To: Chairperson, Board of Governors
Inter-American Investment Corporation (IDB Invest)
I am pleased to present the Annual Report for the year 2021, along with the financial statements for the years ending on December 31, 2021, and 2020, pursuant to the provisions of the agreement establishing the Inter-American Investment Corporation, whose brand is IDB Invest.
Latin America and the Caribbean (LAC) is slowly mending from a crisis that threatens earlier efforts to set the region on a path towards greater economic and social progress. A strong, sustainable, and more inclusive recovery requires key contributions from the private sector, the main driver of economic activity and employment in the region, and higher levels of investment to trigger innovation and build up the capital needed for long-term development.
IDB Invest is in a unique position to help LAC countries meet this critical challenge through the private sector. Through our Vision 2025, a roadmap to accelerate the region's recovery and enable sustainable, inclusive growth, we are focused on five priority areas: climate action, gender and diversity, small and medium-size enterprises (SMEs), the digital economy and regional integration and value chains.
A couple of examples illustrate how this strategy guides our work:
In our region, climate change deepens inequalities, hitting hardest those with fewer resources underlining the need for alternatives to respond to climate risks and build resiliency, including SMEs. At COP26 in Glasgow, we announced our commitment to align our portfolio to the Paris Agreement by 2023, by investing in projects that contribute to reversing the negative trends of climate change and mobilizing private capital through innovative financial solutions.
Women and minorities were disproportionately affected by the pandemic, a fact that demands
an emphasis on redressing inequality and practicing what one preaches: our own efforts towards creating an equitable workplace were rewarded when we became the first development bank in the Americas to earn the prestigious EDGE Move global certification.
The year-end results show that IDB Invest surpassed its targets in the face of complex challenges, delivering a record volume in financing to the region. Commitments totaled $6.3 billion, while core mobilization reached $3 billion, a record milestone. It closed 2021 with a combined portfolio of $10.9 billion in development assets.
Those results confirm that IDB Invest remains the multilateral partner of choice for LAC’s private sector at a time when mobilizing more capital from investors seeking higher returns
and sustainable impact is a pressing and very demanding task.
As President of the IDB and Chairman of the Board of Executive Directors of IDB Invest and of the Donors Committee of IDB Lab, I am committed to strengthening the IDB Group’s capacity to promote development through the private sector, a critical stakeholder in building a sustainable recovery for the region. Working together with our clients and partners, we will fulfill the objectives set in our Vision 2025, so we can serve our ultimate mission of improving lives.