The article today on the topic of opportunities and investments in Brazil on the daily Avvenire.
The Brazilian economic situation is in deep evolution after the elections of last October have consecrated President Jair Bolsonaro, a debated and widely discussed figure, who promised a massive privatization plan of over 400 state-owned companies during the election campaign. The new economic course, as announced, will also go from a gradual opening abroad of the state, with a gradual rapprochement with the United States, and from the reduction of the fiscal deficit. “We come from the deepest crisis of the last 50 years, with rates of almost -3.5% of GDP in 2015 2016, inflation of over 10% and interest rates in real terms of real economy of 20% to month, “explains Graziano Messana, founder of Gm Venture. “The economy has now started to break out of the recession, and we expect + 1.5% of GDP and + 2.5% for 2019”.
The idea of the new government is to redesign the economic plans, starting also from the geography of the alliances. “In a recent speech, the president said he wants to favor relations with the US, Israel and Italy. “, continues Messana, who in Brazil with Gm Venture manages the Italian branches of large companies and SMEs, for a total of about 30 companies. The attractiveness of the country is strong, “the exchange rate is a point in favor”, a call for those who want to invoke. About 1,100 Italian companies are now present in Brazil and according to Messana the current political and economic conditions could help to create new possibilities. The sectors that identifies being with the greatest potential are agribusiness, Internet of things (IoT), fintech and furniture.
“Agriculture grows historically by + 4% per year, companies are looking for innovation and technologies that can be applied to their sector In Italy there are companies that have interesting solutions but that do not have an outlet market.
Then there is the IoT. Among the areas of application “health, that is the whole hospital that does not have an integrated system between the private and public world and insurance for repayments. Elesmart city: in Italy we have both experiences and technologies, they do not, and have appetite of industrial domotics for example, on the security front, the country is insecure but cannot use only armed guards, it needs technology, it serves general new generation security “.
Fintech side, “there are Italian companies that have developed alternative payment systems, micro-loans between people, and they are interested in understanding how to enter Brazil with a perspective in the sector that in the next ten years is exploding”. Finally, there is the large furnishing and furnishing compartments sector, especially for offices, a field still to be explored where only 13 Italian companies are active. For Messana, the winning strategy to break through is to “adapt to the specific demand of the country, without selling only its own products from the collection at the same price as the Italian price list”.
The Brazilian market “is complex and dense with bureaucracy: we provide the right support to encourage entry, but on 1 project that arrive, we discard 8. Only strong projects are winning and able to compete”.