New Brazilian Alternative Investment

To some extent, investors from the so-called 'developed' countries have always been interested in the BRICS nations (Brazil, Russia, India, China, South Africa), at least in recent times. There are big differences between them of course but more and more these countries are looked on as forming a new, emerging bloc of future economic 'powers' to watch.

Brazil is particularly interesting to many. For a start, it's a huge country; the world's fifth largest both in population and land area. It's also climbing quickly up the economic charts too; a few months ago it overtook the United Kingdom to become the world's sixth largest economy (in terms of total national GDP at least), and is aiming for fifth place by the end of the decade. Then it will be fifth on all three scales…an impressive array of statistics. The next target is to aim for fifth place and beyond in terms of actual GDP per person for Brazil's two hundred million citizens. This is a harder target, but one the country is determined to achieve over the next couple of decades.

Another very attractive feature is Brazil's huge potential. Significant natural resources of oil, coal and fresh-water and a burgeoning domestic industrial base all provide positive pointers for the country's development. But there's another aspect that is becoming more and more important. This is simply the investment potential for the so-called 'alternative' enterprises, often concentrating on sustainable products. These include charcoal for the rapidly-expanding steel industry. After all, construction projects for the 2014 FIFA soccer championships and the 2016 Olympic Games (both to be hosted by Brazil) have massively boosted demand for steel processing. The charcoal comes from trees, of course. To a much greater extent than before, the plantations of these are planned to be self-renewing ('sustainable'). International investment is becoming very interested in this one industry alone, among many others.

A connected concept is of course the timber used in building construction, either industrial or domestic. One need hardly mention in this regard the revolutionary 'Minha Casa Minha Vida' housing-ownership scheme for people of modest means. The sheer scale of the project is only now becoming fully apparent. The 'timber' aspect is something not often considered alongside the 'social' dimension but it does provide another perspective on alternative investment considerations.

It's expected that the demand for sustainable timber, for charcoal and other uses is set to rise enormously in the years to come. One reason is of course the domestic market but there's also another, probably vast one. Countries like India and China ( the world's two most populous) are increasingly hungry for raw materials of this and other kinds. What they can't produce themselves, they'll want of course to import from the other developing' nations, such as their BRICS partner, Brazil.

At the moment, it's possible to invest in sustainable timber plantations from as little as fifteen to twenty thousand US Dollars (or the local equivalent). While there can never be a 'sure thing' in the world of international investment, this particular opportunity is looming larger and larger.