IFAD Expands Brazil Investment to $1.1bn, Targeting One Million Rural People

IFAD’s portfolio in Brazil now ranks fifth globally among the Fund’s investments and represents the highest number of IFAD-financed projects in any single country.

The International Fund for Agricultural Development (IFAD) has announced a major expansion of its investments in Brazil, more than doubling its rural development financing to over $1.1 billion through 2030 in one of the Fund’s largest country portfolios worldwide.

The new investment programme, aimed at supporting an estimated one million rural people, marks a significant scaling-up of IFAD’s long-standing strategic partnership with Brazil.

The announcement was made by Rocío Medina Bolívar, IFAD’s Regional Director for Latin America and the Caribbean, during a high-level visit to Brazil involving meetings with government authorities and public and private sector representatives.

Brazil Becomes One of IFAD’s Top Global Investment Destinations

IFAD’s portfolio in Brazil now ranks fifth globally among the Fund’s investments and represents the highest number of IFAD-financed projects in any single country.

The Fund’s investments have increased from $450 million between 2017 and 2024 to more than $1.1 billion for the new project pipeline running through 2030.

“Brazil accounts for 40 per cent of our financing in Latin America and the Caribbean – a clear sign of its role as a strategic partner in driving rural transformation in the region,” Medina Bolívar said.

“By working together with the public and private sectors, and financing partners, we are investing in rural communities at scale to deliver impact across the country.”

Unique Presence: Two IFAD Offices in Brazil

Brazil is the only country in the world hosting two IFAD offices, reflecting the scale and complexity of the Fund’s operations.

In addition to its long-established office in Brasília, IFAD has inaugurated a new office in Salvador, Bahia, focused on supervising operations and developing the rural development project pipeline.

Mobilising Partners and Leveraging Finance

IFAD contributes around 15 percent of the total financing for its projects in Brazil, catalysing significant co-investment from national and international partners.

“We mobilize investments from organizations such as the Green Climate Fund, the Inter-American Development Bank, the Spanish Agency for International Development Cooperation, the German government, and the Brazilian Development Bank (BNDES),” said Donal Brown, IFAD’s Associate Vice-President of Operations.

This blended financing model enables IFAD to scale impact while leveraging strong national government co-financing.

Northeast Region at the Core of IFAD’s Rural Poverty Focus

With Brazil’s highest poverty rates concentrated in the Northeast, the region remains the central focus of IFAD’s investment strategy.

The Fund currently finances eight projects in the Northeast, including its newest initiative:

• Dom Hélder Câmara III – Food Security, Nutrition and Climate Resilience in the Semi-Arid Northeast

Implemented with Brazil’s Ministry of Agrarian Development and Family Farming (MDA), the project builds on earlier phases that achieved a 90 percent reduction in extreme poverty among participating households.

Expanding Private Sector Engagement

In a landmark move, IFAD has approved its first direct loan to a private sector actor in Brazil through the credit cooperative CRESOL — only the second such operation in the Latin America and Caribbean region.

The step signals IFAD’s growing interest in working more closely with private-sector partners to unlock rural finance and accelerate inclusive agricultural growth.

A Benchmark Model for Rural Prosperity

IFAD officials say Brazil’s high-performing portfolio is increasingly seen as a global benchmark for rural development in upper middle-income economies.

“IFAD is consolidating its portfolio in Brazil and adopting a programmatic approach, with top performance and high financial leverage,” said Arnoud Hameleers, IFAD Country Director in Brazil.

“It provides a potential model for building rural prosperity in other countries around the world.”

Policy Dialogue and South-South Cooperation

Beyond project investments, IFAD is supporting Brazil’s leadership in global policy initiatives, including the Global Alliance Against Hunger and Poverty launched during Brazil’s G20 Presidency.

IFAD’s Regional South-South Triangular Cooperation Centre, based in Brasília, has also facilitated knowledge exchanges with countries such as Angola, Pakistan and Mozambique on:

• Land access

• Market integration

• Gender equity

• Youth employment

• Water security

• Rural public policy frameworks

The expanded investment programme underscores IFAD’s commitment to supporting Brazil’s rural transformation agenda while strengthening food security, resilience and inclusive prosperity across the region.