On February 22, the first three support programmes of the Recovery Fund developed by the Ministry of Economics (MoE) for business digitisation were opened, within the framework of which it is planned to provide support to businesses in the amount of EUR 95.14 EUR.
Minister of Economics Ilze Indriksone:
For companies to become even more competitive, which is also the growth indicator of Latvia as a whole, it is necessary to promote digitisation of enterprises together by investing in technological solutions and innovations, as well as by making changes in manufacturing processes. Yes, it may be a financially intensive project, but expenditures should be seen in the context of future benefits – increasing productivity and financial results. The Ministry of Economics will support the digital transformation of entrepreneurship by promoting digitisation of various technological processes, as well as development of digital services and necessary abilities and skills for employees of the company”.
To promote the digital transformation of enterprises, the MoE will introduce five new support programmes of the Recovery Fund. Consequently, in the period up to 30 June 2026, it is planned to provide support to at least 7000 entrepreneurs, by investing EUR 139.4 million from the Recovery Fund in the digital transformation of entrepreneurship, as well as in the development of digital services and necessary abilities and skills in general.
Zane Petre, Head of the European Commission Representation in Latvia:
Latvia’s Recovery and Resilience Plan provides more than EUR 365 million or 21% of the total amount of funding for ensuring the digital transition. Reforms and investments should be designed to facilitate the digital transition, at individual, business and public level. Increasing the uptake of digital solutions in enterprises is necessary to promote the availability of high-quality workforce, improve competitiveness and resilience in crisis situations, as well as increase the level of innovation”.
Digital maturity test and development roadmap of European Digital Innovation Hubs
European Digital Innovation Hubs (EDIH) are an initiative of the European Commission under the Digital Europe programme, which aims to help both public and private sector organisations deploy the latest digital technologies, processes, products and services. The EDIH operate across the European Union and form a single network.
The total funding of the support programme “Support for the Establishment of Digital Innovation Hubs and Regional Contact Points” is EUR 10 million, within the framework of which the Latvian Information Technology Cluster and the Latvian Digital Accelerator will act as one-stop shops ensuring an in-depth evaluation of businesses, providing technical expertise, training, skills improvement to make the digital transformation happen.
Chairman of the Board of Latvian IT Cluster Jānis Čupriks:
As a large and powerful European initiative, the European Digital Innovation Hubs are also starting work in Latvia, helping Latvian companies and organisations to access and use in a targeted way digital technologies for their growth. The focus of EDIH coordinated by the Latvian IT Cluster will be support for improving and transforming internal processes of enterprises, allowing them to become more competitive, efficient and implement innovative technologies”.
Salvis Roga, Member of the Board of the Latvian Digital Accelerator:
The task of the Latvian Digital Accelerator as one of the European Digital Innovation Hubs in Latvia, is to support the creation of new digital products and services through the use of digitisation capabilities. And it is particularly important to ensure that these products and services are tested in a real environment. Thus, in cooperation with both commercial enterprises and various governmental and non-governmental institutions, the highest efficiency products and services would be jointly developed through acquisition of experience, human resources development activities and provision of financial support. This is not only a successful ecosystem for the digital transformation of Latvia, but also a clear path towards the growth of the Latvian national economy and the creation of an innovative digital economy”.
To apply for one of the digital transformation investments, the economic operator must first approach one of the EDIH of Latvia – the Latvian Information Technology Cluster or the Latvian Digital Accelerator – to perform the initial digital maturity test, assessing the situation of existing digital technologies and identifying areas where investments are necessary and further receive the digital development roadmap, which will already be an in-depth assessment of the activities necessary for the support beneficiary to promote digital transformation.
Once the project is completed, a second digital maturity test will be needed to assess digital growth. By 30 June 2026, EDIH will also provide entrepreneurs with consultations on digital transformation and mentoring, access to experimentation, piloting and testing activities prior to investments, as well as help entrepreneurs prepare project applications for receiving support from the Investment and Development Agency of Latvia (IDAL) and ALTUM. At the same time, EDIH will provide support in at least five regional contact points throughout Latvia. Additional information is available on the EDIH website: https://www.digitallatvia.lv/ and www.dih.lv.
After evaluating the recommendations included in the digital development roadmap for improvement of the company’s digital capabilities, the company will take a decision on the measures to be implemented and apply for IDAL support for digitisation of processes or ALTUM loans with capital discount for digitisation of companies.
Support of the Investment and Development Agency of Latvia for digitisation of processes
The total financing of the support programme “Support for Digitisation of Processes in Commercial Activities” implemented by the IDAL is EUR 40.14 million and at least 200 entrepreneurs will receive support within its framework until 30 June 2026. At IDAL, entrepreneurs will have access to support for the introduction of new software and equipment in their companies, ensuring digitalisation of internal processes in commercial activities and increasing productivity. At IDAL merchants will be able to receive support for improving administrative, personnel management, sales, resource management, data management, transport and logistics, production and quality control, operational management (business management, business analytics, big data analytics, etc.), strategic management processes and other improvements related to information and communication technology products, technologies, security or processes. Additional information at the IDAL platform for business development.
Digitisation of businesses is largely related to increasing efficiency. According to expert estimates, digitisation can improve business efficiency by 25%. Automated processes can help do work faster and more efficiently, which means you achieve more productivity and competitiveness. It is important that support is also available to small enterprises, for whom it is an opportunity to take faster steps in the direction of development,” Director of IDAL Kaspars Rožkalns says.
The IDAL will support the digitisation of processes to be paid to the final beneficiary:
- micro and small merchants will have access to support of up to EUR 5000,
- SMEs, large merchants, NGOs, state-owned enterprises will have access to support of up to EUR 100,000.
ALTUM loan
Member of the Board of ALTUM Jēkabs Krieviņš:
The new support programme for the digitisation of enterprises offers an attractive financing – to repay the principal amount of the ALTUM loan up to 35% of the project costs with a capital discount. This will be a great opportunity for businesses to digitise processes and modernise solutions and thus be one step ahead of competitors”.
Support will be available to undertakings in the form of a loan with the possibility to repay the principal amount by fulfilling the conditions of the digital development roadmap. The minimum amount of the ALTUM loan is EUR 100 thousand, the maximum amount – EUR 7 million. Loan maturity – up to 10 years. The capital discount available for the repayment of the principal amount of the loan will be up to 35% of the total costs of the project (observing regional intensity conditions of the state support), but not more than EUR 1 million if the conditions of the roadmap are met. Additional information on the ALTUM website.
As we informed before, this year we are planning to develop two more support programmes to promote digitisation:
- the objective of the programme “Development of Digital Skills of Enterprises” will be to improve digital skills of micro, small, medium-sized and large Latvian enterprises, including skills that contribute to export promotion, high-level digital management skills at the level of enterprise management and skills for the use of digital technologies in different business processes;
- The objective of the programme “Support for Introducing New Products and Services in Business” will be to provide grants for the development of new digital products, technologies and services to increase private research and development spending through targeted public investment.