The Development Bank of Latin America and the Caribbean (CAF) has announced plans to invest US$10 billion by 2031 to support projects aimed at strengthening regional integration across Latin America and the Caribbean.

The funding will target key areas including infrastructure, digital connectivity, trade, food security, energy, tourism, innovation, logistics and transportation, as the institution looks to improve links between countries and boost the region’s competitiveness.

CAF Executive President Sergio Díaz-Granados announced the investment following discussions at the International Forum on Regional Integration held in Cartagena, Colombia, in May. 

The forum brought together government officials, private sector representatives, academics and development partners to explore ways to deepen cooperation across the region.

Díaz-Granados said stronger regional integration is critical as countries face global challenges including trade disruptions, geopolitical tensions and economic uncertainty.

“Integration is the answer to protecting our strategic ecosystems, creating jobs, addressing informality, and defending the democratic values that underpin our coexistence, freedom, and future,” he said.

The investment will support initiatives designed to strengthen supply chains, expand trade opportunities, advance renewable energy efforts, improve food security and create new opportunities for businesses and communities.

During the event, 15 regional organisations signed the “Declaration on the Convergence of the Processes and Mechanisms of Integration of Latin America and the Caribbean,” which aims to improve coordination between existing regional integration efforts and reduce duplication.

The signatories included institutions such as the Economic Commission for Latin America and the Caribbean (ECLAC), the Amazon Cooperation Treaty Organization (OTCA), the Organisation of Ibero-American States (OEI), and the Latin American Energy Organization (OLADE).

CAF said its latest commitment builds on decades of support for regional projects. Over the past 30 years, the bank has approved 118 credit operations worth US$16.73 billion for regional integration initiatives.

The institution said its recent focus has expanded to areas such as physical connectivity, digital transformation, productive development, energy cooperation and environmental protection.

Díaz-Granados said the region must now move from planning to implementation.

“Regional integration has already achieved important progress, but it must now enter a more ambitious phase of implementation. Fewer barriers, more infrastructure. Fewer diagnoses, more projects,” Mr. Díaz-Granados said.