Chile and IDB Group Unveil Plan to Unlock 400,000 Jobs

IDB Invest, the Group’s private-sector arm, expects to invest around $1 billion annually in Chile, giving the country a sizeable source of financing for infrastructure, innovation and other strategic priorities.

Chile and the Inter-American Development Bank Group have presented a joint economic agenda designed to attract investment, strengthen high-potential industries and support the creation or recovery of as many as 400,000 jobs over the coming years. The programme brings together public financing, private capital, policy support and technical knowledge to help major projects move forward while expanding opportunities for workers and businesses.

The agenda was announced during IDB Group President Ilan Goldfajn's visit to Santiago, where he met President José Antonio Kast, Finance Minister Jorge Quiroz, Economy, Development and Tourism Minister and Mining Minister Daniel Mas, along with business leaders. IDB Invest, the Group's private-sector arm, expects to invest around $1 billion annually in Chile, giving the country a sizeable source of financing for infrastructure, innovation and other strategic priorities.

Housing Finance Could Help Restore 180,000 Construction Jobs

Capital-market reform and the National Housing Fund, known as FONAVI, will form a central part of the partnership. The IDB and IDB Invest plan to provide $2 billion through guarantees and the mobilisation of additional financing, which could improve access to credit for Chilean families while reviving activity across the housing and construction industries.

This effort is expected to contribute to the recovery of approximately 180,000 construction jobs compared with employment levels before the pandemic. Easier access to housing finance can also create wider economic benefits because new building activity supports contractors, engineers, suppliers, transport providers and many small businesses connected to the construction chain.

The partnership will also help Chile modernise its capital market so that public and private resources can reach productive projects more efficiently. IDB Invest will play a major role in bringing new international investors into the country and developing financing solutions suited to Chile's economic priorities.

Faster Investment Permits Could Support 150,000 Jobs

Lengthy approval processes can delay projects, increase costs and discourage investors, making permit reform another major focus of the agenda. The IDB Group will support implementation of Chile's Framework Law on Sectoral Authorizations and the use of digital tools and artificial intelligence to shorten processing times, including those linked to maritime concessions.

IDB estimates suggest that more efficient permitting could help generate around 150,000 jobs during the next five years. Quicker decisions would be especially important for mining and critical minerals, where Chile already holds a strong global position and could create another 10,000 jobs through new investment, stronger infrastructure and more developed value chains.

Support for the minerals sector will include policy reforms, private-capital mobilisation and better risk management. These measures could help Chile move beyond resource extraction by encouraging more domestic processing, specialised services and technology-based businesses connected to the industry.

Digital Skills and Safer Communities Join the Growth Agenda

Chile and the IDB Group will work to establish knowledge-based services as a stronger source of exports and employment by investing in digital talent, connectivity and technological transformation. With a coordinated strategy, this sector could create up to 60,000 jobs over five years and give more workers access to opportunities in software, professional services and other digitally enabled industries.

Public security is also included because crime is estimated to cost Chile 2.4% of its gross domestic product each year. Reducing that burden could improve daily life, protect businesses and make communities more attractive for investment. Cooperation will extend to regional integration, disaster-risk management, care systems and early-childhood programmes.

Goldfajn marked the visit by opening the IDB Group's new headquarters in Santiago. Located in one of the city's main financial districts, the offices are three times larger than the previous premises and can accommodate a 135% increase in staff compared with 2020, reflecting the institution's deeper commitment to Chile.

Future IDB Invest activity will cover infrastructure, water security, electricity-sector sustainability, entrepreneurship and innovation. The wider agenda is built around turning Chile's existing strengths into funded projects, stronger companies and tangible employment opportunities for communities across the country.