As the Brazilian economy keeps attracting more and more interest by American companies, BTCC president kindly shared his practical experiences in the country.
Brazil-Tampa Bay Chamber of Commerce president, Mr. Jefferson Michaelis while working on a special assignment, shares his current experience in Brazil.
"Just 30 days ago, I was temporarily assigned to lead two important projects in Brazil. I arrived with very low expectations, however what I'm seeing here is amazing. The Brazilian economy is vibrant and is booming, internal consumption is going through the roof, the poor class (C class as is called here) is really getting richer, international companies are arriving here every day. There are lots of challenges in Brazil (red tape is huge), but the ROI can be very, very appealing for those foreign companies with the right entry strategy" he said.
There are cases, where investments in Brazil are surpassing developed economy levels. One concrete example is MMX Mineracao & Metalicos SA, the iron-ore miner controlled by Brazilian billionaire Eike Batista, who plans to invest 5 billion reais ($2.9 billion) to expand mines in Brazil in 2011 as Asian demand for raw materials increases. Athena Holdings is another case, this American investment firm, plans to double the amount of projects in Brazil in the upcoming months.
"My sense is that the pace of mega deals (including IPO) in Brazil will quicken in 2011, as we are at a point in the Brazilian cycle where winners are starting to become evident, the market's is having a proven good run for a while and I think people will be anxious to complete deals in this hot market environment," Mr. Michaelis said during his interview Yesterday to a local newspaper.
Current facts about Brazil:
• Brazil is the fifth largest country in the world.
• The country has very pleasant geographical conditions. It has very conducive weather between 25-30 degrees Celsius.
• Brazil has a very good political setup. It is a democratic country and for many years has a proven stable political system.
• It has a very stable currency (REAL is the local currency).
• Investors investing in Brazil not only would see tremendous gain, but can also consider becoming a Brazilian resident as the cost of living is about 20-25% less than in any European country.
• The government of Brazil encourages foreign investment in the country in its diverse sectors. The government provides several incentives to the investors and allows the investors to have 100% ownership of land and property.
• Brazil has trade relationships with more than 100 foreign countries.
About the Chamber of Commerce
The Brazil-Tampa Bay Chamber of Commerce, BTCC ( http://www.braziltampa.org/ ), is a not-for-profit organization. BTCC has emerged as one of the most dynamic bilateral business catalysts in the nation in recent years.
