Post-COVID Recovery: Investment Opportunities in Brazil (IADB-BR-T1511)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
national coverage
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Inter-American Development Bank (IADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Goverment of Brazil
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 0.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IADB website

Updated in EWS Jul 29, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

This project will support the Brazilian government in developing a complementary investment attraction and export promotion strategy. Furthermore, the main objective of this project is to support the Brazilian government and its subnational entities in the development and implementation of activities (i.e., Brazilian Investment Forum - BIF, business matchmaking, digital roundtables, etc.) leading to investment attraction and trade openness at national and sub-national levels.

2022 started with the world in the midst of an asymmetrical recovery, where in some countries COVID-19 infection rates have fallen significantly, while in others, the virus remains difficult to control. But whether governments are actively managing outbreaks or returning to normalcy, economic recovery is central to their forward-looking agenda.

The effects of Russia's invasion of Ukraine have caused more profound shocks. It has disrupted markets in energy and, crucially, food in ways which highlight the need for more broadly based supplies. For these reasons, the IMF recently revised and reduced its projection for economic growth. Global growth is now projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January.

According to a November 2021 McKinsey survey, regionalization remains a priority for most global companies and almost 90 percent of respondents expect to pursue some degree of regionalization in their supply chains during the next three years. BlackRock's annual letter to shareholders spotlights Brazil as one of the most direct beneficiaries of this Global Value Chain (GVC) realignment. As stated by the Economist, decision-makers are increasingly concerned that GVCs should be robust, not just efficient. Governments and firms are constantly reminded that resilience also comes from diversification.

Brazil can provide many of the solutions that the region needs right now from realigned and resilient supply chains to abundant, solid, and sustainable investment options across many sectors. Economic growth resumed in Brazil in 2021. GDP grew by around 4.6% in 2021, outweighing 2020's 3.9% decline. Recent trade data estimates that Brazil's exports grew almost 35% in 2021. The Brazilian economy is also performing well in 2022. The economy grew 1.0% in the first quarter, unemployment fell to 10.5% (down from 14.8% during the pandemic) and business and consumer confidence are increasing. Also, after the strong retraction of Foreign Direct Investment (FDI) in 2020, international investors have resumed their appetite for investing in Brazil.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

IDB

 

ACCESS TO INFORMATION

You can submit a request for information disclosure at:

https://www.iadb.org/en/access-information/information-request.

 

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment.  You can submit a complaint by sending an email to MICI@iadb.org.  You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

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How it works