Foreign companies investing in Brazil again in 2017

New government foreign investment website.

Amid an environment of prolonged recession, falling incomes and the explosion of unemployment, retail companies have erased new investment plans and were forced to reduce their operations. Last year, just over 100,000 stores were closed throughout the country. Meanwhile, a french multinational of sports equipment expanded to Belo Horizonte and Praia Grande, on the coast of São Paulo. Until December, the group intends to open two new units in São Paulo and another in Porto Alegre, consolidating the local presence in 24 points of sale.

Faced with the uncertainties that still linger, a large group of foreigners rehearses a step forward, according to an article in Isto ‘E magazine that says that for those who come from outside, it matters less the short term and more the potential of a market with almost 200 million consumers. Present in the country since 2001, the network has done its homework to face the crisis, cutting operating expenses, and seized the opportunity to grow with the appeal of low prices.

By the UN criteria, however, he believes that Brazil will be highlighted in the global ranking, although the volume is close to that recorded last year. The electricity sector, which accounted for 60% of January’s revenues, appears as one of the most promising areas. The National Electric Energy Agency (Aneel) has scheduled for March the next energy transmission auction, which will offer 34 lots throughout the country, with investments in the house of R $ 13 billion.

New government foreign investment website.

Keeping an eye on this demand, Swiss ABB invested $ 10 million in a high-voltage circuit breaker factory for transmission and distribution. The pharmaceutical industry emerges as another investment frontier. The sector is expected to double in size over the next five years, according to consultancy QuintilesIMS, which specializes in the area. Germany’s Merck expects to contribute R$ 100 million in the country by 2020 to expand the Jacarepaguá plant in Rio de Janeiro.

Foreigners also hunt for opportunities in small and medium-sized enterprises, such as FS, which produces software to protect cell phones and received a contribution from the Carlyle investment fund.

In the oil sector, the government has prepared a video to publicize changes in local content, with subtitles in English. The video was posted on the government website focused on promoting Brazil to foreign investors (www.brazilgovnews.gov.br). The main change was the reduction of the minimum percentage of commitment to purchase goods and services in Brazil in half. Local content is no longer a defining criterion for winning consortia in the auctions of exploratory areas of the National Agency for Petroleum, Natural Gas and Biofuels (ANP).

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Joe Cloud
Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.