British Business Embassy days - Brazil Business Day
The Brazil Business Day took place on 11 August 2012 at Lancaster House. The event celebrated the Olympics handover from London 2012 to Rio 2016 by focusing on high value opportunities in the Brazilian sports infrastructure sector.
Speakers included the Deputy Prime Minister, Nick Clegg, and the Vice President of Brazil, Michel Temer, UK Ministers for Trade & Investment, Sport & Olympics, Crime & Security, and the Foreign & Commonwealth Office, together with the Brazilian Minister for Sport, representatives from London and Rio Olympics delivery authorities, the Brazilian Chamber of Commerce, London & Partners and organisations such as Transport for London and VisitBritain, along with senior leaders of companies including BG and HSBC.
UK- Brazil trading insights were shared by speakers. Brazil is now the sixth largest economy in the world. Ernst & Young’s “Brazil Attractiveness Survey” provides further information about Brazil’s huge domestic market and growing middle class, its long-term economic growth trajectory and wealth of natural resources, and the opportunities in energy, infrastructure, tourism, ICT and manufacturing.
- Top Brazilian exports to UK include metals and meat. There are 10,000 students from Brazil in the UK as part of the Science without Borders programme;
- The UK is the largest European investor in Brazil and the fifth largest overall. Top UK exports to Brazil include vehicles and pharmaceuticals. UK exports to Brazil up 26% this year;
- Brazil offers political stability and respect for the rule of law and sanctity of contracts – very important in long term investments;
- Brazil has a very modern and flexible banking system, with a big trade finance market and easy access for SMEs. BNDES – the Brazilian Development Bank – has an important financing role for companies in Brazil. However, its tax system is still very complex;
- British Gas (BG), the largest UK investor in Brazil, has much of its investments with Petrobras in the development of the Santos Basin, which will produce 600,000 barrels a day by the end of the decade. BG is establishing its worldwide Research & Development centre in Rio and is committed to broadening its technical base in Brazil.
Brazil’s 2014 Football World Cup and Rio Olympics 2016 offer considerable opportunities for UK firms, including to win major infrastructure projects. These opportunities are being supported by the UKTI’s Host2Host programme.
- As well as developing the Olympic Park, Rio is planning to invest US$2.7 billion in transport infrastructure in bus and subway, and invest in the Marvavilha port regeneration and more hotels, with the number of hotels rooms in Rio to increase by 42% between now and 2016;
- The 2014 World Cup is expected to inject 112 billion Reis into the Brazilian economy. There will be 12 host cities focusing on creating legacy throughout Brazil, such as improved transport infrastructure, stadia, training centres, etc. Each stadium will have sustainability certificates and plans for legacy after the World Cup. LOC is responsible for monitoring all the construction work being undertaken;
- These events represent tremendous logistical challenges for Brazil, given the size of the country;
- Brazil will be using these events to reposition “Brand Brazil”, demonstrating modernity and bringing in more tourists;
- Aecom is applying its experience and lessons from London 2012 in developing the Rio Olympic site, taking into account the environment and location, especially the Mata Atlantic Forest. It is using Nomadic Architecture – modular design than can be taken down and reassembled elsewhere.
The press notice for the day detailed the Intellectual Property (IP) Office’s appointment of the first UK IP Attaché to Brazil along with other company announcements and a summary of the expected Olympics boost to business.