Scaling up Finance for Sustainable Agroforestry in Paraguay

About this project

The proposed operation is a US$100 million IPF-FIL that will mobilize private capital to support the expansion of FSC-certified commercial agroforestry in Paraguay. Activities will be limited to the Eastern Region of Paraguay, which offers ideal planting conditions, providing a sustainable source of formal employment that contributes to poverty reduction. There is significant potential for creating formal jobs and diversifying incomes of small-scale farmers that opt to raise cattle under planted canopies. Framework for Financial Incentives (FFI) co- financing will incentivize smallholder aggregation, biodiversity corridors and conservation/restoration of high-value natural habitats The project will help fund a forestry credit line through Paraguay's Development Bank (AFD) and establish a forestry fund to attract impact investors, and includes the following 3 components: Component 1: The Credit Line: to support small-scale agroforestry projects including downstream processing. It will target smaller-scale projects; eligible activities include: 1) mosaic plantations mixing fast-growing species with native species; 2) reforestation subprojects for the restoration and conservation of natural forests; 3) sylvopastoral systems combining livestock with woody perennials; 4) agrosilviculture systems with woody perennials integrated with cropping systems; 5) agrosilvopasture with the combination of woody perennials with both crops and livestock; and 6) certain value chain projects (e.…

Published by

World Bank · Multilateral

Countries

Paraguay

Sectors

Forestry policy and administrative management

Places

Asuncion

Funded by

International Bank for Reconstruction and Development

Implemented by

Agencia Financiera de Desarrollo (AFD)

Accountable

Agencia Financiera de Desarrollo (AFD)

Passes funds through

International Bank for Reconstruction and Development

Published by World Bank to the International Aid Transparency Initiative (IATI), last updated 3 Oct 2026 and imported automatically. IATI identifier: 44000-P504535.

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