Infrastructure transformation

we must think about the country's transition to an investment promotion model, with broad participation of the private financial sector Altair Rossato, Deloitte Brazil's CEO

Welcome to another edition of Mundo Corporativo, Deloitte’s electronic magazine which shares information and analysis to decision-makers and opinion leaders.

Despite the economic difficulties in recent years, Brazil is still a relevant market in the plans of large multinationals and global investors. We have clearly seen that the local and international business agents have systematically moving away from the most recent mishaps of the Brazilian situation, putting into practice their own development agenda, which tends to promote solutions to the country.

However, private investment requires long-term guarantees and, above all, legal certainty, which goes beyond overcoming specific cycles of political and economic instability.

When we look at the Brazil’s infrastructure context, with its historical problems that directly affect national competitiveness, having better regulatory frameworks helps to provide that assurance, but it is not enough. We must think about the country’s transition to an investment promotion model, with broad participation of the private financial sector.

That is, it is not just the mapping of concessions and auctions. It is necessary to identify opportunities and build solutions in which the private sector can directly contribute to the generation of business and market organization, so that it becomes attractive to investments. Even for their gaps, there are many sectors that offer prospects in this sense: urban mobility, oil and gas, mining, power, railways, airports, telco and sanitation.

To properly address the infrastructure problem in Brazil, we must prioritize certain actions. The first is the integration of all public-sector spheres, promoting better synchronization of investments, in the operational arrangements and the establishment of regulatory frameworks – especially among the federal, state and municipal governments.

Another key measure is the establishment and consolidation of new regulatory frameworks, in several infrastructure sectors. Clearer rules leave sectors such as power very attractive in the eyes of long-term foreign investors – precisely those most resilient to instabilities and who have consistent projects for our country’s development.

Draw inspiration from international experiences of countries that have established solid institutional foundation for private investment and improve the mechanisms that ensure good governance and sustainability are also part of the recipe to boost business in this area.

This issue of Mundo Corporativo presents contents that address these paths to encourage investments in infrastructure, a key sector for the resumption of the economy’s development.

We are convinced that our enormous natural and human resources potential, together with this set of structural measures, can create a favorable and reliable environment to promote business and a consistent economic recovery in Brazil.

Good read!