Brazil must more than double infrastructure investment to close gap, CNI says

Brazil infrastructure investment must more than double if the country is to reduce its historical deficit and move closer to international standards, according to a new study by the National Confederation of Industry, known as CNI.

The report, titled Financing Infrastructure Investment in Brazil, proposes a new financing framework to increase the role of private capital and support long-term projects.

In 2024, Brazil invested R$266.8 billion in infrastructure, equivalent to 2.27% of GDP. According to CNI, that figure would need to rise to 4.65% of gross domestic product, or about R$550 billion per year, and remain at that level for at least two decades.

Of the total invested in 2024, R$188.1 billion, or 70.5%, came from the private sector. Public investment totaled R$78.6 billion, with states and municipalities accounting for most public spending.

New financing model

For CNI, no single funding source can meet Brazil’s infrastructure needs on its own. The new framework should combine public and private resources, deepen the capital market and create better conditions for long-term investment.

In a statement, CNI President Ricardo Alban said Brazil needs economic and institutional stability to attract capital.

“Brazil needs fiscal responsibility, strong institutions and legal certainty to create the conditions to mobilize more private resources for infrastructure, without giving up the strategic role of public investment,” Alban said.

He also called for a state-level strategy to ensure continuity across projects. According to Alban, modernizing infrastructure requires a continuous, systematic and long-term effort, supported by a state policy carried out by successive administrations.

Private funding gains ground

The study shows a shift in the composition of infrastructure financing between 2010 and 2024. In 2024-adjusted values, private funding rose from an average of R$88.6 billion between 2010 and 2014 to R$184.5 billion in 2024.

Over the same period, public resources fell from R$208.5 billion to R$107 billion. Multilateral institutions contributed R$8.4 billion in 2024.

Over the past decade, Brazil has undergone a structural change in how infrastructure is financed. The share of private funding increased from 29.3% between 2010 and 2014 to 61.5% in 2024.

Measures proposed

CNI says the new framework should include macroeconomic and fiscal stability to reduce risks and the cost of capital; a stronger capital market, with more institutional investors; expanded private credit, with models that distribute risks more efficiently; a larger pipeline of structured projects for concessions and partnerships; legal certainty and regulatory predictability; and technical autonomy for regulatory agencies.

The study also highlights the role of Brazil’s development bank BNDES and other public development institutions in reducing risk, structuring projects and mobilizing private capital.

Lessons from abroad

CNI’s analysis draws on experiences from the United Kingdom, Chile, Australia, Mexico, Spain, India and France. Despite differences among those models, the confederation identifies common factors in countries that have managed to expand infrastructure financing capacity: economic stability, reliable institutions, regulatory predictability, developed capital markets and long-term financing instruments.

According to CNI, public resources should be used strategically to attract private investment. Under the organization’s proposal, public investment would remain essential, but Brazil needs to move toward a model in which those resources have greater power to mobilize private capital.

For logistics, ports and foreign trade, the debate over Brazil infrastructure investment is central. Closing the country’s infrastructure gap would be critical to reducing bottlenecks, improving transport efficiency and strengthening the competitiveness of Brazilian exports.

Source: Agência Brasil

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