As head of the Panama-based Oxford Consulting Group, I oversee partnerships with multinational corporations, seeking out business and investment opportunities in sectors such as real estate development, healthcare, technology, and natural resources. One of the most vibrant emerging economies in Latin America this past decade has been Brazil, which continues to exhibit strong growth and attract international investors. Brazil today boasts a stable, democratic government, with inflation that has been brought under control.
Brazil’s size and geographic diversity gives it well-known natural advantages in raw materials, renewable energy, agriculture, and oil. The technology sector is also developing beyond the aviation industry, where Brazil has held a competitive market position for decades.
Brazil’s elected officials are overseeing university partnerships, creating technology centers designed to propel Brazilian software, semiconductor, Internet infrastructure, and consumer electronics industries onto the center stage. An example of this is the Universidade Federal de Minas Gerais in Belo Horizonte, which oversees the Center for Technology Innovation and Transfer.
Many high tech innovations are being developed for unique applications in Brazil. In January, the Porto Alegre semiconductor manufacturer CEITEC successfully completed a one-year field trial of a radio-frequency identification chip. This device can be implanted in grazing cattle, allowing for positive identification when they roam. Manufacturing investment is heating up in Brazil at the moment as well. In April, Foxconn, the Taiwanese contract manufacturer that produces many Apple products, announced its intention of exploring a $12 billion investment in a Brazilian plant to produce digital displays. This localization strategy will circumvent high tariffs Brazil places on electronics imports, as well as giving Foxconn geographical proximity to the most important South American markets. Notably, it represents a market expansion, as it does not replace existing Foxconn facilities. The potential of Brazil alone is enormous: with over 200 million people, it constitutes the 5th largest market in the world.
In my opinion, the opportunity for investment in emerging markets such as Brazil has never been brighter. In particular, economic attention will be focused on the country when it hosts both the Olympics and the World Cup in the next decade. The infrastructure benefits of these events will be enormous, and savvy investors stand to benefit considerably. Visit Oxford Consulting Group’s website at http://ocgglobal.com for information on our international financial services.