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Published on 23/09/2026
Paraguay opens a new front for industrialization with US$ 100 million in credit
New program provides for financing of up to US$ 2.5 million per company, a 15-year term and a guarantee fund
Paraguay has taken another step in its strategy to expand industrialization and attract new investments. In September, the Government announced the Paraguay Industrial Program, a credit line initially structured with US$ 100 million to finance industrial projects, accompanied by the creation of the Fondo de Garantía para la Industria (FOGAIN).
The announcement was made on September 16, during the celebration of the 90th anniversary of the Unión Industrial Paraguaya (UIP), with the participation of President Santiago Peña, Minister of Industry and Commerce Marco Riquelme, as well as authorities and representatives of the private sector.
The initiative seeks to address one of the main challenges for industrial investments: the need for long-term capital compatible with the implementation, maturation and return period of an industry.
The announced conditions are noteworthy: financing of up to US$ 2.5 million per beneficiary, a term of up to 15 years, a grace period of up to three years and final rates of 8.5% per year in dollars and 10.5% per year in guaraníes.
The funds may finance the construction and expansion of industrial plants, infrastructure, machinery and equipment, the incorporation of technology, the modernization of processes and the increase of production capacity. The possibility of financing working capital associated with the investment is also foreseen, within the limits established by the program.
A new stage for Paraguayan industry
During the launch, President Santiago Peña linked the new tools to the process of transforming the country's productive structure. “Paraguay se encuentra ante una nueva etapa de transformación productiva”, said Peña, highlighting the diversification of the economy and the advances in the country's industrial and export capacity.
In another statement, the president summarized the scenario the Government intends to present to investors: “Hoy la mesa está servida”, said Peña, citing factors such as clean energy, economic stability, investment grade, long-term financing, access to major international markets and Paraguay's strategic geographic position.
The new credit line is part of a broader set of measures presented by the Government. In addition to Paraguay Industrial, FOGAIN was announced and a project to modernize the institutional structure of the Ministerio de Industria y Comercio was presented.
For Minister Marco Riquelme, the financing issue is one of the necessary pieces to advance industrialization. “Este crédito no solamente va a dar una solución a las industrias que quieran invertir, sino también va a poner a prueba al sector financiero”, said the minister when presenting the initiative.
According to the MIC, the US$ 100 million were structured jointly with the Agencia Financiera de Desarrollo (AFD), Banco Nacional de Fomento (BNF) and Ministerio de Economía y Finanzas (MEF).
Credit does not mean automatic approval
Despite the attractive conditions, there is an important difference between the availability of a financing line and the effective approval of funds for a given venture.
Paraguay Industrial will be operationalized through Instituciones Financieras Intermediarias (IFIs) authorized by the AFD, including banks, finance companies and cooperatives.
It is these institutions that will carry out the analysis of each operation. The Ministerio de Industria y Comercio, in turn, will take part in verifying the eligibility of projects according to the program's criteria.
This means that the interested business owner will need to present more than an intention to invest. The project must demonstrate its industrial, economic and financial consistency, as well as its payment capacity, eligibility of the activity and other conditions required by the financial institution.
FOGAIN seeks to address the collateral problem
Another relevant element is the creation of the Fondo de Garantía para la Industria – FOGAIN.
The mechanism was announced to support industrial projects that meet financing conditions but require complementary guarantees to make the operation viable.
The use of the fund is expected to be optional and will depend on the characteristics and needs of each financing operation.
The combination of long-term credit with a guarantee mechanism represents an attempt to address two traditional bottlenecks of industrial projects: term and collateral.
The challenge now is to turn opportunities into projects
For Brazilian business owner and international advisor Jonathan Roger Linzmeyer, who follows internationalization and industrial implementation projects in Paraguay, the new credit line expands the available alternatives but reinforces the need for planning before deciding to invest.
“Financing is an important tool, but it does not replace the viability of the business. Before discussing how much a company can raise, we need to understand whether the industrial project is sustainable, where it should be installed, what its cost structure will be, where the raw material will come from, which markets it will sell to and what its cash generation capacity will be.”
In Linzmeyer's assessment, the moment requires investors to differentiate financial opportunity from business viability. “A project should not be created because credit is available. First we need to build a viable project. Then we analyze which financial, tax, logistical and institutional instruments can help make it even more competitive.”
This process becomes especially relevant for Brazilian companies studying the possibility of installing part of their production in Paraguay. In addition to the financial analysis, an industrial decision may involve issues related to location, energy, labor, raw materials, logistics, suppliers, the domestic market, exports, tax structure and specific regimes, such as Maquila.
Feasibility study becomes even more important
With the creation of new financing tools, the Industrial and Logistical Feasibility Study also takes on an important role in preparing projects that may in the future seek funds.
The analysis should consider different scenarios before implementation: required investment, CAPEX, operating costs, production capacity, origin of inputs, inbound and outbound logistics, consumer markets, taxation, incentives, working capital needs and economic-financial projections.
“When we talk about industrialization, we are talking about decisions that normally involve millions of dollars and many years of operation. A good study does not only serve to show why to invest. It must also show the risks, the points of attention and even when a given project is not viable,” emphasizes Linzmeyer.
For him, this is an important change in the way business owners should look at Paraguay. “It is not simply about transferring a company from Brazil to Paraguay. Internationalization requires understanding how that business will work within a new productive, tax, logistical and commercial reality.”
Paraguay seeks to add value to its production
The launch takes place at a time when the country is seeking to increase the weight of industry, expand higher value-added exports and attract new productive projects.
The Government has been presenting this agenda as part of an industrial transformation strategy, combining investment attraction, infrastructure, energy, market opening, incentive regimes and, now, new financing instruments.
Paraguay Industrial is initially aimed at medium and large industries interested in expanding capacity, incorporating technology and boosting exports. Among the highlighted sectors are agro-industry, food and beverages, metalworking, textiles and apparel, wood and its derivatives, without excluding other eligible industrial activities.
For investors, however, the announcement opens an opportunity that must be analyzed with criteria.
The general conditions of the program have already been presented, but operational procedures, specific criteria, documentation, analysis of guarantees and eligibility of each project must be observed in accordance with the regulations and guidelines of the responsible institutions.
The message to the market, therefore, goes beyond the announced US$ 100 million.
Paraguay is beginning to build new tools to finance its industrial expansion. For companies, the next step will be to turn investment intention into structured, technically viable and financially sustainable projects.
SOURCES
Ministerio de Industria y Comercio – MIC
“Una nueva etapa para la industria paraguaya con financiamiento, institucionalidad y una mirada global” – 09/17/2026.
Ministerio de Industria y Comercio – MIC
“Financiamiento e institucionalidad: Paraguay suma tres herramientas para su Revolución Industrial” – 09/17/2026.
Agencia Financiera de Desarrollo – AFD
“Paraguay Industrial: nuevo programa de financiamiento para fortalecer la industria nacional” – 09/17/2026.
Agencia IP / State Media
“Paraguay Industrial: empresas podrán acceder a créditos de hasta US$ 2,5 millones a 15 años de plazo” – 09/17/2026.
Official Paraguay Industrial Portal – Ministerio de Industria y Comercio.
CN Mercosul – analysis on the structuring and viability of industrial projects in Paraguay.
The announcement was made on September 16, during the celebration of the 90th anniversary of the Unión Industrial Paraguaya (UIP), with the participation of President Santiago Peña, Minister of Industry and Commerce Marco Riquelme, as well as authorities and representatives of the private sector.
The initiative seeks to address one of the main challenges for industrial investments: the need for long-term capital compatible with the implementation, maturation and return period of an industry.
The announced conditions are noteworthy: financing of up to US$ 2.5 million per beneficiary, a term of up to 15 years, a grace period of up to three years and final rates of 8.5% per year in dollars and 10.5% per year in guaraníes.
The funds may finance the construction and expansion of industrial plants, infrastructure, machinery and equipment, the incorporation of technology, the modernization of processes and the increase of production capacity. The possibility of financing working capital associated with the investment is also foreseen, within the limits established by the program.
A new stage for Paraguayan industry
During the launch, President Santiago Peña linked the new tools to the process of transforming the country's productive structure. “Paraguay se encuentra ante una nueva etapa de transformación productiva”, said Peña, highlighting the diversification of the economy and the advances in the country's industrial and export capacity.
In another statement, the president summarized the scenario the Government intends to present to investors: “Hoy la mesa está servida”, said Peña, citing factors such as clean energy, economic stability, investment grade, long-term financing, access to major international markets and Paraguay's strategic geographic position.
The new credit line is part of a broader set of measures presented by the Government. In addition to Paraguay Industrial, FOGAIN was announced and a project to modernize the institutional structure of the Ministerio de Industria y Comercio was presented.
For Minister Marco Riquelme, the financing issue is one of the necessary pieces to advance industrialization. “Este crédito no solamente va a dar una solución a las industrias que quieran invertir, sino también va a poner a prueba al sector financiero”, said the minister when presenting the initiative.
According to the MIC, the US$ 100 million were structured jointly with the Agencia Financiera de Desarrollo (AFD), Banco Nacional de Fomento (BNF) and Ministerio de Economía y Finanzas (MEF).
Credit does not mean automatic approval
Despite the attractive conditions, there is an important difference between the availability of a financing line and the effective approval of funds for a given venture.
Paraguay Industrial will be operationalized through Instituciones Financieras Intermediarias (IFIs) authorized by the AFD, including banks, finance companies and cooperatives.
It is these institutions that will carry out the analysis of each operation. The Ministerio de Industria y Comercio, in turn, will take part in verifying the eligibility of projects according to the program's criteria.
This means that the interested business owner will need to present more than an intention to invest. The project must demonstrate its industrial, economic and financial consistency, as well as its payment capacity, eligibility of the activity and other conditions required by the financial institution.
FOGAIN seeks to address the collateral problem
Another relevant element is the creation of the Fondo de Garantía para la Industria – FOGAIN.
The mechanism was announced to support industrial projects that meet financing conditions but require complementary guarantees to make the operation viable.
The use of the fund is expected to be optional and will depend on the characteristics and needs of each financing operation.
The combination of long-term credit with a guarantee mechanism represents an attempt to address two traditional bottlenecks of industrial projects: term and collateral.
The challenge now is to turn opportunities into projects
For Brazilian business owner and international advisor Jonathan Roger Linzmeyer, who follows internationalization and industrial implementation projects in Paraguay, the new credit line expands the available alternatives but reinforces the need for planning before deciding to invest.
“Financing is an important tool, but it does not replace the viability of the business. Before discussing how much a company can raise, we need to understand whether the industrial project is sustainable, where it should be installed, what its cost structure will be, where the raw material will come from, which markets it will sell to and what its cash generation capacity will be.”
In Linzmeyer's assessment, the moment requires investors to differentiate financial opportunity from business viability. “A project should not be created because credit is available. First we need to build a viable project. Then we analyze which financial, tax, logistical and institutional instruments can help make it even more competitive.”
This process becomes especially relevant for Brazilian companies studying the possibility of installing part of their production in Paraguay. In addition to the financial analysis, an industrial decision may involve issues related to location, energy, labor, raw materials, logistics, suppliers, the domestic market, exports, tax structure and specific regimes, such as Maquila.
Feasibility study becomes even more important
With the creation of new financing tools, the Industrial and Logistical Feasibility Study also takes on an important role in preparing projects that may in the future seek funds.
The analysis should consider different scenarios before implementation: required investment, CAPEX, operating costs, production capacity, origin of inputs, inbound and outbound logistics, consumer markets, taxation, incentives, working capital needs and economic-financial projections.
“When we talk about industrialization, we are talking about decisions that normally involve millions of dollars and many years of operation. A good study does not only serve to show why to invest. It must also show the risks, the points of attention and even when a given project is not viable,” emphasizes Linzmeyer.
For him, this is an important change in the way business owners should look at Paraguay. “It is not simply about transferring a company from Brazil to Paraguay. Internationalization requires understanding how that business will work within a new productive, tax, logistical and commercial reality.”
Paraguay seeks to add value to its production
The launch takes place at a time when the country is seeking to increase the weight of industry, expand higher value-added exports and attract new productive projects.
The Government has been presenting this agenda as part of an industrial transformation strategy, combining investment attraction, infrastructure, energy, market opening, incentive regimes and, now, new financing instruments.
Paraguay Industrial is initially aimed at medium and large industries interested in expanding capacity, incorporating technology and boosting exports. Among the highlighted sectors are agro-industry, food and beverages, metalworking, textiles and apparel, wood and its derivatives, without excluding other eligible industrial activities.
For investors, however, the announcement opens an opportunity that must be analyzed with criteria.
The general conditions of the program have already been presented, but operational procedures, specific criteria, documentation, analysis of guarantees and eligibility of each project must be observed in accordance with the regulations and guidelines of the responsible institutions.
The message to the market, therefore, goes beyond the announced US$ 100 million.
Paraguay is beginning to build new tools to finance its industrial expansion. For companies, the next step will be to turn investment intention into structured, technically viable and financially sustainable projects.
SOURCES
Ministerio de Industria y Comercio – MIC
“Una nueva etapa para la industria paraguaya con financiamiento, institucionalidad y una mirada global” – 09/17/2026.
Ministerio de Industria y Comercio – MIC
“Financiamiento e institucionalidad: Paraguay suma tres herramientas para su Revolución Industrial” – 09/17/2026.
Agencia Financiera de Desarrollo – AFD
“Paraguay Industrial: nuevo programa de financiamiento para fortalecer la industria nacional” – 09/17/2026.
Agencia IP / State Media
“Paraguay Industrial: empresas podrán acceder a créditos de hasta US$ 2,5 millones a 15 años de plazo” – 09/17/2026.
Official Paraguay Industrial Portal – Ministerio de Industria y Comercio.
CN Mercosul – analysis on the structuring and viability of industrial projects in Paraguay.