jobs, make economies more resilient, and sustainable.
Facebook also plans to increase its engineering footprint in Brazil, creating new roles with a focus on essential areas like privacy and security. This move aims to help create better products for the region and the world. Additionally, Facebook will provide Facebook Career Certificate scholarships to one million people in Latin America, helping them access well-paying jobs in high-growth fields.
The report from The Economist suggests increased investment and focus on AI technologies can unlock new opportunities in Latin America, particularly in sectors like health care, sustainable agriculture, financial services, and more. Facebook's commitment to Latin America also includes supporting organizations like Laboratoria in Peru, Asociación Colnodo in Colombia, and Instituto Rede Mulher Empreendedora in Brazil. A $2 million grant from Facebook.org will help Indigenous women-led businesses in Guatemala, El Salvador, and Honduras access microloans and digital skills training through Pro Mujer.
An example of a startup supported by Facebook for Startups is Oliver Pets, an Argentinian startup that expanded to other parts of Latin America through virtual veterinary care. The digital transformation in Latin America, driven by investments like Facebook's, promises to bring about significant economic and social changes, helping the region thrive in the digital age.
