CAF: 50 Years promoting sustainable development and regional integration in Latin America
The development bank strengthens its partnerships with businesses and governments across Asia
Since beginning activities in 1970, CAF has been a relevant development actor, consolidating our position as the main source of multilateral financing for energy and infrastructure in Latin America and growing from 5 to 19 member countries (17 members from Latin America and the Caribbean, and 2 extra-regional members – Portugal and Spain).
CAF supports sustainable development and regional integration within Latin America by financing economic and social infrastructure projects, encouraging foreign investment and capital market development, promoting the expansion of regional trade and exports and supporting the development of small and medium-sized enterprises in order to make national economies more diversified, competitive and responsive to social needs.
Bringing together extra-regional partners for the development of Latin America
Extra-regional shareholders, such as Spain and Portugal, enter a win-win relationship with CAF. They can benefit from our credit operations and help their businesses engage in infrastructure projects in Latin America, while strengthening CAF’s institutional capitalization strategy and contributing to the transfer of knowledge and skills in key sectors for development: private-public partnerships, water and sanitation, transport, logistics and renewable energies, among others.
In a similar manner, CAF also seeks to become a strategic ally in promoting a stronger and more balanced relationship between Latin America and Asia, which has become a focus of the region’s economic expansion. We are creating new partnerships designed to build bridges that promote mutual understanding, foster trade and investment, and catalyze the transfer of knowledge and technologies. Over the past ten years, we have set a record in Latin American bond emissions in Asian capital markets, amounting to $1.9 billion.
CAF and China have built an effective partnership to support the exchange of best practices as well as trade and investment in key sectors for development. Over the past decade, the total amount awarded to Chinese companies in public biddings of projects financed by CAF was $1.2 billion, mainly in the energy and transport sectors.
Japan is CAF’s oldest partner in Asia, with almost 40 years co-financing trade and development projects in Latin America. Under the framework of its external relations and institutional funding strategy, CAF has established close ties with Japan, particularly with the Japan Bank for International Cooperation (JBIC), obtaining credit lines for more than $600 for green projects.
CAF and the Republic of Korea have also strengthened cooperation in recent years, in order to foster investment in areas such as urban development, infrastructure and technical assistance.
As we celebrate our 50th anniversary, we stand ready to partner ever more closely with Asian governments and businesses as a trusted driver of Latin American development.