Published On: Mon, Nov 26th, 2018

Brazil, the new El Dorado for American companies, has reopened for business. Come on back, everyone

The election of a new Brazilian president, Jair Bolsonaro, in October, has not only signaled a sweeping political change in South America’s largest nation, it is expected to halt the country’s further slide into a morass that has taken a financial, partisan and ideological toll on many Brazilians in just the past few years.

Rather than drive the country to a new low, like Venezuela, he is seen as a tough, but an aggressive leader who will establish a new cycle of economic growth, with sustainable bases of monetary stability.

In other words, Brazil is open for business again, and nations like the United States are welcome to come on back.

A recent survey was conducted by one of the world’s most respected consulting firms asking 100 Brazilian companies with a value of more than $800 billion – or about 43% of Brazil’s GDP – for their expectations for the new year of 2019. Their responses offered some highly interesting data on both sides of the political divide.

These companies expect the government to take or lead the following actions:

  • 93% hope the new leader will initiate major tax reform;
  • 90% want pension reform;
  • 80% are promoting political reform;
  • 62% anticipate he will strengthen the fight against corruption;
  • 61% favor the government promoting fiscal adjustment of public accounts;
  • 80% are looking for job creation incentives;
  • 58% encourage the president to keep inflation below 5%;
  • 53% want Brazil to increase its participation in foreign trade;
  • 52% favor a broadening and enhancement of public-private partnership programs;
  • 51% urge an increase in the supply of credit to private companies;
  • 51% want to streamline the processes to improve the opening and closing of companies;
  • 48% suggest creating more incentives for research and preparation for companies;
  • 84% feel education is a priority;
  • 77% want the government to take actions to improve public safety;
  • 65% want the government to take actions that improve health;

 

On the other hand, these firms urge the government to be smaller and decrease its participation in the following areas:

  • 73% in the area of banking services;
  • 71% in the steel industry;
  • 69% in communications;
  • 60% in electrical energy;
  • 59% in mineral exploration;
  • 58% in oil and gas.

Most importantly, 94% believe that the government will give a total or partial priority to the expectations of the business sector.

In consequence:

  • 97% of companies will make some kind of investment;
  • 60% will launch new products;
  • 59% will adopt new technologies;
  • 49% will maintain training and employee training initiatives;
  • 30% will buy new machines;
  • 70% will capture new resources;
  • 47% will increase the number of employees;
  • 46% will implant more qualified employees as a result of robotization.

With regard to business expectations:

  • 69% feel that sales will increase;
  • 43% say investments in equipment will increase;
  • 53% suggest that investments in training and qualification will increase;
  • 49% feel the investment in research and development will increase.

Actually, based on these ideas and expectations, American-based companies, or U.S. firms with a branch in Brazil, have a prodigious opportunity to expand and create new prospects in their businesses.

About the Author

- My name is Carlo Barbieri, an entrepreneur, civic activist and a leader of many organizations associated with Brazil. A native of Brazil myself, I am currently the CEO of Oxford Group, a firm composed of many international consulting and trading companies. I am also a founding member of the Brazilian Business Group and founding member and Past President of the Brazil Club. In addition, I serve as a Board member of the Deerfield Chamber of Commerce. I have served as a member of the Florida Chamber of Commerce and the Florida Brazil Partnership. Past President of the Rotary Club – Boca Raton West for the 2014-2015 term, I have also been Vice President and Professor of 2Grow – Human Development. An Ambassador of Barry University in Brazil, I am the former President of the Black Fire Bull Steak House. I have also presided over a number of organizations such as the Brazilian Association of Trading Companies (ABECE), Brazil-China Chamber of Commerce in São Paulo, Brazil-Australia Chamber of Commerce, Brazil-Dominican Republican Chamber of Commerce; director of the Trade Center of the State of São Paulo, Brazilian Association of Freight Forwarders and Brazilian Association of Banks. I was also a local Council member for the Consulate General of Brazil in Miami, for the 2013-2017 term.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>