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...

Five reasons to place Brazil high on your list of priorities for investment

Five reasons to place Brazil high on your list of priorities for investment, business expansion and exports in the coming years:

 

1. Demographics

With a large population of 198 million, and an average age of only 28, Brazil's demographics are compelling compared to almost any other emerging market, (other than India's average age of 25). This is a young energetic country with a bright and exciting future. You can feel the energy and excitement in the streets, shopping malls and restaurants!

 

2. Agriculture and Resources

Brazil is a vast country, richly endowed with rainforests, arable land, minerals, commodities, oil and gas, plus plentiful supplies of water. However, whilst Brazil is already the world's largest exporter of many things, including cattle, sugar, coffee, orange juice, and poultry, over 300m hectares of Brazil's arable land is yet to be cultivated! A similar story applies to its resources, with vast proven reserves of oil and gas off the East Coast waiting to be extracted. The potential is enormous!

 

3. Domestic Consumption

Whilst Brazil's exports are strong and diversified, it has been domestic demand that has been driving Brazil's GDP Growth since at least 2006. This was a significant factor in enabling Brazil to quickly recover from the recent global downturn. Incomes have been rising rapidly, over 30 million people have joined the middle classes in only the last 5 years, and now retail sales are growing by over 10% per annum. The big plans to build new shopping malls throughout the country suggests that Brazilians will be shopping hard for the foreseeable future!

 

4. Renewable Energy

Brazil is predominantly powered by water-generated energy, with 83% of the country's total energy generated from renewable sources. We visited the Hydro-Electric plant at Itaipu, the world's largest generator of renewable and clean energy (even more than the much publicised Three Gorges Dam in China) and visited UNICA, the Association of sugar cane growers and ethanol producers that fuel Brazil's cars, and left with the impression that Brazil is virtually self-sufficient when it comes to generating its own power.

 

5. An Exciting Future

With the FIFA World Cup in 2014 and the Olympics to be hosted by Rio in 2016, Brazil will be in the global spotlight in the coming years, and you can expect to read and hear a lot more about Brazil in the media. But it’s in the hundreds of billions of REAL that will be spent on infrastructure, new sports facilities, hotels, homes, roads, airports and buildings, not to mention the vast consumption of products, services and expertise that will accompany these upgrades, that should be on the minds of every Australian investor, entrepreneur and business with an eye on the future.

 

It's easy to under-estimate Brazil from the images of soccer, sunny beaches and Carnival that appear in magazines, newspapers and on the TV. But this would be a mistake. It's a serious and well-run country, with stable and improving economic fundamentals and, in the next 20 years, it will become one of the largest five economies in the world. Shouldn't you be taking a flight across the Pacific Ocean to have a look?

 

 

Article by: David Thomas

David having just returned from Sao Paulo and Rio de Janeiro as a leader of our first BRIC+ Study Tour Brazil, the first ever Australian financial services delegation ever to visit this amazing country, I ask myself: 'why it is taking so long for Australia to engage with a market which has as many reasons as we do to call itself "lucky" and a glittering future of opportunity, excitement and potential?'