CAF closes 2021 with USD 13.2 billion in approvals for development in Latin America and the Caribbean
Throughout 2021, CAF approved a total of USD 13.2 billion to finance development initiatives in Latin American and Caribbean countries. The impact of these approvals translates, for example, into more than 2.5 million people having new or improved drinking water and/or sewerage connections; approximately 500 km of sewerage networks being built; and more than 1 million people benefiting from climate vulnerability reduction projects.
29% of approvals (USD 3,795 million) went to respond to the Covid-19 crisis, including addressing the health emergency and supporting fiscal consolidation, an aspect significantly affected by the health crisis. 26.9% of loans (USD 3,555 million) were earmarked for economic reactivation, especially in energy, transport and telecommunications infrastructure. In addition, through the productive and financial sector, USD 5,856 million were approved for public and private entities, as well as equity investments and shares in investment funds. In 2021, CAF Asset Management, the manager of private equity debt funds to finance infrastructure, strengthened its presence in the region with USD 1.5 billion in assets under management, and 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 capitalisation in the institution's history, for USD 7 billion, which will allow it to double its portfolio by 2030. The new resources will support economic reactivation in shareholder countries, and will contribute to consolidate the multilateral organisation as the green bank of Latin America and the Caribbean.
"CAF's performance in this complex year has been an important support for the countries in the region to overcome the socio-economic crisis generated by the pandemic. Looking ahead, we will continue to focus on consensus to address key issues in the region, such as climate change, digitalisation, increased productivity, integration, a greater role for the private sector and the reduction of inequalities," said Sergio Díaz-Granados, CAF's Executive President.
From the institutional perspective, in September 2021 Díaz-Granados assumed the presidency of CAF with the objective of turning the institution into the green bank and the reactivation of Latin America and the Caribbean, as well as to promote the development of sustainable and resilient infrastructure, support the private sector to increase formal employment, promote gender equity policies, inclusion and diversity, and promote the digitalisation of the countries in the region.
Regarding the environmental proposal, CAF presented at 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 commitments to environmental conservation, preservation of natural ecosystems and energy transition. During the summit, the agency announced that over the next five years it will mobilise USD 25 billion to promote green growth in the region. This means that its green portfolio will increase from 24% in 2020 to 40% in 2026.
