The “Business Guide to Brazil” presented by the Embassy of Italy in Brasilia, GM venture and Kpmg
Health bulletins dominate the chronicles of Brazil; the country is plagued by Covid, yet there are clear signs of recovery in some sectors. For some time now, international investors have been monitoring and focusing on this Latin American country.
A guide to Italian entrepreneurs was presented in recent days. The goal is to offer a simple and quick-to-consult tool, complete and concretely useful for their strategic decisions within the Brazilian market. Agribusiness, oil & gas and sanitation are confirmed as the most vibrant sectors.
The Ambassador of Italy in Brazil, Francesco Azzarello, the Manager Director of GM Venture, Graziano Messana, and the Partner Audit and Head Italian Desk of KPMG Brazil, Luca Esposito, presented it in recent days during a virtual event moderated by President of LIDE Italia, Juan Barberis. This is the Brazil Business Guide. Italian entrepreneurial presence, mapping of opportunities and market entry strategy, carried out by the Italian Embassy in Brasilia and by GM Venture with the collaboration of KPMG.
The objective of this guide is to offer Italian entrepreneurs a simple and quick reference tool, complete and concretely useful for their strategic decisions within the Brazilian market. The investment opportunities for Italian companies are illustrated through a territorial vision and a sectoral focus, which facilitate the reader in formulating food for thought on possible future initiatives. The text originated thanks to the consultation of over 700 specialized websites as well as the collaboration of institutional bodies, organizations and associations that have made data and information available. An important chapter is dedicated to the instruments of economic diplomacy and the presence of the Italian System in Brazil which, with the offices of the Embassy in Brasilia, the consular network, the Bank of Italy, the ICE Agency, SACE-SIMEST, ‘ENIT and the Italian Chambers of Commerce abroad, manages to provide concrete support to the world.
The regulatory aspects
Finally, the guide contains two annexes: an updated and synthetic legal guide, which provides useful information on aspects relating to company rules, foreign capital, tax aspects, competition, public procurement legislation, intellectual property, labor law and visa regulations. Compared to the 2019 version, the legal guide contains two new chapters that illustrate the recent news dictated by the pandemic. The Guide, as mentioned, registered the presence of 968 branches and production plants until June 2020. The geographical distribution of the companies reflects the economic history of Brazil: about 90% of the companies are concentrated in the south and south-east regions (60% in the State of Sao Paulo alone), characterized by a consolidated level of industrial development. “The intense teamwork between institutions and the private sector has led to an update of the latest edition of the guide, enriched with new content and data that take into account the acceleration of the digital transformation process and the changed socio-economic context caused by pandemic ”, underlined Ambassador Azzarello.
The resilience of Brazil
“Brazil is once again demonstrating its ability to quickly recover from crises and in most sectors the economy has already returned to pre-covid levels. Today, more than ever, the country, with an exchange rate that encourages investments, offers itself as a bank for Italian companies looking for growth opportunities. The privatization and concessions programs are interesting, as well as new opportunities in the oil and gas and sanitation sector ”, commented Graziano Messana.
Finally, Esposito explains that “the Brazilian economy despite the epidemic and thanks to the development of strategies and containment measures, continues to grow in some strategic sectors, such as agribusiness where exports have reached record values, together with sales of the trade balance. Competitiveness and growth in sales abroad should continue, according to forecasts, also in the coming years “.