2025.02.18
On February 18, the Japan International Cooperation Agency (JICA) signed a contribution agreement with the Inter-American Development Bank (IDB) and Inter-American Investment Corporation (IDB Invest) in Yokohama, Japan, for the Private Sector Investment Finance project Trust Fund Achieving Development of Latin America and the Caribbean (TADAC).
While the Latin America and the Caribbean (LAC) region has relatively high average income levels among developing regions, significant and deep-rooted social challenges remain, including income and regional disparities, gender inequality, and vulnerability to climate change. Out of the 169 SDGs targets, only 30 are expected to be achieved by 2030 in the region, and the estimated annual SDGs financing gap stands at USD 650 billion. With governments in the region struggling with limited fiscal space for increased public spending, mobilizing private sector investment is critical to bridging this gap.
To address this issue, JICA is investing up to USD 1.5 billion in the Trust Fund Achieving Development of Latin America and the Caribbean (TADAC), which is set to be established within the Inter-American Development Bank (IDB), the largest development finance institution in the LAC region, and managed by the Inter-American Investment Corporation (IDB Invest), the private sector investment arm of the IDB Group. TADAC will co-finance alongside IDB Invest to support private sector initiatives that contribute to the achievement of the SDGs. JICA’s investment aims to reduce the SDGs financing gap in the region and contribute to its sustainable, socioeconomic development.
The signing ceremony was attended by IDB President Ilan Goldfajn, IDB Invest CEO James Scriven, and JICA President Tanaka Akihiko. The event also served as an opportunity for those in attendance to exchange views on further cooperation and collaboration to resolve regional issues.
Signing of the contribution agreement (From the left;IDB Invest CEO James P. Scriven, IDB President Ilan Goldfajn, JICA President Tanaka Akihiko)
In front of Japanese Overseas Migration Museum, JICA Yokohama (From the left; IDB Executive Vice President Jordan Schwartz, IDB Lab CEO Irene Hofman, IDB President Ilan Goldfajn, JICA President Tanaka Akihiko, IDB Invest CEO James P. Scriven, JICA Senior Vice President Imoto Sachiko)
Terms and Amount of Loan
1. Investee
Trust Fund Achieving Development of Latin America and the Caribbean
2. Country (Target Areas)
Latin America and the Caribbean
3. Investment Amount
Up to $1.5billion (initial USD 1 billion with an option to increase to USD 1.5 billion)
4. Project Purpose
The project aims to support private sector initiatives in the region through investment in a trust fund to be created within the IDB, narrowing the SDGs financing gap and contributing to sustainable socioeconomic development.
5. Project Component
Provide essential financing for IDB Invest’s private sector lending initiatives in Latin America and the Caribbean by investing in a trust fund to be created within the IDB.
6. Contribution to SDGs
Goal 17（Partnerships for the goals）as the primary focus
Sns share!
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