Brazil’s growth programme opens JV opportunities for SA

Brazil will invest $90 billion (R734 bn) in a Growth Acceleration Program (PAC II) that opens significant joint venture opportunities for SA companies. “Power, roads, railways and urban transportation, ports and airports – both of which are flagged for privatisation – are the biggest areas of infrastructural investment by the Brazilian government,” Julio Brandt told delegates at the BRICS Country presentations held at Saitex in Johannesburg last week. Brandt heads up the southern Africa operations office of Odebrecht, Brazil’s third largest private group. According to Brandt, the Airports Company South Africa has already been appointed to assist with the redevelopment of Sao Paolo International Airport. Although significant efforts are being made to improve the ease of doing business between the nations, South African companies do encounter stumbling blocks, particularly SMEs trying to negotiate the bureaucracy and the different way of doing business. Brandt’s advice is to try to do business with other businesses, not politicians. “A Brazilian company interested in doing business with you will facilitate the relationship,” he said. For Brazilian companies there are also challenges, he added. “Money and finance aren’t the issue for Brazilian companies wishing to invest in infrastructure projects in South Africa, it is the difficulty in obtaining finance guarantees which is the biggest obstacle for companies such as ours.”