The Development Bank of Latin America and the Caribbean (CAF) has approved USD 3.175 billion in new financing to advance sustainable development across Latin America and the Caribbean, reinforcing its role as one of the region’s most influential multilateral lenders.
The approvals were made during CAF’s Board of Directors meeting in Panama City and will support critical investments in energy, transportation, water, security, climate resilience, and inclusive economic growth. Together, the projects reflect a growing emphasis on pairing long-term development goals with immediate economic and social impact.
Targeted Investments Across the Region
The financing package spans five countries, each addressing distinct national priorities:
- Ecuador will receive USD 303 million to expand Quito’s metro system and strengthen the national electricity transmission network, supporting cleaner urban mobility and improved energy reliability.
- Panama secured USD 500 million through the Banco Nacional de Panamá to finance agribusiness and small and medium-sized enterprises. Half of the funds are earmarked for rural and women-led businesses, aiming to broaden access to capital and strengthen local economies.
- Uruguay was approved USD 980 million for a broad portfolio of investments focused on transportation infrastructure, climate resilience, community development, and strengthening subnational governance.
- Mexico will receive USD 300 million to modernize and expand electricity transmission and distribution infrastructure, with benefits expected to reach more than 44 million people nationwide.
- The Dominican Republic was allocated USD 566 million for projects spanning energy, water and sanitation, and citizen security, including efforts to improve water security in the Greater Santo Domingo area.
Expanding Regional Leadership
The approvals come alongside the re-election of Sergio Díaz-Granados as CAF’s Executive President for the 2026 to 2031 term. His renewed mandate signals continuity as the institution scales its financing capacity and expands its reach across the region.
CAF has also continued to grow its membership. Barbados has joined as a full member country, while Haiti and Saint Kitts and Nevis have begun the process of accession. The expansion strengthens CAF’s presence in the Caribbean and broadens access to flexible financing and technical cooperation, particularly for countries facing climate and development vulnerabilities.
A Signal of Momentum
At a moment when many developing regions face tightening global financial conditions, CAF’s USD 3.175 billion commitment sends a clear signal of momentum. The investments underscore the institution’s strategy of backing large-scale, bankable projects that deliver economic growth while addressing long-term sustainability challenges.
As Latin America and the Caribbean navigate energy transitions, urbanization pressures, and climate risks, CAF’s latest approvals highlight the growing role of regional development banks in shaping the future of inclusive and resilient growth.
RELATED STORIES:
Follow SDG News on LinkedIn
