Executive Summary
The CAF Colombia Country Strategy 2023-2026 outlines CAF’s commitment to supporting Colombia’s sustainable, inclusive, and equitable growth. Aligned with Colombia’s National Development Plan, the strategy is structured around four pillars: (1) rural development for sustainability and inclusion, (2) sustainable productive transformation, (3) closing social gaps and promoting equity, and (4) institutional strengthening and modernization. Key actions include improving rural infrastructure and land access, fostering green and diversified economic growth, enhancing access to quality education, health, water, and digital connectivity, and supporting digital transformation and governance at all government levels. Cross-cutting themes address gender, diversity, climate action, and biodiversity. CAF will leverage a range of financial instruments, technical cooperation, and partnerships with public and private sectors to implement high-impact, measurable projects, with a strong focus on reducing regional disparities and supporting Colombia’s transition to a greener, more inclusive economy.
Characteristics
- Four Strategic Pillars: CAF’s 2023-2026 strategy for Colombia is built on four pillars—(1) rural development for sustainability and inclusion, (2) sustainable productive transformation, (3) social and human development with a focus on equity, and (4) institutional strengthening and modernization, especially through digital transformation.
- Cross-Cutting Themes: The strategy integrates transversal approaches such as environmental sustainability, climate action, gender equality, diversity, inclusion, and peacebuilding, ensuring these are embedded in all interventions.
- Territorial and Inclusive Focus: Emphasis is placed on reducing regional disparities by prioritizing investments and technical support in less developed areas, improving infrastructure, basic services, and local government capacities, and leveraging cities as regional development hubs.
- Sustainable and Green Growth: CAF positions itself as the “green bank,” supporting Colombia’s transition to a low-carbon, biodiversity-rich, and resilient economy through investments in clean energy, climate-smart agriculture, sustainable infrastructure, and the development of green financial instruments.
- Comprehensive Financing and Technical Support: The strategy offers a range of financial products (loans, guarantees, equity investments, blended finance) and technical cooperation to both public and private sectors, with a focus on high-impact, measurable projects aligned with national development priorities and the SDGs.
- Institutional and Policy Support: CAF supports the modernization of public administration, regulatory improvement, digital government, and capacity building for public officials, aiming to enhance governance, transparency, and the effectiveness of public policy implementation.
Actors
Civil Society Actors
Economic Actors
Political Actors
Research and Innovation Actors
Practical Applications
- Financing and technical support for the Catastro Multipropósito (Multipurpose Cadastre) to improve land tenure, including digital transformation and collaborative mechanisms for implementation.
- Support for the Plan Caminos Comunitarios para la Paz Total, focusing on the recovery, construction, and maintenance of rural tertiary roads, with community organization involvement.
- Financing and technical assistance for the Plan Nacional de Riego para la Economía Familiar y Campesina, supporting irrigation infrastructure and comprehensive rural development projects.
- Support for the implementation of the Plan Nacional de Agrologística, including financing for the structuring and implementation of agrologistics districts and specialized logistics infrastructure.
- Assistance to the Agencia Nacional de Tierras (ANT) and Agencia de Desarrollo Rural (ADR) with financial instruments and technical support for land formalization and rural development programs.
- Promotion and financing of climate-smart agriculture initiatives, including the development of climate risk management tools such as index-based insurance and parametric insurance for the agricultural sector.
- Support for the development and expansion of alternative financial services for the rural sector, including leasing, Fintech solutions, and strengthening rural cooperative financial systems.
- Financing and technical support for the expansion and modernization of the national transportation infrastructure, including highways, ports, airports, and multimodal logistics corridors, with a focus on 4G and 5G concessions.
- Establishment and operation of the Ashmore CAF-AM I and II infrastructure debt funds, which finance major road infrastructure projects under the 4G program and are planning a second fund for roads, ports, and airports.
- Support for the implementation of the Política Portuaria and Plan Maestro Fluvial, including financing for prioritized projects.
- Joint work with the government on the development of national railway infrastructure, including reactivation of railways for tourism and commercial purposes.
- Financing for the renewal of the cargo transport fleet to reduce CO2 emissions, in partnership with private sector actors.
- Development and support of private capital funds for infrastructure projects, including those managed by CAF Asset Management Corp. (CAF-AM).
- Implementation of the Programa de Gestión Integral de Fronteras (PROGIF), supporting binational integration projects, especially on the Colombia-Venezuela and Colombia-Ecuador borders.
- Support for the integration of migrant populations through infrastructure projects in housing, health, education, entrepreneurship, and financial inclusion.
- Promotion and financing of the Agenda Verde for the productive sector, including funds for sustainable biodiversity-based businesses, in partnership with Bancóldex, Finagro, and Colcapital.
- Support for the development of the carbon market in Colombia, aligned with the Iniciativa Latinoamericana de Créditos de Carbono, and other green financing mechanisms.
- Implementation of the Banca de las Oportunidades program and support for the Unidad de Regulación Financiera to improve financial inclusion, especially for vulnerable populations, women, and migrants.
- Technical assistance to Bancóldex and Finagro for digital transformation of microfinance and solidarity sector institutions.
- Support for the Estrategia de Inclusión Crediticia para la Economía Popular, including capacity building and innovative financial product design for Grupo Bicentenario entities.
- Financing and support for the Programa Nacional de Agua Potable y Saneamiento Básico Rural, including the creation of a project structuring unit for municipalities and communities.
- Financing and support for the Programa de Conectividad Digital and fixed broadband solutions in regions with the greatest digital divide.
- Support for the Plan Nacional de Espacios Educativos para la vida comunitaria, focusing on rural areas and articulation between secondary and higher education.
- Financing for infrastructure expansion in higher education and support for the use of technology in education, including teacher training and digital platforms.
- Support for the strengthening of Territorios Culturales, Creativos y de los Saberes (TCCS) and the development of cultural and creative economies.
- Support for the implementation of the Plan Nacional de Transformación Digital and telemedicine programs to improve health coverage and quality, especially in vulnerable and remote populations.
- Financing and technical support for the universalization of electricity service in rural areas and the implementation of the Estrategia de Transición Energética, including renewable energy projects (wind, solar, biogas, biomass, geothermics).
- Support for the development of the green hydrogen sector and the industrialization strategy based on powershoring.
- Support for the Red de Biodiverciudades de América Latina y el Caribe, including financing for sustainable urban transport and green infrastructure projects.
- Support for conservation and reforestation projects in strategic areas, including the Amazon, and the implementation of Núcleos de Desarrollo de la economía forestal y de la biodiversidad.
- Support for the Corredor Marino del Pacífico Este Tropical (CMAR) and the creation of a fiduciary mechanism for coral reef protection in the Colombian Caribbean.
- Implementation of the Programa Prosperidad, a financing program for territorial entities to support investment projects aligned with the SDGs.
- Operation of the Fondo de Inversión y Desarrollo Empresarial (FIDE) to support the development and strengthening of SMEs through venture capital.
- Technical cooperation programs (CAF PPI and CAF PPSA) for pre-investment in economic integration and water/sanitation projects.
- Support for the digital transformation of public administration, including the design and implementation of a GovTech roadmap, ethical AI use, and regulatory sandboxes.
- Support for the modernization of public institutions, including improvements in tax collection systems, data management, and trade facilitation.
- Capacity building for public officials through programs like Liderazgo para la Transformación 2.0 and partnerships with educational institutions.
- Support for the implementation of participatory territorial planning processes, especially for RAP and RAPE regions, and the development of smart cities and territories.
- Implementation of gender, inclusion, and diversity strategies in all operations, including support for financial inclusion policies with a gender perspective and accessibility for people with disabilities.
- Mobilization of green financing and technical support for climate adaptation and biodiversity preservation projects, including water management, flood protection, and reforestation initiatives.
Resulting Commitments
- CAF aims to double its portfolio by 2030, reaching USD 60,000 million, following a capital increase of USD 7,000 million approved between December 2021 and March 2022.
- CAF will support the financing and implementation of the Catastro Multipropósito (Multipurpose Cadastre) to improve land tenure, with a focus on digital transformation and collaborative mechanisms for its execution.
- CAF will finance the Plan Caminos Comunitarios para la Paz Total (Community Roads for Total Peace), prioritizing the recovery, construction, and maintenance of rural tertiary roads, and updating the inventory of the tertiary road network.
- CAF will support the implementation of the Plan Nacional de Riego para la Economía Familiar y Campesina (National Irrigation Plan for Family and Peasant Economy), including projects for multipurpose and on-farm irrigation infrastructure.
- CAF will finance the expansion of energy transmission and distribution networks, including projects prioritized by the Unidad de Planeación Minero Energética (UPME), and support the universalization of electricity service in rural areas.
- CAF will promote the incorporation of non-conventional renewable energies (wind, solar, biogas, biomass, geothermal) into Colombia’s energy matrix, including financing for related projects.
- CAF will support the development of the hydrogen green sector as part of Colombia’s energy transition and industrialization strategy.
- CAF will contribute to the reduction of 2.1 million tons of CO2 emissions in the transport sector by supporting the renewal of the cargo transport fleet.
- CAF will finance the implementation of the Plan Nacional de Inversiones en vías nacionales (National Investment Plan for National Roads), including primary and secondary road networks, and support 5G concessions.
- CAF will finance the Plan Nacional de Suministro de Agua Potable y Saneamiento Básico Rural (National Plan for Rural Drinking Water Supply and Basic Sanitation), including the creation of a project structuring unit for municipalities and communities.
- CAF will support the implementation of the Programa de Conectividad Digital y Conectividad Fija Nacional (Digital Connectivity and National Fixed Connectivity Program), with emphasis on broadband solutions in regions with the greatest digital gap.
- CAF will support the implementation of the Plan Nacional de Espacios Educativos para la vida comunitaria (National Plan for Educational Spaces for Community Life), focusing on rural areas and the articulation of secondary and higher education.
- CAF will support the government’s plan to expand university enrollment by financing higher education infrastructure.
- CAF will support the implementation of a national telemedicine program to improve health coverage and quality in isolated populations.
- CAF Asset Management, through Ashmore CAF-AM, has established a private infrastructure debt fund in Colombia with investment commitments of around USD 500 million, currently financing 7 road infrastructure projects.
- CAF plans to create a second infrastructure fund in Colombia, focused on financing roads, ports, and airports.
- CAF will support the implementation of the Programa Prosperidad, dedicated to financing projects or investment programs for territorial entities to help meet the SDGs.
- CAF will support the implementation of the Programa Integral de Fronteras (Comprehensive Border Program), with actions to promote commercial, productive, and social integration, especially at the Colombia-Venezuela and Colombia-Ecuador borders.
- CAF will support the implementation of the Red de Biodiverciudades de América Latina y el Caribe (Network of Biodiverse Cities of Latin America and the Caribbean), including financing for sustainable urban transport systems with zero and low emissions.
- CAF will support the conservation and reforestation of strategic areas, the implementation of Development Nuclei for the forest and biodiversity economy, and the consolidation of restoration processes, especially in the Amazon.
- CAF will support the implementation of the Corredor Marino del Pacífico Este Tropical (CMAR) and the creation of a specific trust mechanism for coral reefs in the Colombian Caribbean.
- CAF will support the implementation of the Programa Nacional de Agua Rural (National Rural Water Program).
- CAF will support the implementation of the Plan Maestro Fluvial (Master River Plan) and the Política Portuaria (Port Policy).
- CAF will support the implementation of the Estrategia de Transición Energética (Energy Transition Strategy), including the mobilization of non-reimbursable resources for high-impact components.
- CAF will support the implementation of the Plan Nacional de Transformación Digital (National Digital Transformation Plan) for the health sector.
- CAF will support the implementation of the Programa de seguridad alimentaria y nutrición (Food Security and Nutrition Program), with special emphasis on early childhood.
- CAF will support the implementation of the Programa de formación docente (Teacher Training Program) to strengthen digital and pedagogical skills.
- CAF will support the implementation of the Programa de conectividad para las comunidades (Connectivity Program for Communities), including infrastructure and technological equipment for schools.
- CAF will support the implementation of the Programa de telemedicina (Telemedicine Program) to improve health coverage and quality in isolated populations.
- CAF will support the implementation of the Plan Nacional de Espacios Educativos (National Plan for Educational Spaces).
- CAF will support the implementation of the Plan Nacional de Inversiones en vías nacionales (National Investment Plan for National Roads).
- CAF will support the implementation of the Plan Nacional de Suministro de Agua Potable y Saneamiento Básico Rural (National Plan for Rural Drinking Water Supply and Basic Sanitation).
- CAF will support the implementation of the Plan Nacional de Riego para la Economía Familiar y Campesina (National Irrigation Plan for Family and Peasant Economy).
- CAF will support the implementation of the Plan Caminos Comunitarios para la Paz Total (Community Roads for Total Peace).
- CAF will support the implementation of the Plan Nacional de Agrologística (National Agrologistics Plan).
- CAF will support the implementation of the Plan Maestro Fluvial (Master River Plan).
- CAF will support the implementation of the Estrategia de Transición Energética (Energy Transition Strategy).
- CAF will support the implementation of the Plan Nacional de Transformación Digital (National Digital Transformation Plan).
- CAF will support the implementation of the Programa de seguridad alimentaria y nutrición (Food Security and Nutrition Program).
- CAF will support the implementation of the Programa de formación docente (Teacher Training Program).
- CAF will support the implementation of the Programa de conectividad para las comunidades (Connectivity Program for Communities).
- CAF will support the implementation of the Programa de telemedicina (Telemedicine Program).
Technical Details
Scope
Bilateral
Lead Country
Colombia (COL)
Policy & Strategic Alignment
EU Policy Alignment
SDG Alignment
Beneficiary Groups
Afro-descendant Groups
Indigenous Peoples & Ethnic Groups
Indigenous Communities
Indigenous Peoples & Ethnic Groups
Rural Populations
Rural & Remote Communities
Youth
Students & Youth
Women in Tech
Women & Girls
Key Performance Indicators (KPIs)
CAF Total Lending Portfolio
CAF
Finance/Development Banking
Digital Connectivity Program Implementation
CAF, Ministry of ICT
Digital Infrastructure
Educational Spaces Plan Implementation
CAF, Ministry of Education
Education
Electricity Transmission Network Expansion
CAF, UPME, Ministry of Mines and Energy
Energy
Gender-Inclusive Financial Access Policy Implementation
CAF, Government of Colombia, financial sector
Finance/Gender Inclusion
GovTech and AI Policy Implementation
CAF, Government of Colombia
Public Sector Digital Transformation
Multipurpose Cadastre Implementation
CAF, Government of Colombia, local entities
Land Management/Rural Development
Plan Caminos Comunitarios para la Paz Total Implementation
CAF and Government of Colombia
Rural Development/Peacebuilding
Rural Water and Sanitation Plan Implementation
CAF, Ministry of Housing
Water and Sanitation
Transport Sector CO2 Emissions Reduction
CAF, Ministry of Transport, sector partners
Transport/Climate Change