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Home / DFI Index / DFI Transparency Index 2023 / CAF – non-sovereign
DFI

DFI Transparency Index 2023

CAF – non-sovereign

Score:
8.4
Position:
20 / 21

Overview

The Development Bank of Latin America (CAF), is a development finance institution that finances development projects and promotes a sustainable development model in Latin America and the Caribbean through credit operations, non-reimbursable resources, and technical assistance. CAF was established in 1970 and currently has 17 members. Its non-sovereign portfolio finances development projects in the private sector.

Analysis

CAF came second-last in the non-sovereign assessment with a score of 8.4 out of 100. It came in the bottom two for all components. We were unable to identify non-sovereign operations for CAF, despite evidence that they exist. This resulted in CAF failing all project-level indicators. 

CAF came second-last in the Core Information component with a score of 1.5 out of 30. It only scored points in two organisation-level indicators, disclosure/access to information policy and annual report. 

CAF came joint second-last in the Impact Management component with a score of 2.5 out of 25. It only received points for the impact measurement approach indicator by indicating which impact standards/initiatives it is aligned to and its approach to determining additionality. 

CAF also came joint second-last in the ESG and Accountability to Communities component with a score of 3.67 out of 30. It failed the majority of organisation-level questions, only receiving points for its E&S global disclosure policy and E&S community disclosure policy. 

CAF came joint last in the Financial Information component, scoring 0.75 out of 15. It only scored for the financial reports/statements indicator. 

CAF did not score any points in the Financial Intermediary Sub-investments component, coming joint last with four other non-sovereign DFIs. 

Core Information 1.5 / 20
Impact Management 2.5 / 25
ESG & Accountability to Communities 3.67 / 30
Financial Information 0.75 / 15
Financial Intermediary Sub-investments 0 / 10

Recommendations

  • CAF should publish its non-sovereign activities to its investment database and mark it accordingly so it is clear for stakeholders. 
  • CAF is planning to disclose an access to information policy in 2023, it should develop it in line with industry best practices and the DFI Transparency Tool. 
  • It should ensure that its data portal that it is redeveloping passes the accessibility indicator for by disclosing detailed disaggregated data, publishing data under an open licence, and providing a free, bulk export of data. 
  • CAF should become an IATI publisher and disclose all investments to the IATI Standard. 
  • It should provide more organisation-level information for Impact Management, including its impact management approach, sector/country strategies, and evaluations. 
  • It should develop an early disclosure policy covering, at a minimum, high risk projects and disclose investments in line with the policy. 
  • It should create an independent accountability mechanism (IAM) and have a policy to disclose it to communities. It should also have a policy for project grievance mechanisms (PGMs) to be disclosed to communities. 
Core Information 1.5 / 20
Impact Management 2.5 / 25
ESG & Accountability to Communities 3.67 / 30
Financial Information 0.75 / 15
Financial Intermediary Sub-investments 0 / 10

Deep Dive

Core Information

1.5 / 20
20 / 21
About component

The basic information that describes a DFI’s organisational policies and investments. This type of information is typically found in key organisation documents and represents the first tier of project information, typically disclosed on project web pages or in files available for bulk download. At the organisation level this includes access to information policies and annual reports. At the project level, this includes project titles, locations, and key dates.

Disclosure / access to information policy

Score: 0.75 out of 3

Accessibility

Score: 0 out of 2

Annual reports

Score: 0.75 out of 1

Project identification

Score: 0 out of 1

Status

Score: 0 out of 1

Project description

Score: 0 out of 1

Location

Score: 0 out of 1

Domicile (non-sovereign only)

Score: 0 out of 1

Sovereign / non-sovereign

Score: 0 out of 1

Sector

Score: 0 out of 1

Investment instrument

Score: 0 out of 1

Project costs

Score: 0 out of 1

Funding source

Score: 0 out of 1

Client

Score: 0 out of 1

Contacts

Score: 0 out of 1

E&S risk category

Score: 0 out of 1

Progress dates

Score: 0 out of 1

Impact Management

2.5 / 25
20 / 21
About component

The ways in which a DFI predicts, measures, and evaluates the impacts of their investments. At the organisation level, this includes an impact measurement approach. At the project level, this includes activity indicators/metrics and results.

Impact measurement approach

Score: 2.5 out of 5

Sector / country strategy

Score: 0 out of 3

Evaluations

Score: 0 out of 3

Additionality statement (non-sovereign only)

Score: 0 out of 2

Activity indicators / metrics

Score: 0 out of 6

Results

Score: 0 out of 6

ESG & Accountability to Communities

3.67 / 30
19 / 21
About component

The ways in which a DFI predicts, mitigates, and communicates the ESG aspects of their activities. At the organisation level this includes E&S global disclosure policy and E&S community disclosure policy. At the project level this includes E&S plans and assessments, and assurance of community disclosure.

E&S global disclosure policy

Score: 1.67 out of 5

E&S community disclosure policy

Score: 2 out of 4

IAM global disclosure documentation

Score: 0 out of 2

IAM community disclosure policy

Score: 0 out of 2

PGM community disclosure policy

Score: 0 out of 2

Summary of E&S risks

Score: 0 out of 2

E&S project plans / assessments

Score: 0 out of 4

Assurance of E&S community disclosure

Score: 0 out of 2

Beneficial ownership (non-sovereign only)

Score: 0 out of 2

IAM global disclosure

Score: 0 out of 1

Assurance of IAM community disclosure

Score: 0 out of 2

Assurance of PGM community disclosure

Score: 0 out of 2

Financial Information

0.75 / 15
19 / 21
About component

This information provides details on the financial performance of DFIs and the structuring of investments. At the organisation level, this includes audited financial reports. At the project level, this includes currency of investment, mobilisation, and concessionality

Financial reports / statements

Score: 0.75 out of 1

Repeat investment

Score: 0 out of 1

Currency of investment

Score: 0 out of 1

Co-financing

Score: 0 out of 3

Concessionality (non-sovereign only)

Score: 0 out of 3

Mobilisation (non-sovereign only)

Score: 0 out of 3

Instrument-specific disclosure

Score: 0 out of 3

Financial Intermediary Sub-investments

0 / 10
20 / 21
About component

This information relates to the ways in which investments in FIs are used. At the organisation level, this includes FI sub-investment policy. At the project level, this includes private equity fund sub-investments and FI (bank) sub-investments.

FI sub-investment policy

Score: 0 out of 3.75

Private equity fund sub-investments

Score: 0 out of 2.5

FI (bank) use of funds

Score: 0 out of 1.25

FI (bank) sub-investments

Score: 0 out of 2.5