GovTech challenges in Colombia and Latin America: a promising road ahead

COVID-19 has forced companies to accelerate their digital transformation process and governments cannot be the exception. The pandemic offers an interesting opportunity for the latter to invest strategically in the development of platforms supported by new technologies to improve the quality of life of citizens. 

In June 2020, CAF and Oxford Insights published the first GovTech Index for Ibero-America. The results show two main conclusions: first, there is an unspoken need to massively and efficiently apply digital solutions based on data, in order to improve the quality of life of the inhabitants; second, there is a huge potential for start-ups to emerge as an option to develop this type of applications.

The GovTech Index measures the use of digital solutions in the public sector and the degree of maturity of ventures whose objective is to generate additional value for public management. The report evaluates three main elements: digital start-ups, government policies and procurement system. 

The measurement, which included Ibero-American territories, gives a score from 1 to 10. Spain and Portugal lead the index, with 6.6 and 6.2 points respectively. In the case of Latin America, Chile is the pioneer with 5.3 points, followed by Brazil and Mexico with 5.2, Uruguay with 5.1 and Colombia closes the top 5 with 5 points.

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Colombia needs more resources and governmental confidence to boost GovTech industry

Colombia, which ranked 7th among the 16 countries in the index, had a score of 5.05/10. These were the main conclusions: 

1. Digital start-up: 3.9 points

This item evaluated the digital, innovation and industry ecosystem. There were positive findings: Colombia has a robust environment for innovation and it is easy to start a business, which contributes to competitiveness. Likewise, the context of open data, solid technological infrastructure and high connectivity contribute to the industry.

Although the report highlights that GovTech has only recently emerged in Colombia, there is a high potential for growth thanks to the fact that we are a leading country in the Fintech industry in the region. 

2. Government policies: 5.4 points

The report highlights the commitment of the current government to develop the digital industry by supporting programs and entities such as the Innovation Lab. However, the great challenge is to provide more resources for public institutions to carry out strategies that enhance the industry.

The study also mentions that the Government included in its next Development Plan specific points to boost the sector, such as the intention to create a fund to stimulate GovTech growth.

Procurement system: 5.8

Although this was the item in which Colombia obtained the highest score, the report gives a negative report in terms of trust in public institutions. Although the opening of data has contributed to the fight against corruption, it continues to be a scourge that affects us. Regulation is sound, but it is not always enforced. Corruption undermines the trust start-ups need to see the government as a business ally. 

Government management and public-private partnerships will play a leading role in the development of technologies that bridge the gap between government and citizens. There is still a long way to go, however, companies such as nuvu have stepped forward to develop GovTech that facilitate and improve public management.