CAF Signs $450,000 Technical Cooperation for Ecuador's National Competitiveness Strategy as II International Economic Forum Launches

CAF Commits to Ecuador's Competitiveness Agenda

CAF (Development Bank of Latin America and the Caribbean) has signed a $450,000 non-reimbursable technical cooperation agreement with Ecuador to support the design and implementation of a national competitiveness strategy targeting the country's productive sector. The agreement was formalized at a high-level event in Quito marking the launch of the II International Economic Forum 2026 and the Latin America and Caribbean Business Roundtable.

Agreement details

Element	Details
Funding	$450,000 non-reimbursable (grant)
Purpose	Design comprehensive national competitiveness policy
Scope	Productive sector strategy, regulatory framework, institutional capacity
Duration	18 months
Signatories	CAF + Ecuador's Ministry of Economy and Finance
Implementing agencies	Ministry of Production (MPCEIP), Ministry of Economy

What the competitiveness strategy covers

The technical cooperation will fund the development of a policy framework addressing five pillars of Ecuador's productive competitiveness:

1. Trade facilitation and logistics

• Customs modernization and processing time reduction
• Port and airport efficiency benchmarking
• Single-window integration for export documentation

2. Innovation and technology adoption

• R&D incentive framework for private sector
• Technology transfer mechanisms for SMEs
• Digital transformation roadmap for key export sectors

3. Regulatory simplification

• Business registration and licensing reform
• Sector-specific regulatory review (mining, energy, agriculture)
• Environmental permitting streamlining

4. Human capital development

• Skills gap analysis across priority sectors
• Technical education alignment with industry needs
• Labor market flexibility reforms

5. Access to finance

• SME credit guarantee mechanisms
• Capital market deepening initiatives
• Green and sustainable finance frameworks

CAF's broader Ecuador portfolio

The $450,000 cooperation agreement sits within CAF's substantial Ecuador investment portfolio:

Metric	Value
Total CAF lending to Ecuador	~$4.5B (outstanding)
2025 approvals	~$850M
Active projects	~35
Key sectors	Infrastructure, energy, water/sanitation, urban development
Technical cooperation (cumulative)	~$25M in non-reimbursable grants

CAF has been one of Ecuador's most consistent multilateral partners, maintaining lending levels even during periods when IMF or World Bank engagement was politically complicated under previous administrations.

II International Economic Forum 2026

The forum launch brought together government officials, multilateral institutions, and private sector leaders to discuss Ecuador's economic integration strategy. Key attendees included:

• Sariha Moya — Economy and Finance Minister
• Luis Alberto Jaramillo — Production, Foreign Trade, and Investment Minister
• CAF senior leadership — Country office and technical teams
• Private sector representatives — from Ecuador's chambers of commerce and industry associations

Minister Jaramillo emphasized that the competitiveness strategy would complement the recently concluded US-Ecuador trade agreement by ensuring Ecuador's productive capacity can meet the expanded market access. He stated that Ecuador must "move beyond commodity dependence toward value-added exports" to fully capitalize on the trade deal.

Latin America and Caribbean Business Roundtable

The Business Roundtable initiative — also launched at the event — creates a structured dialogue platform between CAF and private sector leaders across the region. For Ecuador, this provides:

• Direct access to CAF financing teams for project development
• Peer exchange with business leaders from other CAF member countries
• Pipeline visibility for upcoming infrastructure and energy procurement
• Input channel for regulatory reform recommendations

What to watch

Track the competitiveness strategy's draft timeline — the 18-month window means initial policy recommendations could emerge by mid-2027, shaping the regulatory environment for the next presidential term. Monitor whether the strategy produces actionable regulatory reforms or remains aspirational. Watch for CAF lending approvals in 2026 that build on the competitiveness framework — particularly in energy, trade facilitation, and SME finance. Track whether MPCEIP integrates the competitiveness strategy recommendations into the trade agreement implementation roadmap.

Sources: CAF, El Comercio, MPCEIP