Investment in Ceará looks set for a busy second semester as several large projects come to fruition in the state. The recent water transfer has opened new horizons for agriculture in Ceará and both the renewable energy and civil construction sectors have strong growth potential. These, together with a large investment package by the state, augur well for the rest of 2020.
Water transfer benefits investment in Ceará
Agriculture is set to be one of the major beneficiaries of new investment in the state. The recent completion of the transfer from the San Francisco River into Ceará guarantees the much-needed supply of water. Like many Brazilian states, Ceará suffers periodically from drought and the diversion of the river waters will alleviate this problem.
“From now on, we will have a constant and effective volume of water,” said Ricardo Coimbra, Regional Secretary for Economy. “This generates a level of certainty for the investor who can now count on irrigation systems.”
Coimbra forecasts strong growth for agrobusiness in Ceará based on the new supply of water. The region of Ibiapaba already has committed investment from a Brazilian company for new horticulture business. Dairy farming is another area earmarked for expansion in the state.
Property market investment
Despite recent confinement measures, the Ceará property market has strong potential for the rest of 2020. The state construction union, Sinduscon-CE, recently predicted new-build launches to the value of R$1 billion this year. This figure is down on the original prediction but analysts believe sustained demand from consumers with result in a good year for the market generally.
Record low interest rates are among the factors favouring property investment in Ceará. “Civil construction is currently in an excellent situation,” said André Montenegro, Vice-President of the Federation of Ceará Industries (FIEC). He added that financing property has never been cheaper because of interest rates, which in turn stimulate investment in the sector.
Renewable energy
The renewable energy sector forms one of the pillars of the Ceará economy and this too is set for further investment. Specifically, the state authorities expect wind power to expand over the next few months with investment from foreign companies.
All sectors are benefitting from the lower value of the Brazilian real, which adds to the country’s appeal since investors get more for their money. This is particularly true of investments made in real from American dollars.
Tourism potential
As is the case throughout the world, tourism in Ceará has suffered from the covid-19 pandemic. However, the state authorities are confident that the sector will recover throughout the rest of 2020 on the back of domestic demand. They expect this year to be all about staycations with Ceará as one of the prime destinations. The state consistently ranks as a favourite holiday spot for Brazilians.
Ricardo Coimbra believes Ceará has plenty of potential for tourism to expand. He recently forecast the growth of tourist resorts along the vast coastline, currently little developed. Some part of the Ceará coast have virtually no tourist accommodation and facilities at all. This is the case in the municipality of Trairi where The Coral beach resort is one of the very in the area.
State investment
To appeal still further to private investment, Ceará state has prepared a series of packages. They aim to stimulate the local economy by improving infrastructure and creating jobs for locals. And they contemplate major investment in civil works such as water treatment and sanitation.
State authorities expect to implement the packages throughout the rest of this year. And experts believe that as a result, they will act as a clear signal to private investors that Ceará is open for business.
(Source: Diario do Nordeste)
