IFC and Banco Industrial Launch $105M Package to Empower Brazil’s MSMEs

The initiative aims to increase access to capital for MSMEs nationwide, with a focused commitment to empowering women-led businesses and enterprises operating in Brazil’s Legal Amazon region.

In a significant move to fortify Brazil’s micro, small, and medium-sized enterprise (MSME) ecosystem, the International Finance Corporation (IFC)—a member of the World Bank Group—has partnered with Banco Industrial do Brasil S.A. (BIB) to deliver a $105 million financing package. The initiative aims to increase access to capital for MSMEs nationwide, with a focused commitment to empowering women-led businesses and enterprises operating in Brazil’s Legal Amazon region.

This groundbreaking partnership stands as a critical response to Brazil’s enduring financing gaps, particularly for small businesses that remain excluded from mainstream financial services. By prioritizing inclusive and sustainable economic development, the new funding seeks to amplify the social and environmental impact of financial services across the country.

Targeted Allocation to Maximize Impact

The financial package will be strategically deployed to ensure maximum inclusivity:

• 30% of the funds will be dedicated to women-led small and medium-sized enterprises, providing crucial support to female entrepreneurs who often face higher barriers to capital access.

• 10% of the package will support SMEs located in the Brazilian Legal Amazon—a region historically underserved and vulnerable to economic marginalization.

• 40% will go toward expanding general credit to SMEs across Brazil, helping businesses that form the backbone of local economies gain essential working capital and growth funding.

• The remaining 20% will fund payroll loans within the Legal Amazon region, including credit solutions for microentrepreneurs and undocumented enterprises operating outside the formal economy.

This distribution underscores the project’s intention to not only bridge financing gaps but also enhance socioeconomic equity in regions that need it most.

Supporting Women Entrepreneurs and the Amazon

The initiative comes at a crucial time. Despite MSMEs representing 98.5% of all businesses in Brazil and contributing 27% to the country’s GDP, many remain constrained by systemic barriers such as limited credit options, high interest rates, and a complex tax landscape. These challenges are even more pronounced for women-led businesses and those situated in the Amazon basin.

IFC’s involvement highlights the importance of long-term, sustainable investment strategies. “This investment with Banco Industrial reflects IFC's significant commitment to inclusive financing and sustainable growth in Brazil,” said Manuel Reyes Retana, IFC's Regional Director for South America. “By channeling long-term financing to women-led businesses and small and medium-sized enterprises in the Amazon, IFC is helping to create jobs, especially for underserved populations, and build a more resilient and equitable economy across Brazil.”

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Banco Industrial’s Commitment to ESG and Inclusive Growth

The operation has been positively received by both investors and stakeholders. Guilherme Cardoso Gottardi, CFO of Banco Industrial do Brasil, expressed satisfaction with the outcome, stating, “We are very pleased with the success of the operation and the significant demand registered, which reinforces investor confidence in BIB and highlights the growing interest in operations aligned with the ESG agenda.”

Gottardi emphasized that the funds will play a vital role in furthering BIB’s mission to support clients engaged in sustainable business practices and to amplify the bank’s overall positive social impact.

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Part of a Global MSME Initiative

This financing marks IFC’s first investment in Brazil under its MSME Finance Platform, a global initiative launched in 2024. With a total capacity of up to $4 billion, the platform is designed to motivate financial institutions to extend much-needed resources to MSMEs in emerging markets, especially those owned by women. By facilitating such partnerships, the platform aims to foster inclusive financial ecosystems worldwide.

Brazil’s participation in this program reflects both the country’s urgent need for MSME support and its strategic importance in advancing gender equality and sustainable regional development.

A Step Toward Sustainable Prosperity

The IFC-BIB financing package is more than just a capital infusion; it is a targeted intervention aimed at correcting long-standing inequities in Brazil’s financial landscape. By addressing the specific challenges of women entrepreneurs and Amazon-based SMEs, the initiative promotes not only business growth but also social inclusion and environmental resilience.

As Brazil continues to grapple with economic volatility and social disparity, such initiatives represent a beacon of forward-looking, inclusive development that aligns local business growth with global sustainability goals.