Almost $US4 billion has been pledged by private companies to support communities in Central America as part of US President Joe Biden’s effort to reduce numbers of migrants fleeing toward the US border.

Ten companies, including Nestle, Target and Columbia Sportswear, have said they would collectively spend $950 million on projects in Guatemala, Honduras and El Salvador to support farmers, create textile jobs and invest in telecommunications and other industries.

The effort comes as crossings at the US-Mexico border remain at record highs, posing logistical and humanitarian challenges to the Biden’s administration and drawing intense criticism from Republicans on Capitol Hill.

Republicans in Congress have begun to investigate the administration’s efforts at the border and said they may seek to impeach Alejandro Mayorkas, the homeland security secretary.

Vice President Kamala Harris announced the move this month.

Kamala Harris

It follows commitments from businesses through the Partnership for Central America, a not-for-profit organisation that was created in 2021 to facilitate Ms Harris’ efforts to rally support for the region.

The partnership has previously announced spending from a range of companies.

The idea, according to the vice president’s office, is to address what she calls the root causes of migration: poverty, corruption, climate change and political instability that drives people to leave their homes in search of a better life.

Administration officials said the program had already generated results with migration from the three countries was down 71 per cent.

“As part of this public-private partnership, approximately 47 companies and organisations are collaborating across financial services, textiles and apparel, agriculture, technology, telecommunications and not-for-profit sectors to strengthen the region’s economic security,” the White House said a statement.

But observers say there are challenges to its success, especially in the short term.

Ajay Banga, the former executive chairman of MasterCard, one of the business executives who worked with Ms Harris on the effort said it was unlikely to make a difference in the short term.

“If anyone speaking to you is declaring victory, they’re crazy. There’s work. There’s real work there. The money is interesting, but it is not implemented yet,” he said.

 “Then this can make a difference over five or 10 years,” Mr Banga said.

Others have said that private investment was not enough as the US competes with other countries, especially China, for investment in the region.

The corporates say they will also need infrastructure to support their investments — roads, internet and power — and a total scale of spending by other similar companies.

The Biden administration has said it will announce a program aimed at increasing investment in infrastructure in the region.

The program aims to help companies gain access to funding from the US International Development Finance Corporation and will create a Northern Central America Investment Facilitation Team intended to promote economic development.