AFOREs to Participate in Development Poles’ Infrastructure

The Retirement Fund Administrators (AFOREs) are set to finance infrastructure projects that will be part of 10 development poles announced by Mexico’s president-elect, Claudia Sheinbaum. According to the Mexican Association of AFORES (AMAFORE), this investment aligns with the AFOREs’ usual practice of investing in infrastructure projects.

During the inauguration of the AFOREs Fair 2024, Guillermo Zamarripa, President, AMAFORE confirmed that AFOREs investments would be focused on infrastructure projects, many of which will be linked to regional development and the establishment of the development poles.

Zamarripa underscored the contribution of AFOREs in infrastructure financing, noting that their long-term investment horizon makes them natural financiers for such projects. He also emphasized the potential for collaboration between the public and private sectors in developing these projects, reports El Economista. 

President-elect Sheinbaum’s strategy for nearshoring involves continuing the development poles strategy initiated by the current government in the southeastern part of the country. She plans to establish additional hubs across various regions, aiming to complete her administration with 10 industrial corridors nationwide, each with a distinct sectoral focus.

According to the National Commission of the Retirement Savings System (CONSAR), as of June 2024, AFOREs had invested MX$628.7 billion (US$34.9 billion) in the infrastructure sector. These investments are made through private debt and structured instruments, representing 10% of their total portfolio, which amounts to MX$6.2 trillion.