Brazil is gearing up to reach even greater heights in its industrial journey with the launch of the Brazil’s More Production Plan, an ambitious initiative aimed at boosting the national industrial sector. Under this new industrial policy, known as New Industry Brazil, the Brazilian government will allocate a total of BRL 300 billion in financing until 2026, demonstrating a firm commitment to economic growth and technological innovation.
The management of these resources will be in the hands of the Brazilian Development Bank (BNDES), the Funding Authority for Studies and Projects (Finep), and the Brazilian Company for Research and Industrial Innovation (Embrapii). Of this amount, BRL 271 billion will be made available in the form of reimbursable loans, while BRL 21 billion will be directed towards non-reimbursable financing. Additionally, BRL 8 billion will be provided through capital market resources, further expanding investment opportunities in the sector.
The New Industry Brazil program will utilize public policy instruments such as grants, loans with reduced interest rates, and increased federal investments. This new approach also includes the use of tax incentives and special funds to stimulate various segments of the economy, promoting a more balanced and sustainable development.
Some of these initiatives have already been launched, such as the More Innovation Program (BRL 60 billion), operated by BNDES and Finep, with BRL 40 billion in credit at Referential Rate (TR) +2%. This modality represents the lowest interest rates ever applied for innovation financing in the country.
Within the program, BRL 20 billion has already been allocated to non-reimbursable resources. In this modality, Finep launched 11 public calls, totaling BRL 2.1 billion. There are 10 continuous flow calls for companies and one specific health sector call for institutes of science and technology. The aim of the non-reimbursable resource is for the government to share with companies the costs and risks inherent in research, development, and innovation activities, which generate significant benefits to society.
In summary, the Brazil More Production Plan represents a significant milestone in the country’s industrial history, opening doors to a future of sustainable economic growth and technological innovation. With strategic investments and assertive policies, this initiative provides a great opportunity for Brazilian companies to stand out in an increasingly competitive market.
