By Brazil Stock Guide – The Brazilian Development Bank (BNDES) approved R$ 160.8 billion in funding for Brazil’s agriculture sector from January 2023 onwards, marking a 65.3% increase compared to the previous four years. This financing will support a range of agricultural initiatives, including investments in biocombustibles, agricultural equipment, and technology, such as machinery and innovation in farming practices.
Aloizio Mercadante, president of BNDES, emphasized that the bank expanded its credit lines across all areas. “We have increased funding for the sector in every area. One of the highlights is the biocombustible production. R$ 13.5 billion were approved for 48 ethanol projects, which is 217% higher than the R$ 4.3 billion approved between 2019 and 2022,” Mercadante said in a statement.
The approval also marks the largest budget in the history of Brazil’s Safra Plan for 2025/2026, totaling R$ 70 billion. The funding reaches 93% of Brazil’s municipalities, reinforcing the country’s agricultural capacity. Of the total amount, R$ 19 billion was allocated to improve agro-industrial capacity, including increasing biocombustible production, enhancing storage capacities for agricultural products, and supporting research and innovation in the sector.
This funding surge reflects BNDES’s pivotal role in fostering growth in Brazil’s agricultural sector, with particular emphasis on sustainable energy sources like ethanol, crucial for the country’s long-term economic development.
Leave a Reply