Paraguay’s Development Finance Agency (AFD) approved a record US$108.8 million in financing for the industrial sector in 2026, marking a 503% increase from the US$18 million approved in 2025.
The AFD is the country’s second-tier public development bank, playing a key role in Paraguayan development by providing funding to private banks, financial companies, and cooperatives, which then extend loans to businesses and other final beneficiaries.
Driving more investment and jobs
The increase in financing supported 172 operations in the industrial sector during 2026. The number of beneficiaries rose by 258% compared with the previous year, while the investments helped generate more than 3,400 jobs, a 213% increase in job creation compared with 2025.
The financing also reached all 17 departments of Paraguay. According to the AFD, this nationwide distribution contributes to the decentralisation of economic development and allows industrial investment to extend beyond the country’s main economic centres.
Growing alongside manufacturing
The surge in AFD financing comes amid broader growth in Paraguay’s manufacturing sector. Paraguayan Maquila exports also rose 25% year-on-year, reaching US$717 million in the first half of 2026, while the sector generated 1,923 new jobs during the period. According to the Central Bank of Paraguay’s (BCP) Quarterly National Accounts Report, industry accounts for approximately 17% of the country’s GDP and recorded year-on-year growth of 6% during the first quarter of 2026.
AFD financing was directed toward a range of productive investments, including the purchase of machinery and equipment, expansion of production capacity, and construction of new industrial plants. Other funds supported working capital and energy-efficiency projects.
A long-term commitment
The 2026 results build on the AFD’s longer-term support for Paraguay’s industrial sector. Since its creation, the agency has approved more than US$600 million in industrial financing, contributing to the creation of more than 50,000 jobs nationwide.
The latest figures reinforce the AFD’s role in supporting productive investment and Paraguayan development, while strengthening one of the country’s key economic sectors. AFD General Manager Fernando Lugo highlighted the momentum of the country’s industrial sector and the role of targeted financing in supporting its continued development.
“The institution accompanies this process through financial tools that allow companies to invest, innovate, and generate quality employment throughout the territory.”
