CAF announces $8.5 billion plan to boost Latin American agriculture

In a significant move to bolster agricultural production across Latin America, the development bank CAF has unveiled its Agricultural Prosperity Strategy, pledging an investment of approximately US$8.5 billion by 2030. This ambitious program doubles the total historical financing CAF has allocated to the region's agro-sector and aims to enhance food security, develop rural infrastructure, and promote the adoption of more resilient production systems.

The announcement was made by Christian Asinelli, CAF's corporate vice president of Strategic Programming, during the Aapresid Congress. The strategy, initially presented in March 2025, sets an intermediate goal of US$5.5 billion by 2026. It focuses on financing projects related to family farming, food security, rural infrastructure, and climate change adaptation.

Asinelli highlighted the strategic importance of Latin American agriculture in global food production. The region currently feeds 1.3 billion people, accounts for 18.4% of global agricultural exports, generates around US$238 billion annually in net food exports, harbors half of the planet's biodiversity, and possesses nearly 30% of the world's renewable freshwater reserves. The strategy aims to incorporate at least 55,000 hectares with irrigation systems for family farming and benefit 10 million people through food security initiatives by the end of the decade.

While acknowledging the sector's potential, Asinelli noted that the primary challenge is no longer the volume of financial resources but rather the "architecture" of financing. He stressed the need for greater coordination between international organizations, national and provincial governments, and the financial system to avoid duplication and streamline access to credit. The agricultural sector is a vital contributor to the regional economy, representing about 7% of the gross regional product and providing employment for over half of the rural population.