ADFD And CAF Forge Cooperation Agreement To Enhance Sustainable Development In Latin America

The Abu Dhabi Fund for Development (ADFD) and CAF – Development Bank of Latin America and the Caribbean have entered into a significant agreement. This partnership aims to boost sustainable economic growth and lessen inequalities in Latin America. The agreement was formalised during the Annual Meetings of the International Monetary Fund and the World Bank Group, held in Washington.

The collaboration framework includes co-financing projects, joint investments, and information sharing. These efforts are designed to promote synergy in identifying and preparing investment opportunities. Both organisations aim to enhance their capacity to support infrastructure, social development, and economic growth projects in CAF's shareholder countries.

Mohamed Saif Al Suwaidi, ADFD Director-General, highlighted the alignment of this partnership with both organisations' missions. He stated, "We are committed to advancing SDGs through climate action, infrastructure development, and social well-being." ADFD is focused on fostering innovation and investment in key sectors that drive economic growth and empower communities.

Sergio Díaz-Granados, Executive President of CAF, expressed optimism about the collaboration. "This Agreement with ADFD marks a significant step in our mission to drive sustainable development in Latin America," he said. By combining expertise and resources, both entities aim to amplify their impact and create more opportunities for growth in the region.

The agreement highlights both organisations' dedication to fostering economic development and improving living standards in developing countries. CAF brings its extensive experience in Latin America as a multilateral financial institution. Meanwhile, ADFD contributes its expertise in providing concessionary financial resources globally.

Key areas of cooperation include co-financing or parallel financing of projects and joint initiatives. The partnership also involves collaborative project development and assessment for potential financing. This approach fosters synergy in identifying investment opportunities that can lead to sustainable outcomes.

Flexible Cooperation Framework

The exchange of information on projects is crucial for this partnership. It allows both entities to benefit from shared knowledge and experience. The agreement also leaves room for exploring other mutually agreed forms of cooperation, providing flexibility for future needs.

This collaboration is expected to enhance the capacity of both institutions significantly. It will support critical infrastructure projects while promoting social development and economic growth across CAF's shareholder countries.

This strategic alliance between ADFD and CAF underscores their commitment to sustainable development goals. By working together, they aim to transform lives through innovative solutions that address regional challenges effectively.

With inputs from WAM