Brazil strengthens cooperative sector through new legislation

Brazil has strengthened its cooperative sector through Law 15.433/2026, which recognizes cooperativism as a national cultural manifestation and mandates state support to foster its social and economic development. The law emphasizes values such as mutual aid, democratic participation, and collective development. This legislative framework is supported by a “Cooperative Block” in the Brazilian Congress, consisting of lawmakers from various parties.

Data from the 2025 Brazilian Cooperativism Yearbook indicates the sector's significant scale, with 29 million members across 4,400 cooperatives. These entities hold R$ 1.6 trillion in assets and generated R$ 61.3 billion in surpluses. Credit cooperatives are particularly prominent, managing R$ 1.1 trillion in assets and providing essential financial services to 1,072 municipalities that lack other physical banking institutions.

In contrast, representatives from the Confederation Cooperative of the Republic of Argentina (COOPERAR) have noted a divergence in regional policies. While Brazil provides specific legislative and tax treatments for cooperatives as social enterprises, Argentine sector leaders have expressed concerns regarding the current administration's policies under Javier Milei.