CAF Launches US$5B Initiative for Children in Latin America

The Development Bank of Latin America and the Caribbean, announced the launch of Banco Futuro LAC, a new initiative aimed at mobilizing US$5 billion over five years to benefit 50 million children, adolescents and youth in the region. The announcement took place at UNICEF headquarters during the 80th session of the United Nations General Assembly.

The initiative positions CAF as the first multilateral development bank to apply UNICEF’s Child Lens Investment Framework (CLIF). Through this framework, projects will prioritize child well-being from design to implementation.

Data from UNICEF shows that every dollar invested in early childhood development can generate between US$4 and US$16 in economic and social benefits. Sergio Díaz-Granados, President, CAF, said the initiative reinforces the bank’s role as a leading regional investor in future generations.

“This initiative represents an important commitment from the Global South to future generations. As a regional development bank, we recognize that investing in children and youth is not only a moral obligation, but also the most profitable investment we can make for the sustainable development of our region,” Díaz-Granados said.

In Latin America and the Caribbean, nearly 255 million children and youth live in the region, with about 45% at risk due to poverty. This represents around 115 million young people requiring immediate attention. Catherine Russell, Executive Director, UNICEF, said the partnership will focus on essential areas such as early childhood development, education and protection against violence.

“In Latin America and the Caribbean, nearly 60% of the Sustainable Development Goals focused on children show no progress. These initiatives will strengthen access to essential pillars for children’s health and development while breaking the vicious cycle of poverty,” Russell said.

The initiative will seek to transform investment in children and youth by fostering new national and regional partnerships. These efforts will engage governments, businesses, and philanthropies to promote sustainable joint investments with measurable results for children. It will also develop innovative financing solutions with a child-focused approach.

The Banco Futuro LAC initiative emerges amid global aid funding cuts and growing challenges to children’s rights. By aligning with UNICEF, CAF positions itself as a Global South institution leading child-centered investment and establishing a potential model for other multilateral organizations worldwide.