JICA invests in Agrolend to Support Agricultural Finance in Brazil

The Japan International Cooperation Agency (JICA) has concluded an investment agreement with AGL Holding (Agrolend), a Brazilian digital bank financing the agricultural sector in the country.

This project aims to contribute to improving the financial access and agricultural operations of small and medium-sized farmers in Brazil, while increasing the productivity of the country’s agricultural supply chain. By investing in Agrolend, a digital bank that finances small and medium-sized Brazilian farmers, the project promotes sound and efficient management of the industries and distributors under Agrolend’s financing programs for small and medium-sized farmers.

Agrolend is a digital bank that finances small and medium-sized farmers. It provides loans to more than 3,700 farmers across the country, mainly soybean and corn farmers, to help them purchase seeds, fertilizers, pesticides, etc. Agrolend contributes to improving the efficiency of assets and liabilities on the books of distributors by providing advance payments to distributors for seeds, seedlings, etc. on behalf of farmers, and providing loans directly to farmers on behalf of distributors. This is an effective business model for improving inefficient agricultural financing via traditional supply chain and it is expected to contribute to improving the productivity of agricultural supply chain, including farmers, industries and distributors.

Contribution to SDGs

• Goal 2 (Zero hunger)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)