For the strengthening of Latvia's economic competitiveness, including technology development, production efficiency improvement, and innovations, entrepreneurs have access to a range of Latvian Recovery and Resilience Mechanism support programs with a total funding of 183.3 million euros, including support programs for business digitalization. These are implemented by the Development Finance Institution Altum (hereinafter – Altum) and the Latvian Investment and Development Agency (hereinafter – LIAA).
“To promote Latvia's economic growth and competitiveness, we undoubtedly need to also encourage business digitalization, investing in technological solutions and innovations, as well as making changes in production processes. Support for digital transformation of businesses and digitalization of processes, as well as the acquisition of digital services and necessary skills for company employees, is a valuable tool for enhancing competitiveness. We invite entrepreneurs to take advantage of this opportunity!” urges Minister of Economics Viktors Valainis.
Altum offers loans with capital discounts for business digitalization. Since February 22 of this year, when support for the digitalization program became available to entrepreneurs, companies have submitted 43 applications to Altum for a support amount of 24.5 million euros. So far, 17 projects have been approved for a total amount of 9.4 million euros, while about 20 projects are in various stages of evaluation.
Ilze Zandberga, ALTUM's digitalization program manager, states: “The support program for business digitalization offers an attractive financing solution – with a capital discount to write off up to 35% of the ALTUM loan principal from the project costs. This is the best opportunity for manufacturing companies to digitize processes and modernize solutions, thereby staying a step ahead of competitors. The program is utilized by companies from various sectors, including meat product manufacturer Forevers, furniture manufacturer GM Style, wood industry company LV Timber, and optics industry company Liko-R.”
Altum's approved projects represent industries such as woodworking, including furniture manufacturing, metalworking (metal door, metal structure manufacturing), medical instrument manufacturing, meat processing, specialized construction works. With Altum's loan support, companies mostly plan to purchase automated equipment, as well as intangible assets, such as software.
Meanwhile, LIAA offers grant-based support for business digitalization. Until November 22, companies have submitted 74 project applications for a total amount of 1.72 million euros. LIAA has concluded 17 contracts with companies for a total support amount of 288 thousand euros.
“The state support program for business digitalization is aimed at increasing efficiency to boost company competitiveness. In total, 37.5 million euros are available in this program until the end of 2026, which entrepreneurs can allocate for the implementation of various digital solutions, including export promotion and digital innovations,” emphasizes LIAA acting director Iveta Strupkāja.
LIAA's approved projects represent areas such as food, rubber products, cardboard packaging manufacturing, engineering systems, business park management, legal services, technical consultations in construction, dentistry, healthcare (hospitals), trade, and active recreation. Companies plan to use the digitalization program's support to attract funding for the robotization of production processes, development of licenses, software, 3D models, and other digital solutions, CRM (customer service), ERP (resource management systems for inventory tracking), e-commerce.
Additional information about the Recovery Fund support programs under the competence of the Ministry of Economics is published on the ministry's website.
