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Franklin Templeton Says It Is Time To Invest In Brazil

The biggest country in Latin America

Like other countries, Brazil has been struggling because of the covid-19 pandemic that hit us since the beginning of 2020. A rising number of daily deaths and a public debt that is skyrocketing might be two of the first things that possible investors might consider to refuse the country as an option. International investors look for safety when making decisions about where will they put their money. But this is about to change because Brazil is a huge territory with a population of about 210 million people. We are expecting e-commerce investments and there are so many opportunities for commodities exportation. Interesting options are arising from the current crisis and the Infra Week held in April 2021, ended up with 10 billion in investments.

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Infra Week was inaugurated during a Live Stream with the Minister Of Infrastructure Tarcísio Gomes de Freitas.

Infra Week was directed to the concession of 28 assets of the Federal Government

The assets were destined for the private initiative, guaranteeing the amount of 611,9 million reais in investments from the selling of Brazilian terminal stations. At the end of three days of Infra Week, it was possible to guarantee 10 billion reais in infrastructural investments. Important areas for logistics and distribution of combustibles in the Northeast region of Brazil such as the terminal stations in Itaqui were targeted. The terminal stations serve as important storage places for petroleum derivatives capable of handling 5.9 tons of the oil-byproducts.

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In the South Region, the terminals are related to general cargo and wood-derived products.


Investment opportunity that should be checked

According to Claus Born, Institutional Product Specialist at Franklin Templeton in an interview he gave to the site Investing.com:

There’s a very wide range of investment opportunities, it’s big and liquid. Compared to the region and to many other Emerging Markets, Brazil is definitely one country that we should look at […]

In the latest Weeks optimistic economical reports about developing countries

The data are mostly found among the North-American investors, that are providing optimistic results. Even with the fact that we are still struggling with the pandemic of covid-19. At the moment we are dealing with a Parliamentary Commission of Inquiry that is investigating possible misconducts or even crimes of the current negationist Brazilian politics that led to the destocking of vaccines and supplies to combat the covid-19 pandemic. Even though it might seem difficult in terms of political peace, the country just proves how much of a consolidated democracy has been instituted in Brazil.

Foreign investors are expecting more

The plans of more privatizations, concessions that can be faster, are still expected for 2021. This is because the current Government wants to diminish its public debt and start leading fewer public Companies. Even though many of those Companies are considered lucrative, the policies directed to privatizing such businesses are still working. The pandemic hasn’t stoped the will from the Brazilian Government to continue with the privatization plans and policies. So we might be expecting more events and political approval towards foreign investors.

Conclusion

In this article, we are talking about current auctions and events that led foreign investment companies to consider Brazil as a major player. This is happening even during the current situation of the pandemic, and the money raised from the privatizations might also be partially used for Health and combating covid-19 during the third quarter of 2021, also during the year 2022. Did you like our article? Don’t forget to follow our page on Linkedin and check interesting facts about investing in Brazil and economics in general.

References

FINANCE.YAHOO.COM. Is it time to invest in Brazil? Franklin Templeton says ‘yes’. Available at: <https://finance.yahoo.com/news/time-invest-brazil-franklin-templeton-150040808.html>.

GOV.BR. Com leilão de terminais, Infra Week garante R$ 10 bilhões em investimentos. Available at: <https://www.gov.br/infraestrutura/pt-br/assuntos/noticias/com-leilao-de-terminais-infra-week-garante-r-10-bilhoes-em-investimentos>.