Paraguay’s industrial sector is receiving a much larger volume of financing than a year ago. According to the Agencia Financiera de Desarrollo (AFD), approvals for the sector reached USD 108.8 million in 2026 through 172 operations, compared with USD 18 million in the same period last year. The institution calculates an increase of 503%.
The growth in credit, however, highlights another issue: having resources available does not necessarily mean that every company is prepared to access them.
From available capital to a bankable project
This week, the Paraguayan Industrial Union (UIP) officially opened applications for ConEEcta, an initiative developed with AFD and the Inter-American Development Bank (IDB) to turn business opportunities into structured projects that can be evaluated by financial institutions.
At least 150 SMEs will begin the process; 80 will be preselected, 40 will receive specialized support, and the target is for at least 30 projects to formally reach financial institutions for evaluation.
The gap between those figures points to a critical stage before credit is granted: quantifying the investment, determining expected returns, assessing risks and producing the information a financial institution needs to evaluate the project.
A different moment for industrial investment
In addition to the record reported by AFD, Paraguay Industrial was launched this month, a financing line offering up to USD 2.5 million per beneficiary, terms of up to 15 years and up to three years of grace, for machinery, expansions, new plants and other industrial investments.
ON THE RADAR
The key indicator will be what happens next: how many projects ultimately obtain financing, how much capital they mobilize and how much productive investment they generate. Greater credit availability is favorable; converting that credit into new productive capacity is the step that ultimately determines its economic impact.