Driving Capital Mobilisation in Latin America

The Vice President for Europe, Latin America and the Caribbean of the International Finance Corporation (IFC) joined Canning House for a roundtable focusing on their work in Latin America to create jobs and prosperity.

Alfonso García Mora began by setting out the IFC’s pillars and priority sectors. Ultimately, the organisation’s aim is to end poverty, which they aim to do by fostering high-quality jobs across the world. This work is guided by three pillars: building human and physical infrastructure, policies and regulations, and mobilising capital. The IFC has identified the sectors which have the highest job creation potential, and Latin America is well placed to take advantage of them. In infrastructure, there is a demand for high-quality projects combined with enormous clean energy potential. Meanwhile, Latin America is already a major player in international mining and tourism and has an abundance of tourism opportunities.

The discussion began to focus on capital mobilisation and the IFC’s focus on private sector engagement to achieve its long-term goals. Alfonso positioned the IFC as an originator that can lay the groundwork for wide private investment. Under his leadership, the organisation has changed their strategy from using mostly bank funds to mobilising private capital for projects, devaluing profitability. To facilitate private investment, the IFC will carry out due diligence for investors and help organisations issue bonds. This new focus will create private sector interest in public projects and increase the total capital available.

A key challenge facing the IFC is how to effectively engage with the small and medium businesses, which will create jobs in the region. Alfonso was optimistic that digitisation will connect these businesses to global supply chains and new opportunities. To help identify relevant actors, the IFC has offices on the ground across the region, which are crucial to government and business engagement.

The IFC has a long history of supporting endeavours in Latin America, and Canning House is grateful to Alfonso García Mora for sharing his vision of the organisation’s future.