From the Amazon to the Andes, from the Caribbean to Patagonia - the 33 countries in the Latin America and Caribbean region differ greatly in terms of their geography, politics and economy. They also combine many things, such as language, culture and history. The region has great economic potential: many countries have already reached middle income levels by global standards. At the same time, however, wealth is more unevenly distributed than almost anywhere else in the world. Many economies are heavily dependent on raw materials, domestic value added is often low and economic development is lagging behind its potential.

The region also has a wealth of natural resources and is one of the most biodiverse areas on earth. The Amazon rainforest is of global importance for climate protection and biodiversity. However, the region is particularly affected by the impacts of climate change: melting glaciers in the Andes are putting water availability and energy supply at risk, increasing hurricanes in the Caribbean are affecting infrastructure, tourism and economic growth, and extreme weather events are affecting vulnerable populations in particular and hampering sustainable economic development.

KfW supports the partner countries Bolivia, Brazil, Ecuador, Colombia, Mexico and Peru as well as regional organizations in South America, Central America and the Caribbean. The focus is on projects that combine environmental protection, climate action and tropical forest protection with sustainable economic development – for example, by promoting renewable energies, financing climate-friendly transport systems in growing cities and measures for the efficient and careful use of water as a resource.

KfW Development Bank’s 2025 commitments for the Latin America/Caribbean region amounted to EUR 1.43 billion.