Peru's digitalization journey

Peru's digitalization journey

As 2025 starts and we step further into a digitalized world, are all countries equally prepared for this change?

Is Peru ready to face the challenges of the digital age over the next five to ten years?

While the country grapples with pressing foundational issues, we cannot afford to lose sight of the immense potential digital transformation holds. Digitalization is no longer a luxury; it’s a must to ensure Peru’s competitiveness and inclusion in the global economy.

The Presidency of the Council of Ministers Presidencia del Consejo de Ministros defines digital citizenship as the ability of individuals to leverage the internet for personal, professional, and social activities, while also exercising their rights and responsibilities digitally. However, Peru’s progress towards a digitally competent population still faces significant set backs. Despite the acceleration of digital adoption during the pandemic, much remains to be done to establish foundational digital skills across the country.

Access to the internet is a vital stepping stone for a country’s digitalization. According to the World Bank, 71% of Peruvians accessed the internet via a device in 2021. This growth is driven largely by the expansion of mobile technology, with mobile phone subscriptions reaching 128 per 100 people that year, according to the World Bank. However, fixed broadband subscriptions are different, only 9 per 100 people had access, highlighting the ongoing infrastructure gaps.

This divide between mobile and fixed broadband access underscores a critical challenge: while mobile connectivity is growing, it doesn’t provide the same stability or speed necessary for more complex digital applications. Closing this gap is essential for fostering deeper digital engagement.

The following image is a map of the fiber optic cable in Peru in 2019. Most of the infrastructure is located in the coastal region of the country. There is limited connectivity in the mountain range and the rainforest.

Source: Ospitel

Progress and persistent gaps

The public sector has shown progress in digital governance. According to the UN’s E-Government Survey 2022, Peru improved its e-government development index from 0.7083 (2020) to 0.7524 (2022), particularly excelling in digital services and human capital. Yet, significant infrastructure disparities persist, limiting equitable access to digital resources.

The National Household Survey (ENAHO) from 2020 revealed that only 55% of Peruvians aged six and older had used the internet in the past month (ENAHO). This statistic suggests Peru must increase access and develop targeted strategies to ensure all citizens can participate meaningfully in the digital economy.

Sectors embracing digital transformation

Digitalization has reshaped Peru’s labor market. Employers increasingly demand digital competencies like proficiency in office automation and cloud workspaces. Without these basic skills, many Peruvians face barriers to entry into competitive roles, particularly in larger organizations.

After the pandemic, many Peruvian organizations have turned to outsourcing positions, often beyond Latin America. This shift has heightened the demand for professionals with strong English proficiency, for Peruvians, mastering English is no longer just an advantage; it has become a critical skill to remain competitive.

For small businesses, digital tools like social media and e-commerce platforms have become vital. However, challenges like adapting to telework remain significant. During the pandemic, remote work surged, with 23 million people in Latin America teleworking by mid-2020. In Peru, this trend remains stable, supported by Law No. 31572, which regulates remote work.

The pandemic pushed Peru’s education sector into uncharted territory, rapidly adopting remote learning. Despite initial challenges, hybrid education models are now gaining traction. Private institutions are the first ones for this transition, with blended programs becoming increasingly popular.

The financial sector in Peru has embraced digital innovation. Mobile wallets like Yape and Plin changed the way transactions worked, reducing reliance on cash, and driving financial inclusion. The rise of Fintech platforms is another key development—Peru leads Latin America with the highest number of active Fintech companies, according to Banco Interamericano de Desarrollo (BID)

To unlock the full benefits of digitalization, Peru has to address its digital skills gap.

Neurometrics’ Digital Activity Index identifies specific population segments that actively use the internet, providing a foundation for targeted policymaking. By investing in digital education and infrastructure, Peru can create opportunities for all citizens to thrive in a digital society.

While progress has been made in digital governance and technology adoption, the country must prioritize addressing infrastructure gaps, promoting digital education, and adopting inclusive policies. A strong digital strategy can transform the economy and the lives of citizens, positioning Peru as a leader in the digital age.

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