As prepared for delivery
Mapocho Station
Santiago, Chile
Nicolás Grau, Minister of Economy, Development, and Tourism of the Government of Chile;
Jozef Síkela, Commissioner for International Partnerships of the European Commission;
Good afternoon, distinguished authorities, guests, ladies, and gentlemen,
It is a great honor to be here in Chile – a land of striking extremes, from glaciers in the south to deserts in the north.
I was just in Punta Arenas, where I participated in the International Investment Forum, and saw firsthand the natural beauty of Torres del Paine and the region’s potential.
In the Atacama Desert – the driest place on Earth – Chile has done something remarkable: growing grapes and avocados where rainfall is almost nonexistent. Through ingenuity and investment, Chile exports wine and produce to the world. And I can personally confirm that the wine travels very well!
It’s a reminder that all challenges can yield opportunity. And today, I want to invite us to apply that same mindset to Latin America and the Caribbean.
Latin America and the Caribbean’s Potential
Latin America and the Caribbean is not only resource-rich; It is also positioned for long-term industrial growth.
Several competitive advantages set Latin America apart:
The region holds two-thirds of the world’s lithium and 38% of its copper, critical for industries ranging from electronics and infrastructure to energy and transportation.
Energy power costs in many areas are among the most competitive globally, attracting investment in energy-intensive industries.
Latin America and the Caribbean is also key for safe and stable global supply chains.
And it can also produce enough food to ensure global food security
Chile, in particular, stands out for its strategic position in global trade. Chile has 30 treaties with 65 economies, covering 88% of the world’s GDP and granting preferential access to 65% of the world’s population.
In addition to its trade agreements, Chile is also the largest producer of copper and the second-largest producer of lithium. The potential is huge: Chile can generate 70 times more alternative energy than its current levels, or five times the total energy produced in Latin America and the Caribbean today.
This capacity, in particular, is vital for Europe, which is seeking to diversify supply chains under its new Critical Raw Materials Act. Chile is positioning itself as a key supplier of green hydrogen, with agreements already signed with Germany.
This industry has the potential to create 32,000 jobs in Chile, strengthening value chains, and generating new economic opportunities for communities, fostering shared prosperity.
Leveraging these advantages requires a shared vision between governments and the private sector to turn this potential into real growth. No one can do it alone.
The Role of the Private Sector in Development
The role of the private sector in development is not just an economic strategy, but a common interest that unites the region. It creates jobs, strengthens industries, and enhances competitiveness, benefiting businesses, workers, and communities alike.
The more prosperous Latin America and the Caribbean is, the safer and more prosperous the entire hemisphere will be.
This is what the region needs, and this is how we are responding.
Private-Sector MDB
This is why we are positioning the IDB as the "private-sector MDB" – leveraging our 65-plus years of experience and closeness to the public sector of the region to create synergies that benefit all.
This is backed by real capital and concrete action:
More than 44% of our financing is now directed to private-sector initiatives through IDB Invest and IDB Lab, with the ambition to reach parity by 2030.
IDBInvest+, a new vision, industry-leading "originate-to-share" business model, and a $3.5 billion capital increase for IDB Invest, our private-sector arm.
IDBLab+, a more sustainable and scalable business model and $400 million in additional resources for IDB Lab, our innovation laboratory and venture-capital arm.
But financing alone is not enough; investors also need the right conditions to thrive.
Enabling Conditions
It’s critical that we create an enabling environment for private-sector financing and investment at scale. Without the right conditions, we won't be able to mobilize the needed private sector resources and investment.
The foundation of strong economies is an efficient public sector – one that combines the need for regulations and policies that enable private-sector development. This public policy base creates an environment conducive to growth, innovation, and investment.
This is where institutions like ours have a critical role to play by helping improve the policy framework and business environment. The IDB's policy-based loans are tailor-made for that very purpose.
In addition, the IDB works with governments and the private sector on:
- Developing infrastructure that supports industrial expansion, including ports, logistics hubs, and reliable transportation.
- Training the workforce and developing skills to ensure industries can scale efficiently.
An example of this approach is our work in Chile to mobilize private investment in green hydrogen.
Through a $1 billion financing facility, with contributions from MDBs and international lenders, the IDB has contributed $400 million to support the growth of Chile’s green-hydrogen sector.
This facility is expected to attract $5 billion in private investment by 2040 by providing contingent credit lines and guarantees to reduce risks for private developers.
Another example is a project that highlights the potential of our new model: also here in Chile, we invested $240 million to help energy companies recover costs from sharp hikes in electricity prices.
By purchasing nearly all the certificates issued by the government’s Tariff Stabilization Fund, we provided liquidity to the sector and attracted up to $2.16 billion from private investors – showing how we bridge market gaps and crowd in private capital.
Another example is Uruguay, where we are helping the government position the country as an innovation hub:
We are helping the government strengthen digital infrastructure and cybersecurity, develop tech talent, and accelerate the adoption of artificial intelligence.
At the same time, we are supporting entrepreneurs who create solutions for an aging population and helping thousands of micro, small, and medium-sized enterprises with their digital transformation.
Having the private sector play a role in development isn’t just an opportunity – it’s an area of common interest to all of our members.
The story of Chile producing vineyards in deserts is a lesson in perseverance – of making the unlikely possible through determination and investment.
Latin America and the Caribbean faces its own challenges. But with the same persistence, we can unlock the region’s full potential, drive development, and improve lives.
The IDB serves as a bridge – connecting the region to the world, connecting challenges with opportunities, and sometimes one government to the next one.
Thank you!