JICA signed an investment agreement for up to $1.5 billion with IDB and IDB Invest to support private sector development and achieve SDGs in Latin America and the Caribbean.

Target Information

The Japan International Cooperation Agency (JICA) recently signed an investment agreement with the Inter-American Development Bank (IDB) and IDB Invest regarding the "Trust Fund for the Development of the Private Sector in Latin America and the Caribbean" on February 18 in Yokohama. This trust fund is designed to support private sector development initiatives in the Latin American and Caribbean region.

The Latin American and Caribbean region, despite having a relatively high average income level among developing regions, continues to grapple with significant social challenges, including income, regional, and gender disparities, as well as vulnerabilities to climate change. Among the 169 targets outlined in the Sustainable Development Goals (SDGs), only 30 are deemed achievable in this region by 2030, indicating a substantial funding gap, estimated at $650 billion annually, necessary for the fulfillment of these goals. With public spending constrained by fiscal difficulties across various countries, resolving the funding gap through private investment has become crucial.

Industry Overview

The establishment of the Trust Fund, known as TADAC, comes in response to these pressing needs and will be managed by IDB Invest, the primary entity responsible for private financing within the IDB Group. TADAC will provide complementary financing to IDB Invest’s loans that support private s