CAF Country Strategy 2023-2026 for Chile: A comprehensive drive towards sustainable development

CAF’s 2023-2026 Country Strategy for Chile, which seeks to contribute to the work of the Government of Chile to advance construction and guarantee the well-being and development of all. This document has four fundamental strategic axes:

1. Strengthened regions for equitable development

The first axis of the strategy focuses on contributing to the process of decentralization and productive transformation of the 16 regions of Chile. The objective is to promote inclusive and sustainable development in all territories, seeking equity in economic and social growth throughout the country.

2. Green transition for a sustainable future

The second axis focuses on supporting the fulfillment of Chile’s environmental and climate objectives. This will be achieved through institutional strengthening and the implementation of effective climate action and biodiversity conservation actions in different economic sectors and strategic ecosystems.

3. Sustainable energy transition

The strategy also includes contributions to Chile’s efforts to decarbonize its energy matrix by 2050. It seeks to develop the potential of green hydrogen as a source of clean and exportable energy, thus promoting a more sustainable energy transition that is less dependent on fossil fuels.

4. Digitalization and connectivity for the 21st century

The last axis focuses on closing digital gaps in access and use throughout the country. This will be achieved through improvements in connectivity and the expansion of the digitalization of public services. In addition, it seeks to position Chile as a digital hub in South America, thus promoting innovation and technological development.

Advances and projections for CAF’s work in Chile

During the first year of CAF’s work in Chile, important financial and technical assistance operations were carried out to promote these objectives.

In 2023, 11 credit operations were carried out for a total of 920 million dollars, intended for both the public and private sectors. These funds were used for projects ranging from closing digital divides to strengthening regional governments and promoting clean energy.

By 2024, further momentum is expected with projected financing of more than $1.4 billion, primarily to support private projects aligned with the Chilean Government’s growth agenda. In addition, the technical assistance agenda will continue to advance the strategic objectives set.

Impact and future prospects

CAF’s Country Strategy for Chile not only seeks to promote economic development, but also ensure that it is equitable and sustainable in the long term. The strengthening of regions, the transition towards a green economy and the promotion of digitalization are key pillars to achieve comprehensive and resilient development.

The joint work between CAF and the Government of Chile reflects a firm commitment to progress and innovation in crucial areas for the country. The focus on decentralization, environmental sustainability and digital transformation points a path towards a more inclusive and prosperous future for all Chileans.

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