Brazil is expanding its investment horizon in Peru, exploring new sectors and opportunities beyond Olmos and Chancay. In recent years, Brazil has consolidated its presence in Peru as one of the leading Latin American investors, ranking third in the region regarding capital invested in the Andean country. From 2003 to the first half of 2024, Brazilian companies have contributed around $3.929 billion to the Peruvian economy through 50 projects executed by 34 companies. However, this dynamic has been affected in recent years due to the corruption scandal known as Lava Jato, which has tarnished the reputation of some major Brazilian companies abroad. To overcome this crisis and reactivate the flow of investments, Brazil and Peru seek to strengthen their trade ties and identify new sectors for investment.
Restructuring Peru-Brazil Trade Relations
Despite a decline in bilateral trade in 2024, business leaders from both countries, supported by the newly created Peru-Brazil Chamber of Commerce (CAMBRAPER), are determined to revitalize their commercial relations. This organization was founded in São Paulo in early 2024 and currently has 50 members, intending to reach 200 members by 2025. The mission of CAMBRAPER is to promote collaboration and improve understanding between Brazilian and Peruvian entrepreneurs, generating new business opportunities and exploring alternative investment sectors.
The trade balance between the two countries reached nearly $5 billion in 2023 but has shown a significant drop in 2024, with an accumulated value of only $3.1 billion through September, representing a 17% decrease compared to the same period the previous year. This reduction is attributed to external factors, such as the devaluation of the Brazilian real against the dollar and other global economic challenges. However, the drop in trade has motivated leaders from both countries to seek new strategies to revitalize economic cooperation, which includes Brazil’s commitment to diversify its investment in non-traditional sectors within Peru.
Traditional Sectors of Brazilian Investment in Peru: Mining and Infrastructure
Historically, Brazilian investment in Peru has been concentrated in key sectors such as mining and infrastructure. These sectors have been desirable to Brazilian investors due to Peru’s abundant natural resources and growing need for infrastructure modernization. This investment includes government projects and collaborations with Brazilian companies to expand strategic infrastructure such as the Chancay Port and the Jorge Chávez International Airport in Lima. These initiatives have enabled Brazil to develop infrastructure that facilitates international trade and improves connectivity actively.
Diversification of Investments: Logistics, Real Estate, Construction, and Technology
Brazilian interest is expanding into areas other than traditional sectors, particularly in response to Peru’s growth opportunities in various industries. Among the sectors attracting significant interest are logistics, real estate, construction, and technology. These areas offer investment opportunities that have been less explored but hold considerable medium—and long-term growth potential.
The logistics sector, for example, is crucial in growing commerce as it facilitates the transportation of goods within Peru and to international markets. With its strategic location on the Pacific coast, Peru is a crucial point for exporting and importing products to other Latin American countries and Asia. Brazilian investors, well aware of the importance of robust logistics infrastructure, see Peru as a viable destination for projects that can improve the transportation and storage of goods.
Meanwhile, the Peruvian real estate sector has experienced steady growth in recent years, driven by sustained demand for housing, office spaces, and commercial properties. The entry of Brazilian investors into this sector could increase supply and raise construction and design standards in the Peruvian market. At the same time, the construction sector, which has benefited from Peru’s sustained economic growth, represents an attractive opportunity for Brazilian companies with extensive experience in infrastructure projects and commercial and industrial buildings.
Finally, technology has emerged as an innovative investment sector, driven by Peru’s growing digitization and the government’s support for digital transformation. Brazilian companies with experience in information technology, telecommunications, and automation could significantly contribute to this sector by promoting adopting digital solutions that enhance competitiveness and efficiency in various industries.
The Growing Interest in Renewable Energy
The renewable energy sector is another area of increasing interest for Brazilian investors in Peru. With extensive experience in hydroelectric and bioenergy generation in their home country, Brazil is well-positioned to offer sustainable solutions in Peru, which also seeks to reduce its dependence on fossil fuels and diversify its energy sources. Wind and solar energy projects have gained momentum in Peru in recent years, and Brazilian investors see these initiatives as an opportunity to apply their expertise in clean energy and contribute to the sustainable development of their neighboring country.
Challenges and Prospects of Brazilian Investment in Peru
Despite the promising opportunities, Brazilian companies wishing to expand into Peru face significant challenges. Logistical difficulties and regulation differences between the two countries can present obstacles, especially in the real estate and infrastructure sectors. Additionally, the volatility in exchange rates, particularly the recent devaluation of the Brazilian real, could affect the profitability of investments.
Political and economic stability in Peru is also a determining factor for investors. Over the years, the country has achieved remarkable economic growth, but its internal political situation has shown fluctuations that sometimes generate uncertainty among foreign investors. Nevertheless, diversifying investments into less traditional and high-demand sectors is an effective strategy to mitigate risks and capitalize on the strengths of the Peruvian market.
Collaboration and Incentives: The Role of Chambers of Commerce and Government Support
Creating the Peru-Brazil Chamber of Commerce (CAMBRAPER) has significantly facilitated Brazilian investment in Peru. The chamber provides a platform for entrepreneurs from both countries to exchange knowledge, explore opportunities, and collaborate on joint projects. In addition, CAMBRAPER has expressed its commitment to reaching 200 members by 2025, signaling a solid expectation of growth in collaboration between the two countries. Government initiatives also support this effort to improve the investment climate and strengthen trade relations.
Future of Commercial Relations and Brazilian Investment in Peru
With projected growth over the next few years, Brazilian investment in Peru aims to expand the Peruvian economy and generate mutual benefits through strategic collaboration in critical sectors. Diversification into industries such as logistics, construction, technology, and renewable energy represents an important step toward a more robust and less mining—and infrastructure-dependent commercial relationship.
In the next 24 to 48 months, Peru and Brazil are expected to continue strengthening their economic ties, leveraging Brazilian expertise and capital to drive growth in high-potential sectors of the Peruvian economy. Bilateral collaboration, supported by institutions like CAMBRAPER and favorable trade and investment policies, points to a future in which both nations can benefit mutually and strengthen their positions in the South American market.