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Winning in Rio
Posted on June 18, 2015
Winning in Rio
16th August 2012, London: During the London 2012 Olympics, Rio Negocios, the business investment and facilitation agency for the city of Rio de Janeiro has been hosting a number of events in London to showcase the opportunities available to investors in this exciting city. On Friday 10th August 2012 an event was held at Somerset House, the home of Casa Brasil, to discuss with prospective business investors how to ‘win in Rio de Janeiro’.
Event attendees heard from a number of speakers as part of a panel discussion, including Marcelo Haddad, Executive Director, Rio Negocios; Fiona Mackie, Latin America Editor, Economist Intelligence Unit; Jorge Meneghassi, CEO, Ernst & Young Brazil; Christian Schindler, General Manager UK & Ireland, Lufthansa German Airlines; Candido Leonelli; Executive Director of Bradesco Bank
With both the FIFA World Cup 2014 and the Olympic and Paralympic Games in 2016, the opportunities for business investment in Rio are substantial. The panel examined why Rio has become such an attractive destination in the last 3-5 years and what it takes for foreign companies to succeed in this market.
With enormous investment going in to the city’s infrastructure to ensure it is ready for both events as well as a huge internal consumer market, Rio will be a destination for businesses long after the Games have ended.
The panel was in agreement of the importance of selecting the right advisory partners to support a move to Rio. Understanding where a new business fits in to the wider investment landscape is key as well as being able to define a business plan for the longer term. It was also seen as important to build a brand presence quickly whilst communicating clearly any differentiators that would be of interest to the local market.
Whilst much of the discussion focused on the tangible aspects that hosting the Games would bring to the city, it was also pointed out that softer benefits such as a sense of pride and new found confidence were also extremely beneficial to a city hoping to compete and win on a global business stage.
Below are some of the key quotes and facts which came out of the discussion. If you are interested in speaking to Marcelo or anyone else about the opportunities in Rio, please let us know.
Key quotes from the panel discussion
“The three questions we get time and again are, how much will it cost to set up in Rio, where should we locate and who should we talk to. All of these questions are what Rio Negocios exists to answer.” Marcelo Haddad, Executive Director, Rio Negocios
“In the EIU’s own research into Brazil we found that Rio scored at least double the national average on key performance benchmarks and in particular for its support structure for foreign investment in which it scored a perfect 100.” Fiona Mackie, Latin America Editor, Economist Intelligence Unit
“Rio has large banks which can provide capital investment and can offer lines of credit to FDIs. Brazil is receiving almost $50bn per year in investment at the moment and this is continuing to grow. Just because of 2016 games, GDP in Rio is expected to grow by 0.5% this year and next year it’s predicted at 4%.” Candido Leonelli; Executive Director of Bradesco Bank
“We are very positive about long term development in Rio. New infrastructure will only attract more FDI. The new airport link is perfect for us and will make visiting Rio and doing business there easier. We see Rio as one of best performing locations in Brazil.” Christian Schindler, General Manager UK & Ireland, Lufthansa German Airlines
“E&Y did a survey on how people think Brazil will look in 2020. They said Brazil would be a leader in the energy sector, substantially improved infrastructure and a leading green economy. Rio will be central to all three of these areas and is therefore the perfect place to invest.” Jorge Meneghassi, CEO, Ernst & Young Brazil
Key facts about ‘Winning in Rio’
Investment and income
- R$56 billion predicted extra income generated due to the sporting events
- 57,900 temporary jobs and 37,000 permanent jobs to be created in the sporting industry
- Total investment of US$18 billion being made in sporting events related projects
Connected city
- 2 seaports, 3 commercial airports
- USD 8 bn planned investments in transportation (+ 140 Km of BRTs / 1,300 new buses)
- Mass transportation system growth from 16% to 63% serving a further 700k people
- 259 weekly direct international flights (number in January 2012)
Eyes of the world are on the city
- FIFA Confederations Cup – 2013
- FIFA World Cup – 2014
- City’s 450th Anniversary – 2015
- Olympic Games – 2016
Business centre
- 50% of Brazilian listed companies HQ’d in Rio
- More than a quarter of revenues earnt by Brazilian companies come from Rio
- Significant number of international companies based in Rio – Diageo, GE, IBM
Access to funding
- Through pension funds, asset managers and PE managers Rio has access to more than USD 400 bn
- Rio held 4th place in global rankings for FDI (2010 – according Financial Times) with USD 7.27 bn secured in that year alone
Access to skills
- Dedicated city zone for R&D activity with operations run by BG, Siemens, Halliburton
- 4 of the top 9 Brazilian universities are based in Rio city (in courses of Engineering, Physics, Chemistry, Maths, IT and Business)
- Rio universities provide significantly more grade 4/5 courses than any other Brazilian city (in courses of Engineering, Physics, Chemistry, Maths, IT and Business)
Public/Private commitment
- Rio held 4th place in global rankings for FDI (2010 – according to Financial Times) with US$7.27 bn secured in that year alone
- USD 128.9 bn private/public investments are planned before 2020
- Major public/private partnerships have helped improve the security situation
Click here to download the Media Bulletin – “Winning in Rio” in word format