JICA has signed an investment agreement with Agrolend, a Brazilian digital bank, to enhance financial access for small and medium-sized farmers, thereby improving agricultural efficiency and productivity.

Target Information

AGL Holding, known as Agrolend, is a digital bank focused on the agricultural sector in Brazil. It primarily serves small and medium-sized farmers across the nation, providing loans for the purchase of essential agricultural inputs such as seeds, fertilizers, and pesticides. Agrolend's innovative business model directly supports around 3,700 farmers, facilitating prepayments to wholesalers for farming supplies and improving financial access for agricultural producers.

Industry Overview in Brazil

Brazil's agricultural sector is one of the most significant in the world, playing a crucial role in the country's economy. With a diverse range of crops, including soybeans and corn, Brazilian agriculture has seen substantial growth due to advancements in technology and financial services. However, small and medium-sized farmers often face challenges in accessing traditional financial services, which can limit their operational efficiencies and growth potential.

The increasing need for innovative financial solutions in the agricultural sector has led to the rise of digital banks like Agrolend. By utilizing technology to streamline lending processes, these banks aim to enh