Millicom International Cellular S.A. has announced that it will invest 250 million dollars in Panama, for a major expansion plan, that includes strengthening, upgrading, and expanding its mobile and fixed internet services, by building new infrastructure in underdeveloped areas such as Bocas del Toro, Darién, Coclé, and Ngäbe Buglé, this plan will be in tune with the government's strategy to close the digital divide, and bringing internet services to thousands of residents who are as of now left out of the digital world, the government hopes that this move will stimulate the local economy and have a big social impact for it residents. Furthermore, Millicom has announced that it plans to create a ¨Fintech Hub¨ making Panama a hub for digital financial services in the region.

The news comes after a meeting between president Laurentino Cortizo Cohen and Millicom CEO Mauricio Ramos, where the president said that Millicom must be a Facilitator for Panama’s digitization and that it is the government’s responsibility to be a facilitator for investment.

Millicom’s is in the process of expanding its business all across Central and South America, however, Panama it’s one of its biggest bets, the 250-million-dollar investment from 2021-2022 is almost double the 135 million in investments announced for Bolivia, Honduras, and Paraguay.

The investment will go mostly to a major modernization of its infrastructure, to be more competitive and to build brand new infrastructure in underdeveloped areas, this investment plan will impact around 800,000 residents of which 200,000 do not have internet coverage, the government hopes that this will have a huge economic and social impact for its residents and that it will bring more people into the digital world.

Millicom also announced that it plans to build a ¨Fintech¨ hub this stands for financial technology, as its name suggests it refers to any kind of technology in financial services, Millicom wants to build a hub for its Fintech operations and has chosen Panama to be its financial center, taking advantage of Panama’s solid international banking system and its privileged location, it is though this move that Millicom hopes to strengthen its financial mobile services for the entire region.

Millicom's mobile banking platform, which operates as Tigo Money in Latin America, has reportedly doubled its transactions on the digital platform in the last year, this is because many people are now seeing the benefits of online banking and are getting more comfortable with digital transactions, because of this the market keep growing exponentially each year, Millicom is taking advantage of this situation and investing heavily in Fintech, and by choosing Panama as its financial hub it will be easier for Millicom to implement its financial business plan for the region.

"As of today, we have 100 people working in Panama and serving the region (...) we will expand our operation to 300 people to offer Fintech services to the region as part of the Digital Hub and Business and Services Hub strategy," said Ramos.

This investment plan will be highly beneficial for Panama because it will further develop and strengthen its financial system, attract more investment, and will also have a direct impact on the economy by creating more jobs for the nation.