CAF Closes 2021 with USD 13.2 Billion in Approvals for Latin America and Caribbean Development

Throughout 2021, CAF approved a total of USD 13.2 billion to fund development initiatives in Latin American and Caribbean countries. The impact of these approvals translates into e.g. more than 2.5 million people having new or improved drinking water and/or sewer connections; approximately 500 km of sewerage networks built; and more than 1 million people benefiting from climate vulnerability reduction projects.

A total of 29% of the approvals (USD 3.79 billion) were allocated to address the crisis caused by COVID-19, including the health emergency and support for fiscal consolidation, which was hit hard by the health crisis. Also, 26.9% of the loans (USD 3.55 billion) went to economic revival, especially in energy, transport and telecommunications infrastructures. Additionally, through the productive and financial sector, USD 5.85 billion was approved to public and private entities, as well as equity investments and participations in investment funds. In 2021, CAF Asset Management, which handles private debt equity funds to finance infrastructure, strengthened its presence in the region with USD 1.5 billion in assets managed. By 2026, it plans to be operating in 10 CAF member countries.

Also in 2021, CAF’s Board of Directors approved by consensus the largest yet capitalization in the institution’s history, for USD 7 billion, thus doubling its portfolio by 2030. The fresh funds will support the economic revival in shareholder countries, and will help consolidate the multilateral organization as the green bank of Latin America and the Caribbean.

“CAF’s performance in this complex year has been a major buttress for the countries of the region to overcome the socioeconomic crisis caused by the pandemic. Looking to the future, we will continue to advocate for consensus to address key issues in the region, such as climate change, digitalization, increased productivity, integration, the greater role of the private sector and the reduction of inequalities,” said CAF executive president Sergio Díaz-Granados.

From the institutional perspective, in September 2021, Díaz-Granados took office as executive president of CAF with the aim of turning the institution into the green and recovery bank of Latin America and the Caribbean, as well as promoting the development of sustainable and resilient infrastructures, underpinning the private sector to create formal jobs, promote policies on gender equity, inclusion and diversity, and foster the digitalization of the countries of the region.

As for the environmental proposal, CAF presented at the COP26 in Glasgow the main lines of action to become the green bank of Latin America and support the countries of the region in their environmental conservation, natural ecosystem preservation and energy transition commitments. During the summit, the organization announced that it will mobilize USD 25 billion over the next five years to promote green growth in the region. This will raise its green portfolio from 24% in 2020 to 40% by 2026.