World Bank Approves $55 Million Credit for Peru to Modernize Social Registry

In Peru, poverty and economic vulnerability have increasingly shifted to urban areas, with over 70% of the 10 million Peruvians living in poverty now residing in cities.

The World Bank's Board of Executive Directors has approved a $55 million credit to Peru aimed at modernizing the National Social Registry (SINAFO), enhancing its social household registry system. This initiative is designed to create a more inclusive, dynamic, and interoperable social policy information system, which will support both regular programs and emergency responses.

The credit will fund the development of a cutting-edge information system incorporating digital tools such as data digitization, remote service access, artificial intelligence for data analysis, and real-time integration with state databases.

The project's goal is to improve access to social programs by bolstering the capacity of local registration units managed by local governments and strengthening the Ministry of Social Inclusion and Development (MIDIS) in leading and managing SINAFO. It aims to foster a more transparent and efficient allocation of social spending.

In Peru, poverty and economic vulnerability have increasingly shifted to urban areas, with over 70% of the 10 million Peruvians living in poverty now residing in cities. Economic slowdowns, recurring shocks, and climate variability threaten to further impoverish the most vulnerable households.

A modern, high-quality social registry will enable better identification of those in need of social protection services, including rural households, newly impoverished individuals, vulnerable urban groups, female-headed households, households with disabled members, and those affected by climate change.

"Social registries are crucial for social protection systems, playing a key role in organizing and connecting national and local services. Our work over the past three decades has helped many countries establish and enhance their registries," said Issam Abousleiman, World Bank Country Director for Bolivia, Chile, Ecuador, and Peru. "A comprehensive social registry improves the impact of social programs on poverty reduction, enhances public spending efficiency, and strengthens the State's ability to respond to shocks."

This initiative represents the World Bank's support for Peru's government by financing the digitization and modernization of the social household registry, aiming to close coverage gaps and provide reliable, high-quality information for 9.1 million households.