Brazilian Official Guide on Investment Opportunities
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Brazilian Brazilian Ocial Guide on Investment Opportunities Ocial Guide on Investment Opportunities MINISTRY OF MINISTRY OF INDUSTRY, FOREIGN EXTERNAL RELATIONS TRADE AND SERVICES Brazilian Official Guide On Investment Opportunities Foreword Brazil is focusing on a new cycle of sustainable growth, based on an extensive adjustment process and the adoption of measures to improve competitiveness and productivity. The launching of the fifth edition of the Brazilian Official Guide on Investment Opportunities is aimed to support this new cycle of growth by identifying investment opportunities across the country. The guide presents trustworthy, systematized and high level information to both foreign and domestic investors about specific projects. It provides direct contact information for each project, which fosters transparent relations between public and private entities Brazil offers a safe and outstanding investment environment, full of business opportunities. In the past years, the country´s demand for infrastructure services has increased significantly. The Federal government is promoting the modernization of its infrastructure with concessions, private financing and the participation of banks and investment funds. The expansion and improvement of infrastructure services will increase the competitiveness of the economy. It will also reduce logistics costs for industries, expand exports and promote efficiency in the flow of agricultural production and address the growth of national and international logistics demand. This new version of the Brazilian Official Guide on Investment Opportunities contains 149 projects in state and federal levels, totaling more than US$ 47 billion in projects to be carried out in the near future. There are opportunities in various sectors such as energy, highways, railways, ports, airports, telecommunications, generation and transmission of energy, urban mobility, construction, tourism and many others. In the past years, Brazil has consolidated its position as a strong and attractive global player with a high degree of economic diversification. The country is currently the seventh largest economy in the world. With a privileged location in the east-central part of South America, it borders almost all other South American countries. This allows companies to easily access Latin American and African markets. A stable financial system, tradition of respect for contracts and huge domestic market make Brazil a safe place for investment. As an example, the country is currently the eighth biggest FDI destination in the world in 2015 according to UNCTAD. The organization of this Guide was implemented by the Brazilian Investment Information Network (RENAI), part of the Ministry of Industry, Foreign Trade and Services (MDIC), the Ministry of Foreign Affairs (MRE), the Brazilian Service of Support for Micro and Small Enterprises (SEBRAE) and the Brazilian Trade and Investment Promotion Agency (APEX-Brasil). The preparation of this Guide also had valuable support and guidance of several Federal partners as well as state and local Secretariats of all Brazilian regions. It is worth highlighting the participation of the Ministry of Finance, the Ministry of Mines and Energy, the Ministry of Planning, Development and Management, the Ministry of Tourism, the Ministry of Transportation, Ports and Civil Aviation, the National Land Transportation Agency, the Brazilian Electricity Regulatory Agency, the National Agency on Telecommunications and the National Council of State Secretaries of Development, Industry and Trade, among others. 3 Index Projects by Sector 189 Why Brazil? 7 Investment Opportunities at State and Local Levels 77 Acre 80 Useful Links 202 Investor Support Institutions 13 Alagoas 82 Contact Info 203 Amapa 85 Amazonas 86 RENAI | Brazilian Investment Bahia 88 Information Network 15 Ceará 92 Espírito Santo 98 MRE | Ministry of External Relations 16 Federal District 104 Goiás 106 APEX-BRASIL | Brazilian Trade and Maranhão 111 Investment Promotion Agency 17 Mato Grosso 120 Mato Grosso do Sul 124 Minas Gerais 126 Investment Opportunities at Federal Level 19 Para 127 Paraiba 131 Generation and Transmission of Electrical Power 20 Parana 135 Telecommunications 31 Pernambuco 140 Logistics and Transportation 34 Piaui 149 • Highways 34 Rio de Janeiro 152 • Ports 37 Rio Grande do Norte 158 • Airports 38 Rio Grande do Sul 161 • Railways 42 Rondonia 162 • Financing 45 Roraima 164 Transport and Logistics / Public Ports 46 Santa Catarina 166 Transport and Logistics / Highways 61 Sao Paulo 168 Transport and Logistics / Railways 69 Sergipe 181 Transport and Logistics / Airports 71 Tocantins 183 Export Processing Zones – EPZ 74 4 5 Why Brazil? In the past years, Brazil has consolidated its position as a strong and attractive global player with a high degree of economic diversification and is currently the seventh largest economy in the world. The country is a vigorous democracy, with free multiparty elections and strong institutions. The economic development of the past years resulted in an expanded mass consumer market and increased social equality, an environment of institutional stability and increased social cohesion. Nearly 40 million Brazilians experienced significant improvements in their life conditions. In addition, Brazil has a large and fast growing consumer market, comprising 205 million people (IBGE). Its democratic government, stable financial system and huge domestic market make Brazil a safe place for investment and gives it the strength to weather international crises. The increase of purchasing power and the investment opportunities in sectors like oil and natural gas, generation and transmission of electrical power, real estate and agribusiness places Brazil as an attractive choice on investment. The country is currently the sixth biggest FDI recipient in the world (UNCTAD). It has a privileged location in the east-central part of South America, where it borders almost all other South American countries, allowing companies to easily access Latin American and African markets. Modern, efficient and competitive, the Brazilian agribusiness sector is a prosperous, safe and profitable activity. The strength of Brazilian agribusiness is a result of scientific and technological development in modernizing farming and expanding the industry of agricultural machinery and equipment. The science and technology agenda encourages research in areas that are strategic for economic development, such as energy, aviation and agribusiness, as well as, IT and biotechnology. Some of the Country’s main competitive advantages are: » Leading regional economy » Solid investment framework » Huge domestic market » Global player » Innovative hotbed » Major infrastructure projects » Energy and Agricultural powerhouse » Gateway to Latin America » Biggest and most diversified science, technology and innovation system of Latin America » One of the largest producers and exporters of agricultural products » Competitive differential in the sector of aircraft building » Competitive differential in the sector of oil exploration in depth water and large offshore oil fields. 1 Source: Brazilian Institute of Geography and Statistics -IBGE. 7 The country is also actively working to face the challenges imposed by shocks that affected its economy in recent years, International Reserves (US$ billion) such as monitored prices, hydropower resources constraints, exchange rate, among others. The Brazilian economy is going 373 369 through an extensive adjustment process, aiming to create the conditions for a new cycle of sustainable growth, while 352 359 364 seeking to ensure the social achievements of recent years, with sharp reduction of poverty and inequality, factors of great importance to promote competitiveness gains. 289 239 Fiscal adjustment and fiscal reform will be the cornerstones of the current macroeconomic realignment, ensuring 194 180 predictability and sustainability of the public sector accounts and debt dynamics, improving spending effectiveness and Source: improving confidence conditions both in the investor and consumer side. Brazilian Central Bank (BCB). 86 49 53 54 Additionally, changes in pension laws are to be addressed in the short- to medium-run. 33 36 38 Brazil is also working to improve its competitiveness and productivity, adopting measures to improve business conditions. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 The external sector of the Brazilian economy has enjoyed a comfortable position for several years, and the current adjustment improved even more its sustainability. The accumulation of a robust cushion of international reserves allows companies and investors to cope with the external volatility with confidence. On top of that, the current adjustment of the In 2015, Brazilian foreign trade registered US$ 362.6 billion, above the average of the last two decades. Despite the effect Real currency value triggered the trade balance recovery and made Brazilian assets financially attractive when measured of fall of exports prices on the value of Brazilian exports (-21.6%), the exports volume rose 8.3%. The trade surplus in 2015 in US dollars. In 2015 there was a reduction of more than 40% in the current account deficit, while FDI remained robust, was US$ 19.7 billion, the highest since 2011, and one of the main factors to explain the sharp decline of the current account allowing it to finance the whole current account deficit. deficit, from 4.3% of GDP in 2014 to 3.3% in 2015. Trade