Nearshoring to Brazil: Unlocking Opportunities for Foreign Investors

Moderator:

Roberto Pary
Partner, Madrona Fialho Advogados

Speakers:

Rafael Bologna
Partner, IGC Partners

Rodrigo Carvalho
Partner
Winston & Strawn LLP

Alexandre Pierantoni
Managing Director & Head of Corporate Finance
Kroll Brazil

International geo-political tensions and a much more challenging business and trading environment are redefining investment decisions. Near and ally shoring, are most recent themes and strategies that companies are implementing, in addition to the green shoring. This is affecting globally M&A activity and where companies and investors are allocating funds and production sites. According to a study by Deloitte, the nearshoring market in Latin America is poised to grow at a compound annual growth rate (CAGR) of 10.3% from 2021 to 2025. Furthermore, estimates from the Inter-American Development Bank (IDB) suggest that nearshoring could boost global exports from Latin America and the Caribbean by $78 billion annually. According to international, and local investors, Brazil is uniquely positioned for benefiting with this strategies, being a secure and independent country for investments in the Americas region. The country continues to do its homework addressing the fiscal reform, interest reduction and aiming a +2% GDP growth in 2024. Government also defined a zero fiscal balance target for 2026. Foreign investors are ramping up in investments in Brazil not only in the capital markets but also in M&A, representing more than one third of the activity in 2023.