2012 sees Increased British Investment in Brazil

There are many links, both historical and contemporary between Brazil and Britain. For some time now these two important trading partners have been steadily improving their commercial and economic relationship. As of last year for example, Foreign Direct Investment (FDI) by Britain in Brazil was well into the top ten of overseas countries investing in the BRICS giant. In addition, Brazil received over US$2.5 million worth of UK exports in goods and services. Clearly, interest in Brazil's economic growth is growing, developing on the back of mutual other general interests such as the Olympic Games (London in 2012, Rio in 2016) and increasing tourism in both directions and so on.

It's worth noting by the way that the other direction of investment is also very important. After all, the relationship is very much a two way street. One interesting fact is that Brazilian input into Britain is rapidly growing too (in fact it has actually exceeded UK to Brazil in each of the last three years).

However, that may well tilt again in the other direction, especially with the massive investment, both private and public, in two massive events or projects in Brazil over the next four years, hosting the FIFA soccer championships in 2014 and of course the (aforementioned) Olympics two years later. These two international celebrations will together attract infrastructure investments of over $120 Billion, not counting the secondary investment in subsidiary projects. Britain and British companies have an important slice in all that, as they do indeed in the whole Brazilian economy.

As of today, UK companies which are notable successes in Brazil include such names as Shell (a longstanding investor in Brazil), Unilever, Experian, BP (a major player in biofuel technologies), Wellstream (flexible oil-industry pipework), the BG Group (the main overseas partner of Petrobras), Diageo (alcoholic drinks) and GlaxoSmithKline (via its links with Fiocruz to instigate new medical advances). Plus of course HSCC Bank, GKN car parts and well-known bankers Lloyds of London.

On top of all this there are two names from Britain's renowned industrial heritage which are also helping Brazilian expansion under their new flag, the Dutch one. This follows Netherlands conglomerate AkzoNobel's takeover of them; they are of course Courtaulds in 1998 and ICI in 2008.

The history here is that Courtaulds opened its marine and protective coatings factory in Rio de Janeiro nearly ninety years ago – just before the erection of the city's famous statue of Christ the Redeemer. On the other hand ICI's strong Brazilian business was itself a main reason for the company's takeover by AN. Between them, these former UK-owned operations account for well over half of AkzoNobel's €950m Brazilian sales. Ton Buchner, chairman and chief executive of AkzoNobel, says about Brazil's expansion: "I have been coming to Brazil regularly since 2000 and it has changed significantly."

The launch of the Minha Casa Minha Vida social housing programme by the Brazilian government back in 2009 has opened the door for basically anyone to invest in Brazil though this scheme and more and more Britons are choosing this safe and proven way to make short term secure investmentsin the country, Minha Casa Minha Vida is set to run for many years so there is a lot of money to be made through the programme and with the upcoming World CUp in 2014 and the Olympic Game in 2016 investment in teh country is set to rise even more, not only in social housing but in other areas. These and other examples contribute significantly towards the burgeoning British-Brazilian investment partnership. Certainly, long term investment and short term investment from the original 'Anglo-Saxon nation' can find a great deal to attract them in the world's largest Portuguese-speaking one!