By Brazil Stock Guide – Brazil’s federal government is rolling out a subsidized credit program for delivery riders, app-based motorcycle drivers and formal motorcycle workers, seeking to renew part of the country’s urban transport fleet while encouraging lower-emission vehicles.
The initiative, called Move Brasil Entregadores e Motoapp, was detailed in a government presentation and targets professionals who transport passengers, goods or cargo through digital platforms or under formal labor contracts. The credit line will finance motorcycles, mopeds, scooters, electric bicycles and other eligible light vehicles.
The program is designed to increase productivity, support fleet replacement and promote decarbonization in urban transport. It applies to workers registered on platforms such as 99, controlled by DiDi Global Inc. (OTC: DIDIY), Uber Technologies Inc. (NYSE: UBER), iFood, owned by Prosus NV (AMS: PRX), Keeta, the international brand linked to Meituan (HKG: 3690), and Lalamove, which is privately held.
To qualify, app-based workers must have been registered on a platform for at least six months and completed at least 100 rides or deliveries. Formal motorcycle workers must prove at least six months in the role under Brazil’s CLT labor regime. Participants will also need a category A driver’s license, which is required for motorcycles.
Each eligible worker may finance one vehicle. The list of eligible assets includes flex-fuel mopeds, scooters and motorcycles produced in Brazil, as well as electric bicycles, electric mopeds, electric scooters and electric motorcycles made domestically or tied to an investment project for local production. Credit life insurance may also be included in the financing.
Financial terms include an annual interest rate of 12.5% for men, equivalent to 0.99% per month, and 11.5% for women, equivalent to 0.91% per month. The repayment term will be 48 months, with a two-month grace period. In a government simulation for a 21,000-real loan, the monthly installment would be 552 reais.
The government plans to use the FGO credit guarantee fund to reduce lending risk. According to the presentation, the guarantee would cover 50% of the portfolio and 100% of each operation.
Vehicle specifications will be capped by category. Flex-fuel motorcycles may have engines of up to 160cc. Electric bicycles and self-propelled vehicles may have power of up to 1,000 watts, while electric motorcycles, scooters and mopeds may reach up to 7,500 watts.
Funding will come from the Social Infrastructure Investment Fund, known as FIIS. Workers will enroll through an online portal and authorize data sharing for eligibility checks. Digital platforms will provide information on eligible professionals, while data on formal motorcycle workers will also be shared for analysis.
Credit applications will be assessed by financial agents including Caixa Econômica Federal and Banco do Brasil, as well as other accredited institutions. Automakers are expected to provide discounts as part of the program’s counterpart measures.
Move Brasil also includes a corporate credit line for companies investing in battery-swap infrastructure and charging systems for electric motorcycles. Eligible items include batteries, battery-swap stations and associated working capital, capped at 30% of investment value.
For companies, the interest rate is set at 12.5%, with a 48-month term, a two-month grace period and a financing limit of 70 million reais.
The government’s timetable indicates that the provisional measure, decree and FIIS resolution are scheduled for Friday, June 12, the same date set for the launch of the registration portal. Loan contracts are expected to start on July 13.
The registration portal listed in the presentation is gov.br/movebrasil. Workers will access the system through a gov.br account, identify themselves with CPF and password, choose their platform or CLT motorcycle-worker category, and accept the consent and privacy terms before submitting the request.
Leave a Reply