CABEI Mission to Strengthen Cooperation Ties with the Republic of China (Taiwan)

October 16, 2024-Taipei, Taiwan.The Central American Bank for Economic Integration (CABEI) successfully concluded a high-level mission to the Republic of China (Taiwan), led by Vice President Mr. Jaime Díaz, from October 8 to 11-the mission aimed to deepen cooperation ties and enhance economic collaboration between Taiwan and Central America. Key participants in the mission also included the Director for Guatemala in CABEI, Mr. Mario Alfredo Jacobs, who participated in a series of high-profile meetings.

Taiwan's strengths in driving innovation, in developing resilient infrastructure, delivering a strong response during crisis, driving digital transformation and in leading the climate change agenda position it as a leader in economic growth and environmental sustainability. The visit explored potential collaborations in development policy support for sustainable development, promoting growth and foreign investment in the region, and strategic investment projects in member countries, offering a promising outlook for the future.

During the mission, the CABEI delegation met with Taiwan's Ministry of Finance (MOF), Central Bank, and Ministry of Foreign Affairs (MOFA) to strengthen the links of cooperation and work for the development of Central America. Also, they met with the International Cooperation and Development Fund (TaiwanICDF) to discuss enhancing financial cooperation and exploring potential projects for the region's sustainable growth. The delegation also visited the Overseas Investment & Development Corporation (OiDC) and the Central America Trade Office (CATO), to discuss industry opportunities and Taiwanese investment in critical sectors such as infrastructure, transportation, sustainable tourism, waste management and health. Likewise, they engaged with the financial sector, including the Export-Import Bank of the Republic of China (Eximbank) and MEGA International Commercial Bank (MEGA ICBC) to explore financing opportunities, focusing on potential collaborations for projects aligned with our Environmental, Social, and Governance (ESG) framework.

Taiwan's knowledge and policy development support is one of its strengths, and the mission also included meetings with several prominent institutions leaders in digital transformation, nearshoring, and promoting sustainable development, such as the Taiwan Institute for Sustainable Energy (TAISE), Institute for Information Industry (III), and Industrial Technology Research Institute (ITRI). The discussions centered on Taiwan's sustainability initiatives and their strong alignment with Central America's goals in climate change, net zero path policy, technology sharing, supply chain relocation, carbon credit market, and energy efficiency, providing a solid foundation for future collaboration.

CABEI's Vice-President, Jaime Diaz emphasized, "Taiwan has been a key partner in driving forward CABEI's agenda for regional development. This mission will further deepen our collaboration, especially in critical areas such as sustainable energy and infrastructure, which are vital for the region's future growth." Likewise, Mario Alfredo Jacobs, Director for Guatemala at CABEI, stated, "Taiwan is a valuable partner for both CABEI and the region. There is much we can do to enhance our cooperation and bring new technology and investment from Taiwan to the region."

This mission was essential in CABEI's efforts to promote sustainable economic development in the region through strategic partnerships with Taiwan. It followed a series of successful collaborations in recent years, including Taiwan's participation in syndicated loans and green bond initiatives that supported Central America's socio-economic growth. CABEI had placed 26 bond issuances in the Taiwanese capital market, raising a total of US$3.2 billion. This solid financial activity positioned Taiwan as one of CABEI's most relevant sources for bond issuances in global capital markets.

CABEI and Taiwan have a longstanding history of cooperation that has significantly contributed to the region's development. As a non-regional member since 1992 and its largest shareholder, Taiwan has played a vital role in financing various initiatives. To date, US$238.8million has been allocated to finance development initiatives towards supporting the MSME sector, providing support to health systems, enhancing education and training, reducing poverty, and promoting infrastructure development. In addition, Taiwan is willing to share its knowledge and experience, through the Taiwan-CABEI Partnership Trust Fund (TCPT), to support CABEI's objectives to promote economic integration and balanced economic and social development in the region.