CAF and the Government of Chile announce work strategy through 2026

April 08, 2024

Chile and CAF will collaborate on regional support initiatives, environmental protection, energy transition and the establishment of the country as a digital hub for South America, enhancing Latin American integration.

CAF and the Government of Chile announce work strategy through 2026

In a ceremony held at the La Moneda Palace, the President of the Republic, Gabriel Boric Font, along with the Executive President of CAF - development bank of Latin America and the Caribbean-, Sergio Díaz-Granados, presented the multilateral organization's strategy for Chile, which includes a proposal for technical and financial support in investment projects in both the public and private sectors aimed at supporting development projects with a high impact for the country.

The event was attended by the Minister of Finance, Mario Marcel; the Minister of Economy, Promotion, and Tourism, Nicolás Grau; the Minister of Social Development and Family, Javiera Toro; the Minister of Energy, Diego Pardow; the Minister of Science, Technology, Knowledge and Innovation, Aisén Etcheverry; and the Undersecretary of Foreign Affairs, Gloria de la Fuente.

The announcement of this strategy takes place on the occasion of the first anniversary of Chile's reintegration as a full member of CAF, an institution that has worked in Latin America and the Caribbean for over 54 years, where Chile stands out as one of the founding countries.

At the ceremony, the President of the Republic, Gabriel Boric Font, highlighted that in the joint work between CAF and Chile “we are recovering a valuable experience of Latin American integration,” emphasizing the incorporation of concrete measures and supports that benefit the citizens of Latin American countries.

Furthermore, the President pointed out that the will of the Government of Chile “is to continue deepening the relationship with CAF in the coming years and to contribute to the consolidation of this institution that not only preserves and increases its assets but also involves and commits directly with Latin American countries to improve the quality of life of its inhabitants. Chile and all of Latin America need a bank committed to sustainable development, integration, and the improvement of the quality of life in our region. In this way, we demonstrate that it is possible to move from rhetoric to action, and in this line, we are working as a Government together with CAF.”

For his part, Sergio Díaz-Granados, Executive President of CAF, stressed the importance of this milestone which projects a line of development for Chile until 2026. “The programmatic and collaborative work of CAF in Chile has focused on contributing to a sustainable and balanced development agenda. To this end, building on the premises of the Government, we have generated spaces for exchange and dialogue with multiple sectors and actors that have allowed us to identify opportunities to contribute in a space focused on levers that enable addressing the country's main development challenges, working both with the public and private sectors in favor of identified priorities. Chile is synonymous with strong institutions, vibrant democracy, experience, and prestige. We admire its achievements, share its values, and want to continue accompanying its development.”

During the ceremony, the CAF 2023-2026 Country Strategy for Chile was officially presented, which aims to support the Government of Chile's efforts to ensure the well-being and development of everyone. This document includes four fundamental strategic axes:

  1. Strengthened Regions for Equitable Development: Contribute to the decentralization process and productive transformation of Chile's 16 regions, promoting inclusive and sustainable development across territories.
  2. Green Transition for a Sustainable Future: Support the achievement of the country's environmental and climate goals through institutional strengthening and the implementation of effective climate action and biodiversity initiatives in various economic sectors and strategic ecosystems.
  3. Sustainable Energy Transition: Contribute to Chile’s efforts in decarbonizing its energy matrix by 2050 and developing the potential of green hydrogen as a clean and exportable energy source.
  4. Digitalization and Connectivity for the 21st Century: Contribute to closing the digital access and usage gaps, through improvements in connectivity and the expansion of public service digitalization across the country, and positioning Chile as a digital hub for South America.

In 2023, the first year of CAF's operations in Chile after its reintegration as a full member, 11 credit operations totaling 920 million dollars were carried out, 160 million for public sector initiatives, and 760 million were allocated to 9 private sector projects. Additionally, 6 million dollars in technical assistance resources were approved, aimed at priority measures such as closing digital gaps, strengthening regional governments, and advancing the regulation of the Law for Nature, among others.

CAF's work plan in Chile for 2024 includes support for both the public and private sectors, with over 1.4 billion dollars in financing available, mostly to bolster private projects that contribute to the growth agenda promoted by the Government of Chile. In addition, it plans to continue the technical assistance agenda implemented in 2023.