CAF invests US$ 10 million in Cofide: a key boost for sustainable development

CAF invests US$10 million in Cofide Peru's economic landscape is being boosted by the recent US$10 million investment made by the Development Bank of Latin America and the Caribbean (CAF) in the Development Financial Corporation (Cofide). This initial capital injection marks a milestone in the collaboration between both institutions, thus consolidating their commitment to the sustainable development of the country. Sergio Díaz-Granados, Executive President of CAF, highlighted the importance of supporting the Peruvian private sector through strategic alliances such as the one established with Cofide. In his words, the willingness to enhance the promotion and financing of investment in Peru, aiming to improve long-term productivity and competitiveness, is emphasized. The relationship between CAF and Cofide is not new, dating back to almost three decades of collaboration on various projects. However, this investment represents a significant step by converting CAF's preferential shareholding participation into common shareholding, which will strengthen Cofide's financial position and corporate governance. In addition to the financial support, CAF's presence on Cofide's Board of Directors promises improvements in internal management and the reputation of the financial institution. It is expected that this partnership will help mobilize greater private resources and enhance support for SMEs and innovation in the country. The Vice Minister of Economy of the Ministry of Economy and Finance, Carlos González Mendoza, emphasized the importance of having a strong development bank in Peru, capable of adapting to changing needs and venturing into key areas such as environmental protection and renewable energies. In this sense, he urged Cofide to take on new responsibilities and explore internal development opportunities. During the event "Modern Development Banking and its Impact on Sustainable Development in Peru," both Díaz-Granados and González emphasized the relevance of this investment not only in financial terms but also in its long-term impact on the Peruvian economy. It is expected that the presence of CAF and other multilateral organizations in Cofide will contribute to raising its credit rating and generating a greater flow of investments. In a context where international cooperation plays a crucial role in the post-pandemic economic recovery, CAF's investment in Cofide represents a significant step towards strengthening the Peruvian financial sector and promoting key initiatives for sustainable development. Undoubtedly, this agreement lays the foundation for fruitful and sustainable collaboration between both institutions for the benefit of the economy and the well-being of the Peruvian population.