World Bank approves $55 million credit for modernization of Peru's National Social Registry

World Bank approves $55 million credit for modernization of Peru's National Social Registry
Banking & Financial Services
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Ajay Banga 14th President of the World Bank Group | https://encrypted-tbn1.gstatic.com

The World Bank’s Board of Executive Directors has approved a credit for Peru to modernize its National Social Registry (SINAFO), focusing on the social household registry. The project aims to create an integrated social policy information system that is inclusive, dynamic, and interoperable, suitable for both regular programs and emergency responses.

The US$55 million credit will fund the development of an advanced information system incorporating digital tools such as data collection digitization, remote service access, artificial intelligence for data analysis, and real-time interconnection with state databases.

This initiative seeks to enhance access to social programs by improving local registration units managed by local governments and strengthening the Ministry of Social Inclusion and Development's (MIDIS) capacity to lead SINAFO. It also aims to ensure a more transparent and efficient allocation of social spending.

In recent decades, poverty and economic vulnerability have increasingly affected urban areas in Peru. Currently, over 70 percent of the 10 million Peruvians living in poverty reside in urban regions. Economic slowdowns, recurring shocks, and climate variability pose further risks to the incomes of the poorest households nationwide.

A modernized social registry with extensive coverage will help identify those most in need of social protection services: rural households, newly impoverished urban groups, female-headed households, households with persons with disabilities, and individuals impacted by climate change.

"Social registries are the backbone of social protection systems. They play a critical role in the program implementation chain and help organize and connect national and local service provision. We have worked for over three decades with many countries in the region to help them establish and consolidate their registries," said Issam Abousleiman, World Bank Country Director for Bolivia, Chile, Ecuador, and Peru. "A comprehensive social registry improves the poverty reduction impacts of social programs, enhances the efficiency of public spending on social protection, and boosts the State’s capacity to respond to shocks,” he concluded.

Through this project, the World Bank supports Peru's government by financing efforts to digitize and modernize its social household registry. This endeavor aims to close coverage gaps and provide 9.1 million households with high-quality information promptly.

For more information on the World Bank’s activities in Peru:

Visit: https://www.worldbank.org/en/country/peru

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