Brazil investment is definitely back at the forefront of investor opportunities judging by speeches at the recent Brazil Investment Forum. From the country’s top politicians to high-level international executives, the overwhelming sentiment was of optimism and that now is the ideal time to invest.
Over 1,400 people from 42 countries attended the two-day conference held in Sao Paulo, the country’s financial capital. Speeches and roundtables at the event focused on the current situation in Brazil and the investment opportunities available for foreigners.
Keynote speakers included several of Brazil’s politicians such as the Brazilian President Michel Tremer and the Ministers for Industry and Planning. High-level executives from banking (for example, Credit Suisse and Citibank) and consulting (e.g. Deloitte) also took the floor to offer their view on the current openings on the Brazil investment stage.
“Brazil is back”
The key message from Brazilian politicians led by the country’s President was that the country is well on track to overcoming its problems and returned to the world economic stage. “Brazil is back,” were the opening words in Temer’s speech when he also assured attendees that “we have left behind the greatest recession in Brazilian history”.
Other speakers echoed this sentiment and offered facts to back it up. The President of Credit Suisse said that one of the most noticeable signs of new Brazil investment can be seen in the number of IPOs on the Brazilian stock exchange.
Since 2013 when there were 10 IPOs, the average has come in at just one a year. Until this year when four have taken place with three more on the horizon. For the Credit Suisse executive, this burgeoning of activity indicates a surge in interest from short-term investors.
Foreign direct investment figures too speak of more optimistic sentiment among investors. In Q1 this year, foreign investment reached US$23.94 billion, a 41% rise on the same quarter in 2016. By the end of May, the figure had exceeded US$30 billion and Brazil is on track to be one of the world’s top five investment destinations this year. Foreign investment figures would seem to echo the words of the President of JP Morgan Brazil when he said that “Brazil is the best horse to bet on”.
Key sectors for Brazil investment
The largest country in Latin America and the world’s ninth biggest economy offers numerous investment opportunities. The Brazil Investment Forum centred on key sectors such as infrastructure, agriculture and energy.
“Brazil is a country of opportunity. Perhaps few countries in the world have so many, particularly in infrastructure,” said the President of the Bank of Brazil. A joint Brazil and Chinese fund has just announced major investment in infrastructure around the country to the tune of US$20 billion.
As one of the world’s key producers of food, Brazil also stands out as a destination for investment in agriculture. Speaking at the Forum, the Director of Commercial Operations for Bayer said that “the productivity gains we have seen in Brazil have not been seen in any other country.” Brazil accounts for almost 7% of all global agricultural trade.
The time is now
The overwhelming sentiment among all the speakers at the Brazil Investment Forum was of optimism. Speakers were unanimous in that Brazil has put the worst behind it and will move forward to a strong 2017 and 2018. Henrique Meirelles, the Finance Minister predicted excellent GDP growth figures for Q1.
Speakers also agreed that the time to invest is now. According to Meirelles, investors should move now “before prices reflect better-valued assets. Those who are present at the beginning of the cycle will benefit more”.
“Brazil is undoubtedly a land of great opportunity,” says Dies Poppeliers, Managing Director of BRIC Group. “We have noticed a marked uptick in interest so far this year as investors look to take advantage of the economic recovery.”
An investment company specialising in global real estate opportunities, BRIC Group is currently developing The Coral resort, in Northeast Brazil, a luxury beachfront resort. BRIC Group also offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.
(Source: Brazil Investment Forum)