Brazilian Investment Boost from Obama | Obelisk International

The forthcoming visit from the US President to Brazil will undoubtedly boost investment in Brazil. President Obama is expected to offer substantial funds for Brazilian investments, particularly infrastructure.

In his first visit to Latin America, President Obama is due to visit Brazil in mid March. While the President is there, he is expected to outline major financing for joint infrastructure projects. The total funds for Brazilian investments could run to hundreds of millions of dollars, although the final sum has yet to be unveiled.

This major US investment in Brazil will allow US companies to take a greater part in the boom in construction in Brazil. A large part of this boom, clearly visible in projects for infrastructure and real estate in Brazil, is due to the 2014 World Cup and 2016 Olympic Games preparations.

US Investment in Brazil

Concrete details regarding US investments in Brazil are still not finalised, but it’s clear that funds will come from the US Export-Import Bank (Ex-Im). In terms of specific investment in Brazil, these funds will focus on roads and similar infrastructure.

Ex-Im manages investment funds for US companies and subsidiaries, and in the last fiscal year, a record US$24.5 billion was approved. Ex-Im has cooperation agreements with banks in several developed countries, but an agreement with Brazil would be Ex-Im’s largest venture in emerging markets.

Ex-Im see Brazil has a major market for investment. “Brazil is a place where we see major promise, a lot of potential for cooperation,” said Ex-Im Chairman, Fred Hochberg speaking to Reuters. He also states that investment in infrastructure in emerging markets is “growing at a level we’ve never seen before”.

Joint Venture Investment

Brazil also presents the opportunity for the US to enter Africa. During his visit to Brazil, Obama is expected to explore the possibility of joint ventures between the US and Brazil in Africa. Both Brazil and the US are keen to slow down the Chinese influence in African countries by investing heavily in the continent.

Brazil already has an African presence and the US hopes to draw on this to get a foothold in the continent. Funds for this would come from Ex-Im and BNDES, Brazil’s government-backed development bank.

Boost to Social Programmes

Brazil is actively looking for more US funds for Brazilian investments and trade as a means of helping eradicate poverty by 2020. Brazilian President Dilma Rousseff has promised to rid the country of poverty over the next decade and is seeking support to achieve this aim.

Investment in Brazil from the US will undoubtedly help Dilma’s objective, particularly in infrastructure. Along with the social housing programme, Minha Casa Minha Vida, infrastructure improvements form the mainstay of the Brazilian government’s bid to reduce poverty.

For Obelisk International, President Obama’s visit confirms Brazil’s growing importance on the world stage. It also underlines Brazil’s potential as an investment destination and the growing interest from foreign investors, particularly North American.

Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
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