Brazil: A bright future

A booming agriculture and infratsructure sector

Brazil is the world’s biggest exporter of products such as soy, sugar cane, coffee and meat; it is also the largest global producer of iron ore and ethanol, which is widely used as an alternative fuel for vehicles.

The country’s biggest trading partners are China and the United States: the former accounts for almost a third of exports. “Global demand for food is rising, especially in Asia, and Brazil can help to meet this demand,” Daniel says.

“On the international stage, Brazil’s most important role is probably linked to its agriculture industry and infrastructure developments,” explains Daniel Maranhao, managing partner at Grant Thornton in Brazil.

Success through partnerships

Another issue facing overseas businesses that want to make the kind of ongoing investments needed in major infrastructure projects relates to the long-term guarantees of market access from the government. “Not only can the approvals process take a long time, there can also be uncertainty over whether future regimes will allow you to continue operating on pre-existing terms,” Daniel explains. “A lack of adequate legal protection does not help.”

As such, it makes sense for outside investors to work in collaboration with local companies – a strategy that can also help foreign investors cope better with the bureaucratic and cultural differences related to operating in Brazil. “As a result of the pandemic, there is likely to be an increase in the number of acquisition opportunities as we move ahead,” he adds.