In a remarkable display of commitment to Brazil's economic and environmental well-being, the International Finance Corporation (IFC) has achieved a historic milestone, investing a staggering $7.3 billion in the country during the fiscal year ended June 30, 2024. This unprecedented level of funding is not only a testament to IFC's confidence in Brazil's potential but also a strategic move to address the pressing challenges of climate change, gender inequality, and social financing gaps that have long plagued the nation.

Powering Brazil's Sustainable Growth

Driving Climate-Conscious Initiatives

IFC's commitment to Brazil's sustainable future is evident in its strategic allocation of resources. In the fiscal year 2024, the organization dedicated a remarkable 50% of its own-account investments, approximately $775 million, to projects that incorporate solutions for climate change mitigation or adaptation. This includes investments in the water, sanitation, and waste management sectors, as well as support for reforestation efforts in the Cerrado biome and the expansion of renewable thermal energy solutions through projects like the one with ComBio.

Empowering Small and Medium Enterprises

Recognizing the vital role of small and medium enterprises (SMEs) in Brazil's economic landscape, IFC channeled 41% of its long-term financing from its own account to support these businesses. This strategic focus on SMEs extends beyond mere financial support, as IFC also worked closely with institutions like Banco Santander and Bradesco to improve access to finance for micro, small, and medium enterprises in underserved regions of the country, with a particular emphasis on women entrepreneurs and companies from the North and Northeast.

Fostering Inclusive Growth

Inclusion and gender equality have been at the forefront of IFC's efforts in Brazil. Approximately $1.2 billion of the organization's long-term financing, including own-account and mobilization, was allocated to projects with a gender component. IFC's advisory services have also played a crucial role, as evidenced by its work with Omni and Finsol to develop a value proposition aimed at women microentrepreneurs and drivers in Brazil.

Expanding Sustainable Finance and Capital Markets

IFC's strategic vision for Brazil extends beyond individual projects and initiatives. The organization has recently endorsed a new Country Partnership Framework with the World Bank Group, which will guide their joint efforts from 2024 to 2028. This framework emphasizes the mobilization of private capital, the expansion of sustainable finance, and the further development of capital markets, all with a focus on sectors essential for inclusive growth and Brazil's climate adaptation and mitigation strategy. IFC is poised to exceed $5 billion in new commitments per year in Brazil, including its own resources and mobilization, as it continues to drive the country's sustainable development.

Leveraging Global Expertise for Local Impact

IFC's commitment to Brazil extends beyond mere financial investments. The organization has also leveraged its global expertise to enhance sustainability in the region. This includes the launch of the Amazon Finance Network with IDB Invest, which promotes sustainable economic growth across the Amazon region and currently boasts the participation of 47 financial institutions. Additionally, IFC has introduced its Biodiversity Finance Reference Guide in Portuguese, empowering Brazil to tap into its immense potential for biodiversity finance and nature-based solutions.As IFC's investment portfolio in Brazil reaches a staggering $7.7 billion, the organization's impact on the country's economic and environmental landscape is undeniable. With a steadfast focus on climate action, gender equality, and inclusive growth, IFC is poised to continue its transformative journey, cementing Brazil's position as a global leader in sustainable development.