Brazil is probably one of the richest countries in the world regarding natural resources: sweet water, good soil and weather, large agricultural fields and millions of professionals across a diverse number of sectors.
Brazil’s population of 210 million people also fosters a diverse social landscape. Sprawling cities house major technology investments and resources, new start-ups and seasoned professionals. These cities, however, are seeking solutions to old problems, which offers great opportunities for investors and innovators. Find out how foreign investors and businesses can make their mark in Brazil with relative ease.
Overview: Brazil’s basic needs
Brazil’s big cities and its citizens are seeking to satisfy basic needs such as potable water, reliable electricity, transport, and internet access. For Brazil, it is time to improve basic needs, since electricity problems in Venezuela have reminded the Brazilians about their own technical difficulties.
Electricity failures have been a crippling issue for Brazil in recent times. The government, together with electricity companies, has been rising electricity prices and imposing fines to obligate people to save electricity, in order to avoid interrupting electricity services.
These are not new demands or issues, and governors are already driving searches for innovative solutions. Brazilian industries are supported by the government to bring in different initiatives to tackle age-old problems, which is great news for innovative businesses.
New incentives create new opportunities
While strict policies try to manage these shortfalls, they aren’t proposing long-term solutions. It’s for this reason why investments in new technologies, facilities or support for particular actions willing to provide alternative electricity sources are necessary for Brazil. The government gives a high priority and financial backing to these investments.
Particular attention is paid to seeking out clean energy sources. In 2018, the Brazilian government appointed special financial support for companies and individuals that show interest in buying or building alternative electricity systems using solar panels or wind energy.
Once alternative energy sources are integrated into the public electricity system, it will provide new energy for a number of Brazil’s cities. Besides meeting new environmental standards it also has a social function that provides a solution to old electricity failures. Financial incentives offered by the Development’s National Bank – Banco Nacional de Desenvolvimento Econômico e Social (BNDES) – will help to take the first step towards securing alternative sources.
This example shows that people and companies in Brazil are ready to incorporate new technologies and are willing to invest in new solutions to deal with old problems. Therefore, there is no better moment for companies that have experience in this field to jump into this opportunity. With new technologies, solutions, and products, millions of people can enjoy a reliable and stable energy system.
Potable water: a great need for Brazil
Another risk lies in potable water sources. In Brazil, electricity systems and powerhouses are based on hydroelectric resources that harm clean and potable water due to wastewater pollution. The non-governmental organization Trata Brasil has published various studies and reports regarding wasted potable water in Brazil. The report identifies smaller cities, indigenous towns, and poorer communities have no proper wastewater treatments. Developments of new technologies for hydraulic systems and alternative wastewater treatments are more necessary than ever.
Outlook for investors
Brazil offers a great and favorable business environment with outstanding opportunities in industries such as transport and logistics, fuels, education, organic trash treatment, social development, agricultural services & technologies, cosmetics and health products, and mobile phone application development. Brazil’s new president and his liberal reforms present an environment ideal for forward-thinking investors.
However, it’s crucial to do good research before entering the territory. The welcoming environment for foreign investors and new business is troubled by competing needs, giving rise to various challenges. Besides your business, you will simultaneously need to deal with complex regulation, tax requirements, and formal proceedings.
A local professional partner can help you guide through all necessary incorporation steps and legal obligations to let you focus on your main expansion goals. Finding a trusted partner will save money and time, and all local obligations will be taken care off.
Consider the following tips when investing in Brazil:
- Choose wisely your local team to support your business activities and overcome language barriers
- Look for trustable and reliable suppliers (quality is not always provided by paying the highest fees or by the biggest firms)
- Talk to other investors to understand the business environment
- Budget for plenty of time to gather required documentation for the company formation process
- Estimate and be aware of local employment costs
- Incorporating a local company can take a few months (despite new government efforts, public services and registries need time for their processes)
- Ask a tax professional to explain all tax purposes and requirements before incorporating.
Ready to expand your business?
Do you have new solutions for old problems? Do you use innovative technology and are you willing to invest in Brazil? Start researching business possibilities and dig deeper into the opportunities, obligations, tax requirements, and people in Brazil.
It’s advisable to team up with a local partner that specializes in personalized services such as legal & accounting, commercial presentation, or company formation. At Biz Latin Hub, we do all of the above. We keep track of new market trends, including the renewable energy market in Brazil. Contact our Brazilian Country Coordinator, Bruno Bonassi, at [email protected] for more information, and see how his local team can assist.
Check out our short video below for a summary on why Brazil is an ideal place to do business.