Brazil Embarks on a New Era of Sustainable Public Enterprise with Innovative AFD Financing
Paris, France & Rio de Janeiro, Brazil – August 18, 2025 – The Agence Française de Développement (AFD) is proud to announce a groundbreaking partnership with Companhia de Saneamento do Estado de Sergipe (CAGECE) in Brazil, marking the launch of the first innovative sustainable trajectory financing for water and climate initiatives. This landmark agreement, detailed in a recent press release from AFD, signals a significant step forward in transforming Brazil’s public enterprises towards greater environmental responsibility and resilience.
The innovative financing mechanism, developed jointly by AFD and CAGECE, moves beyond traditional lending models. Instead, it is designed to support CAGECE’s long-term strategic vision for sustainable development, specifically focusing on critical areas of water management and climate action. This forward-thinking approach allows for greater flexibility and adaptability, enabling CAGECE to pursue ambitious projects that will have a lasting positive impact on the environment and the communities it serves.
This pioneering initiative underscores AFD’s commitment to supporting developing countries in their transition to a low-carbon and climate-resilient future. By providing this tailored financial instrument, AFD is empowering CAGECE to undertake essential investments that will not only improve water infrastructure and services but also contribute to the broader goals of climate change mitigation and adaptation in Brazil.
The collaboration highlights a shared understanding of the critical nexus between water security, climate resilience, and sustainable economic development. Through this partnership, CAGECE is set to implement projects that are expected to enhance water resource management, reduce water loss, improve sanitation services, and contribute to the preservation of vital ecosystems, all while addressing the challenges posed by a changing climate.
This innovative financing model is anticipated to serve as a blueprint for other public enterprises in Brazil and beyond, demonstrating the efficacy of long-term, results-oriented financial support for transformative sustainability agendas. The AFD’s engagement with CAGECE is a testament to their dedication to fostering impactful and enduring change in the public sector, promoting responsible governance, and building a more sustainable future for all.
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AFD published ‘Un prêt innovant pour transformer les entreprises publiques : la CAGECE et l’AFD lancent le premier financement de trajectoire durable pour l’eau et le climat au Brésil’ at 2025-08-18 08:18. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.