Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...

Emerging Industries for FDI in Brazil

Natural gas is an emerging industrial sector in Brazil and the primary source of energy with the highest growth rates in the world energy matrix. Natural gas has been rated as an excellent option for use at the international level from its environmental friendly nature and to as an alternative source of energy. As a transition fuel, ranked between liquid oil based fuels and carbon free gas fuels such as hydrogen, it has become a constant feature of national discussion as an important feedstock for Brazil’s rapidly emerging economy. Natural gas consumption stands at 23 million cubic meters per day, about 3% share in the country’s oil matrix. This makes it an important emerging market that has attracted a lot of FDI from the boundless opportunities it creates in the Brazilian economy.

 

There is a growing realization of the role of the emerging software industry as well that is considered an important driver of innovation. The software industry impacts positively in all industrial sectors of the economy thus it’s a crucial characteristic in a developing country’s economic growth. The IT services industry has grown tremendously in the last decade with boosted indigenous produced software that has made Brazil an important player in the international scene. The country is gradually becoming an important software producer with the seventh largest software industry in the world compared to the size of the markets in India and China as other potential software power houses in the developing economies. The industry is mainly domestic market driven with areas of specialization such as financial, government procurement, information security and management systems software.

 

Another emerging industry in Brazil is the tourism sector that according to the World Travel and Tourism Council is expected to grow by 5.9% in its contribution to GDP. The annual growth rate of this emerging market segment is pegged at an average of 5.6% over the next ten years. Even though foreign travel in Brazil fell by 2% last year, the tourism industry was kept alive by a thriving domestic tourism market. The 2014 world cup and the 2016 Olympics are expected to bring a considerable amount of investments in the country through the travel and tourism sector. The result of these investments in the industry is expected to be a robust growth in the next decade. In addition, the pristine beaches and a friendly people continue to play to Brazil’s advantage in attracting tourists into their growing tourism industry.

 

14 May 2010