The Brazilian government has approved the ‘New Industry Brazil’ action programme, allocating BRL112.9 billion by 2026 to strengthen its defense industrial base. The initiative focuses on enhancing local production of military equipment and promoting research and development to ensure national sovereignty. Significant contributions from both the government and private sector are expected to drive this program forward, benefiting various defense and security projects.
On February 12, the Brazilian government approved a significant initiative aimed at bolstering the nation’s defense technological and industrial base. The initiative, under the ‘New Industry Brazil’ action programme, allocates BRL112.9 billion (USD19.5 billion) by 2026 to enhance domestic defense production capabilities. This program, initiated in January 2024, emphasizes research, development, and innovation in defense technologies to ensure national sovereignty.
Of the total funding, BRL79.8 billion will be sourced from the government, which includes BRL31.4 billion designated for the local manufacturing of military equipment, such as aircraft, armored vehicles, submarines, and frigates. In addition, BRL42.1 billion was allocated during 2023 and 2024, with the remaining BRL37.7 billion earmarked for future local projects in 2025 and 2026.
The Ministry of Defence, along with the Brazilian Development Bank and the Funding Agency for Studies and Projects, will provide this financial support. The private sector is expected to contribute up to BRL33.1 billion, which includes BRL23.7 billion for aerospace and defense ventures, BRL8.6 billion for nuclear projects, and BRL787 million for security equipment.
Additionally, in the land domain, Iveco Defence Vehicles is actively supplying the Brazilian Army and export markets with Guarani 6×6 armored vehicles, and is planning to assemble 420 LMV 2 4×4 light armored tactical vehicles for the Army by 2025. This local production effort aims to enhance defense capabilities and foster domestic industry integration.
The Brazilian government’s initiative marks a robust investment in its defense capabilities, emphasizing local production and technological advancement. With significant allocations for various defense sectors and private sector participation, this plan seeks to reinforce national sovereignty through a self-sustaining defense industrial base.
Original Source: www.janes.com
