A. M. IDB Invest and the Japan International Cooperation Agency (JICA) announced the creation of the JICA Trust Fund for the Development of Latin America and the Caribbean (TADAC), with an initial contribution of $1 billion. This fund, JICA’s largest for the private sector in the region, seeks to attract more private investment by co-financing projects that promote sustainable growth.
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The initiative responds to the growing financing gap in the region, and IDB Invest is adopting a business model based on collaboration and co-investment with other institutions. The TADAC Fund will facilitate co-financing with JICA, reduce duplication and leverage IDB Invest’s expertise. It also has the potential to expand to $1.5 billion over the next three years.
This fund aligns with IDBImpact+, a strategy that unifies the work of IDB, IDB Invest and IDB Lab to expand impact and encourage private investment. “This fund marks a milestone in our collaboration with JICA and will catalyze private investment to drive sustainable development in the region”, said Ilan Goldfajn, president of the IDB.
The president of JICA, Dr. Akihiko Tanaka, highlighted that this investment will contribute to closing the financing gap needed to achieve the Sustainable Development Goals (SDGs) in Latin America and the Caribbean. JICA has been a strategic partner of the IDB for more than 40 years, consolidating its support to the region in infrastructure, climate mitigation and poverty reduction.
The collaboration between IDB and JICA was formalized in 2011 with a co-financing agreement that evolved into the Cooperación para la Recuperación Económica e Inclusión Social (CORE) framework. In 2024, JICA expanded CORE funding to $4 billion, strengthening investment in key sectors such as health, infrastructure, and risk management.
Through the CORE framework, JICA has also worked with IDB Invest and IDB Lab on strategic investments, such as co-investing in Brazilian healthcare company Dr. Consulta and supporting Japanese startups in Latin America. With the launch of the TADAC Fund, IDB Invest and JICA reaffirm their commitment to sustainable growth and economic transformation in the region.
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