IDB Group Plans $5 Billion Investment Push for Uruguay

The IDB Group expects to support businesses, encourage investment and help the country prepare for new trade opportunities.

The Inter-American Development Bank (IDB) Group plans to provide up to $5 billion in support for Uruguay between 2026 and 2030, backing a new strategy focused on boosting investment, strengthening public safety and improving essential infrastructure. The new Country Strategy was launched in Montevideo by IDB Group President Ilan Goldfajn and Uruguay's President Yamandú Orsi, setting out a roadmap that combines public financing, private-sector investment and technical cooperation. A major part of the strategy focuses on improving innovation and competitiveness to strengthen Uruguay's economy. The IDB Group expects to support businesses, encourage investment and help the country prepare for new trade opportunities.

A $20 million financing agreement has already been signed for Uruguay's Internationalization Promotion Programme. Plans also include a Bioeconomy and Agri-Food Innovation Programme, along with a proposed $400 million policy-based programme to help businesses benefit from the European Union-Mercosur Agreement and the country's closer engagement with the OECD.

The IDB is also working with Uruguay's Central Bank and Ministry of Economy and Finance to strengthen capital markets and expand access to long-term financing. Meanwhile, IDB Lab currently manages a portfolio of 75 active projects across the country.

Security and Social Well-Being Receive Major Backing

Public safety is another key priority under the strategy. During the visit, the IDB signed a $25 million operation under a $200 million credit line to improve the prison system, strengthen police capabilities and expand training in criminal investigations and intelligence.

The bank is also preparing a new $150 million programme to support Uruguay's National Public Security Plan and expand the Comprehensive Citizen Security Programme II. Combined, IDB Group support for security initiatives is expected to reach $350 million. Alongside security investments, the partnership will continue supporting programmes aimed at reducing child poverty and improving education outcomes.

Transport, Housing and Energy Projects Expand

The strategy also includes significant investment in public services and infrastructure. Earlier this year, the IDB approved a $70 million project to improve housing, expand access to essential services and support vulnerable communities. Work is also progressing on a proposed $200 million operation to modernise Montevideo's metropolitan transport system and improve transport infrastructure. Additional projects include $51 million for water security and around $80 million to strengthen electricity networks and improve energy security.

The IDB Group expects to provide a record $1.65 billion in financing during 2026, more than three times the amount approved last year, as it deepens its partnership with Uruguay and supports long-term economic and social development.