Mexico

Global partner and the second largest economy in Latin America

Positioned between the United States to the north and Central America to the south, Mexico has an important geo-strategic position. With a population of around 130 million, it is the largest country with Spanish as its official language. The emerging nation ranks 15th among the world’s largest economies and has come to play an intermediary role between industrialised and developing countries. This makes it a global partner for Germany in the context of development cooperation. Notwithstanding its economic progress, the country faces a plethora of challenges. Social inequality is high, with 44 % of the population living in poverty. High crime rates, environmental pollution, and a lack of transparency have an impact on everyday life, especially in the cities. As a result, on behalf of the German Federal Government, KfW Development Bank is assisting Mexico with combatting climate change, protecting global public goods, preserving biodiversity and forging ahead with sustainable urban development.

Mexico has the second largest economy in Latin America, after Brazil. The economy is evolving dynamically, but private businesses in particular have suffered greatly, including from the coronavirus crisis. So KfW is helping to support small and medium-sized enterprises (SMEs) by issuing loans to alleviate the negative impacts of the pandemic.

KfW and Mexico have been long-standing partners when it comes to expanding renewable energy sources like wind and solar. And Financial Cooperation has now branched out into climate action and sustainable urban development. Ten years ago, Mexico was already one of the first emerging economies to adopt the goal of limiting carbon dioxide emissions long-term. As part of this process, mobility in urban areas will need to be managed in a sustainable, environmentally friendly manner; KfW is supporting efforts to expand local public transport and ensure adoption of eco-friendly drive systems within the transport sector.

There is also strong demand for housing in urban areas due to the increase in the urban population. For this reason, KfW has been active for many years in supporting the construction of energy-efficient buildings with at least 20 % lower energy consumption. To date, via EcoCasa, KfW has financed 83,220 homes for more than 332,880 Mexicans in all of the country’s four climate zones. EcoCasa not only saves around one million tonnes of CO2 over the lifetime of the buildings; it also improves the living conditions of many low-income families by providing higher-quality accommodation.

Project information - EcoCasa

Mexico’s rich biodiversity is one of the country’s distinguishing features and places it among what are known as the world’s megadiverse countries. But adverse impacts on the environment threaten the country’s vast and rich biodiversity. Emissions pollute the air, soil and water, and climate change is also evident from the increase in extreme weather events. Against this backdrop, Mexico has been a role model in the environmental legislation it has passed, and the country adopted a national biodiversity strategy in 2016.

KfW is providing support to Mexico so that it can preserve its biodiversity. This involves the expansion and improved management of nature parks and protected areas. For example, ecological corridors are being established to interlink different ecosystems. In addition, programmes aimed at sustainable forest management and best use of biodiversity are also being implemented. Plus, KfW is supporting programmes to improve the water supply in arid northern Mexico and enhance municipal forest management.

Further information

Local office

KfW Office Ciudad de México

Director KfW Office: Emiliano Detta
Av. Insurgentes Sur 826, PH
Col. Del Valle, Del. Benito
Juárez
03100 Ciudad de México
Mexico

Phone: +52 55 55 23 59 35