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nearly 80% of its energy in hydroelectric installations. However, due to Brazilian
society’s resistance to plans for constructing further hydroelectric dams,
the government has considered increasing the use of solar power, as the country’s
demand for energy is expected to double within the next 12 years. This
is why Germany is trying to support its companies by winning contracts for
the supply of solar technologies 62 . Brazil expects Germany to help it finance
some of these investments, and so it agreed to the participation of experts from
the German Development Aid Company (Gesellschaft für internationale Zusammenarbeit)
as advisors in the transformation process. So far, Germany has invested
€900 million in loans to support these processes, hoping that this will
make it easier for German companies to win contracts by. In spite of the difficulties
associated with investing in Brazil, many German companies are conducting
their business on this increasingly important market. One example
is Siemens, in whose turnover figures Brazil ranks 7th. The company hopes
to double its financial result to over US$5 billion within 5 years. For this to be
possible, Siemens will double its investments to US$1 billion 63 . German companies,
just like other foreign corporations, are aware of certain limitations on
the Brazilian market, among the most serious of which are high taxes, the wide
fluctuations of the Brazilian currency exchange rate, and the rapidly growing
salaries. On the other hand, Germany sees numerous assets in Brazil, which
include its great infrastructural needs and the prospects for a rapid growth of
the middle class.
There is growing interest on the part of Brazilian investors in expanding their
business on the German market, as demonstrated for instance by the acquisition
of steelworks in Thuringia by the Brazilian company CSN. This has been
possible thanks to the strengthening of the Brazilian currency which has facilitated
the purchase of foreign assets. Despite this trend, there has been a noticeable
disproportion between the scale of investments in Germany’s favour.
Around 50 Brazilian companies operate in Germany, employing around 2000
individuals. These companies have mainly invested in the machine building,
steel and agricultural sectors 64 .
62
Frank Specht, Solarenergie: Ein neuer Boom in Südamerika?, Handelsblatt, 30 May 2012, p. 22.
63
Axel Höpner, Schwieriges Brasilien, Handelsblatt, 30 May 2012, p. 22.
64
http://www.nachhaltiger-reisen.de/news/news-detail/immer-mehr-brasilianische-firmen-investieren-in-deutschland/
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