IDB allocated $17.8 billion in 2021. Here’s a breakdown.

Earlier this month, the Inter-American Development Bank and its private-sector arm, IDB Invest, reported $23.4 billion in new financing approvals, commitments, and private sector mobilizations in 2021. Devex dug into the bank’s monthly operational summaries to get an overview of its funding allocation for new projects, focusing on priority sectors, geographies, and top projects. Similar to the World Bank, IDB’s MOS reports compile all the projects that enter the pipeline from the point of identification up to the approval stage. The information, including the bank’s contribution, is still subject to change until the project gets signed. Overall, IDB allocated $17.8 billion for 157 new projects in 2021, a decrease of $4.2 billion — or 19.2% — from the previous year. This dip closely relates to the $3.6 billion decrease in funding for new projects in Brazil. The bank also allocated less for COVID-19 projects — $3.2 billion in 2021 compared to $5.2 billion in the previous year. The bank divides its allocation into 17 thematic sectors. The top three most funded sectors were: • Public sector management. • Finance, management, and administration. • Social services. These sectors accounted for $8.1 billion or 45.5% of the total amount. IDB also divides its funding into 24 countries, with the top three — Brazil, Mexico, and Ecuador — getting $7.5 billion, or 42% of the total allocation. Compared to the previous year, 13 countries received less funding for new projects in 2021. Geographical focus Brazil remains the most funded country, with $3.2 billion for 20 new projects. However, this is $3.6 billion less than the previous year. Mexico remains the second most funded country, with $2.8 billion for seven new projects. The country saw a slight decrease in allocation, worth $210.8 million. Meanwhile, Ecuador climbs 13 notches from the previous year, with $1.5 billion for seven new projects. The country saw the biggest increase among all the countries, worth $1.1 billion. Sectoral priorities Public sector management was the most funded sector, up from last year, when it was the third most funded. It involves strengthening government agencies, improving the use of public resources, and developing better fiscal management. This year $3.8 billion was allocated for 31 new projects. Finance, management, and administration received $2.3 billion for 13 new projects. The projects focused on supporting micro, small and medium enterprises, employment, and the resilience of public finances. Social services received $2.1 billion for 18 projects. This is $3.6 billion less than the previous year — the biggest dip among the sectors. The projects revolve around increasing access to social protection, improving the quality of life, and protecting vulnerable populations such as women and migrants. Top projects Below are the biggest new projects that were added into the IDB’s pipeline in 2021: • $1.2 billion to improve access to basic services, income, and the agriculture sector in rural Brazil. • $1 billion for better access to goods and services among people living in areas with a high degree of social deprivation in several municipalities in Mexico. • $700 million to increase competitiveness and improve the business environment in support of post-pandemic economic recovery in Mexico. • $600 million for the design and implementation of environmentally responsible public policies that will contribute to sustainable growth in Colombia. • $500 million to support vulnerable people affected by COVID-19 in Bolivia. • $500 million for economic recovery and macroeconomic stability in Ecuador. • $500 million to support urban improvement through access to facilities, land tenure, and stronger government capacity in Mexico. • $400 million each to strengthen the resilience of public finance against natural disasters or public health emergencies in El Salvador and Honduras. • $400 million to promote international trade and improve financial stability and access to financing in Ecuador. • $319 million to support the recovery of SMEs in the manufacturing and tourism sectors in Mexico. Janadale Leene Coralde created the charts for this article. Try out Devex Pro Funding today with a free 5-day trial, and explore funding opportunities from over 850+ sources in addition to our analysis and news content.