The International Finance Corporation (IFC), part of the World Bank Group, is investing up to $250 million in Sicredi, a nationwide cooperative financial institution in Brazil, to expand access to finance for micro and small enterprises (MSEs), with a particular focus on women-led businesses and underserved communities in the Legal Amazon. This financing package includes an initial $100 million loan from IFC’s own account, which may increase to $150 million, complemented by up to $100 million mobilized from international investors, reaching a total of $250 million. Approximately 80% of these resources will target women-led MSEs across Brazil, while 20% will be allocated to enterprises operating in the Legal Amazon, a region where credit access is significantly below the national average.
In addition to financing, IFC will provide advisory services to Sicredi to develop a gender-focused business model tailored to the unique needs of the Amazon region. The initiative aims to foster inclusive and sustainable economic growth by addressing the significant financing gaps faced by MSEs, particularly those led by women. Although MSEs account for 95% of all businesses in Brazil and generate 40% of new jobs annually, they receive only 15.5% of available credit. Women-owned MSEs face even greater barriers, with just 2.6% accessing formal loans compared to 4.6% of male-led enterprises, leaving an estimated $15.8 billion financing gap that limits their economic potential.
Manuel Reyes Retana, IFC’s Director for South America, emphasized that the initiative reinforces IFC’s commitment to inclusive development and sustainable finance. The partnership with Sicredi, one of Brazil’s largest cooperative financial networks, advances IFC’s strategic objectives in the country by expanding access to finance, supporting job creation, reducing regional inequalities, and unlocking the economic potential of underserved communities.
Alexandre Barbosa, Sicredi’s Executive Director for Sustainability, Administration, and Finance, highlighted that the collaboration with IFC strengthens the cooperative’s mission to expand credit access for women-led and underserved MSEs. Beyond financing, the initiative aims to generate broader economic impact by stimulating local economic activity and advancing sustainable and inclusive development across Brazil.
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