CAF and Tabasco Government present trade facilitation program with territorial integration and social-productive development

In an effort to boost Tabasco’s economic and social development and competitiveness, CAF—development bank of Latin America—, together with the state government, through the Secretariat for Economic Development and Competitiveness, presented the Tabasco Comprehensive Development Program: Results and Lessons.

The Tabasco Comprehensive Program is the first CAF comprehensive development program in south-southeast Mexico. The process provides an opportunity to create a comprehensive vision of development, integrating the three levels of government with the Ministry of Economy at the federal level, the Government of Tabasco, and municipal authorities, as well as the private sector and academia. The purpose of the Program is to facilitate and boost trade to and from Central America and the United States through territorial integration and Tabasco’s social-productive development.

In this sense, the Program is set to underpin projects and concrete actions through a Logistics Roadmap, identifying priority development hubs, structural projects and enabling actions. These include, first, a diagnosis of the needs and a preliminary project portfolio for the cities of Villahermosa, Tenosique and Frontera; second, a feasibility study for a TIF tracking system in the city of Tenosique and; technical support for a feasibility study to develop an Irrigation District on the banks of the Usumacinta River.

CAF has not only provided financing through non-reimbursable technical assistance funds, but has also contributed with know-how based on its 50-year experience in other countries in the region. The Tabasco experience could well serve as an example for other states in south-southeast Mexico and other nations.

CAF has described some of the expected benefits, including: increased integration of Mexico and Central America through investments and trade, with a view to enhancing a market of more than 40 million people; boosting Tabasco’s productivity to shorten territorial gaps and leverage its agro-industrial and livestock potential; a greater insertion of the south-southeast in the markets of the rest of Mexico; job creation to help support the efforts of social inclusion programs; and helping design a sustainable response to migration from other regions

As part of the event, CAF presented the details of the Logistics Roadmap, which will serve as an instrument that integrates the actions prioritized by the Government of Tabasco in terms of logistics infrastructure and economic development, to outline a roadmap for the short, medium and long term towards economic diversification, facilitating productive investment in the private sector, laying the ground for leveraging its strategic location to access regional and international markets and enhancing its natural resources. This will be articulated through four priority development programs: Logistical inclusion of territories with a productive potential; Tabasco Logistics Hub of Southeastern Mexico; the Prosperous Cities Program; and the Promotion of Foreign Trade Logistics and Articulation with Central America.

René Orellana Halkyer, regional manager for Mexico and Central America at CAF—development bank of Latin America—, stressed that Tabasco plays a strong leadership role in attracting investments and building its own capacities. He also ratified CAF’s commitment to prioritize initiatives to support projects for the economic development of the south-southeast region of the nation.

Tabasco governor Carlos Manuel Merino Campos underscored that the state intends to create the conditions to implement the projects prioritized by the studies that are already under the purview of state administration. Furthermore, the Secretary for Economic Development and Competitiveness, José Friedrich García Mallitz, recalled that the studies conducted by CAF are the result of a partnership that began in 2019, with the purpose of establishing mechanisms for technical cooperation and technology transfer, and building a development path with a vision for the year 2035. Lastly, Antonio Silveira commented on CAF’s role in supporting regional integration as a fundamental pillar to boost productivity in Latin America, and the importance for the development of the state of Tabasco of having a clear vision to enhance its integration with Central America and other markets.

With joint initiatives with local authorities and the federal government, CAF seeks to promote and strengthen private investment, the mobilization of financial partners for development and public-private partnership modes, and identify innovative mechanisms to channel funding to states and municipalities with a view to enhancing local productive public investment.