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Britcham Brazil

05 Aug 2016

Brazil is for beginners! 

Antonio Carlos Jobim, composer of “The girl from Ipanema” once said: “Brazil is not for beginners”.  However, for UK exporters and investors in the post Brexit world, now is the time to begin thinking beyond the Olympics to the significant long term opportunities for doing business in Brazil.

Scale, ease of doing business, opportunity and familiar customers

Brazil is Latin America’s largest economy, with a complete range of highly developed industries covering agriculture, manufacturing, energy, mining, oil & gas, financial and other service sectors. Despite already having a fully integrated domestic economy, informed observers note that Brazil is likely to emerge from recession to start a steep growth cycle. PwC reports that it expects that around 742 M&A transactions will be made this year in Brazil. One of these could be an investment opportunity for your business at a price that will suit your purse.

You may not speak Portuguese, but your Brazilian peers speak English. Brazil’s culture is largely European, so Brazilians understand your mindset and therefore the learning curve for newcomers is short. Additionally, Brazil has a legal framework in which your contracts, trademarks and patents are enforceable.

UK companies who sell in the UK to any large or medium-sized UK company should find them all waiting here for you with open arms. Your UK customer base can provide you with a ready-made Brazilian revenue stream while you develop your market in Brazil. Logistics providers in the UK offer integrated air shipping services to the main airports of Brazil safely, quickly and at very competitive rates. This is a two-way street and Brazilian exports are booming. In the post-Brexit world, bi-lateral business shows significant early promise of growth with the Brazilian government aggressively pushing for the newly announced Brazil-UK Trade Deal talks through the Mercosul free trade organisation.

Infrastructure sector resurgence with migration to the Private Sector

In the short space of two months, the current interim Government of Michel Temer has made it clear that the business of Brazil is business. It intends to exit the infrastructure sector and create a friendlier business environment for private investors, including non-Brazilians. Doing so could significantly increase the already colossal US$66 billion investment planned for Brazilian ports, airports, roads and rail. Water and sanitation, once a closed shop, should now open for foreign investment, products and services. Mid-tier Brazilian construction services companies who work on these projects are consolidating, modernizing, implementing Corporate Governance codes and would welcome trusted high quality UK engineering businesses bringing investment, know-how and technologies.

Opportunities across the board

All major Brazilian industrial sectors need investment and new technology. All are open to UK investment, products and services. Manufacturing needs to retool with modern capital goods. Oil & Gas still has annual investment budgets of over US$20 billion and new players are entering as Petrobras restructures its upstream and downstream businesses.  Education services and technical training companies are consolidating, creating opportunities for new players and services. The same applies to the Health sector where, additionally, medical diagnostic tools and services are sorely needed.  Brazil needs diversified and efficient power to reduce dependence on hydropower generation (65% of the total). Demand is growing sharply for energy efficiency tools and solutions, and for alternative renewable energy sources, including wind, solar and biomass.

Britcham Brazil: members helping you to help yourself

Britcham Brazil signposts enquiries from potential UK exporters and investors to its members. They know and understand what you are looking for and can advise you you at rates compatible with the quality services and information required. At Britcham Brazil you will meet customers, consultants, and integrators as well as those involved in the purchase of technology, products and services.  Leading business players participate in each of our committees, which mirror the high-growth sectors in Brazil and help us never to leave a query unanswered. We work closely with the British Chambers of Commerce in London, with UKTI, who are represented on our Board, and with the local Industry Federations.

UK companies as diverse as SageBritvic and Land Rover are recent British investors in Brazil. This is a great time for other UK investors and UK exporters to join them and their supply chains.  You would get a warm welcome at Britcham Brazil.

Richard Taylor and William Ballantyne

Board Members, Britcham Brazil