Market Opportunities

Brazil transitioning to fintech

23 January 2025


Technology and renewable energy opportunities abound in Latin America’s power economy

Brazil is the largest market in Latin America and the world’s 9th largest economy, making it a prime choice for Hong Kong exporters and traders. The HKTDC has been active in Brazil for over 30 years and established the São Paulo office in 2001, the third office in Latin America after Mexico City and Santiago.

Hong Kong Means Business caught up with São Paulo Manager Renato Oliveira to learn how Brazil is transforming into the tech powerhouse of Latin America.

Why should Hong Kong businesses be interested in Brazil?

With a population of 212 million and income per capita around US$9,000, Brazil is firmly in the group of middle-income countries. Economic growth in 2023 was 2.9%, and the IMF projects growth of 3% this year.

Major urban centres like São Paulo, Rio de Janeiro and Minas Gerais, along with other thriving cities, offer opportunities for Hong Kong exporters to distribute niche, affordable and innovative products through e-commerce as well as offline channels.

Brazil is a key trading partner for Hong Kong in Latin America. In 2023, Brazil was Hong Kong’s largest source of imports from Latin America and the second largest market for exports after Mexico.

Moreover, Brazil hosted the G20 presidency in 2024 and will host COP30 this year. Many anticipate the rising importance of Brazil on the world stage.

Most people know Brazil as an exporter of agricultural products. Is that still the case?

Yes, Brazil continues to be a leading exporter of soybeans, meat and coffee. Brazilian food company Frimesa has been exporting pork and dairy products to Hong Kong for over three decades and continues to be attracted by Hong Kong’s logistics advantages, even as they now export to over 30 markets. The company is planning to focus its logistics hubs in Hong Kong, Vietnam and South Africa.


HKTDC Research staff met with Brazilian meat exporter Frimesa during a 2024 market visit


With the recent changes to Hong Kong’s liquor tax, there are opportunities for Hong Kong traders to promote cachaça - distilled sugarcane juice - across Asia.

Brazilian companies are also making headway in foodtech and supplements. A recent example is Yosen Nanotechnology, which produces ingredients for nutraceutical products. They were a runner-up in the 2022 innovation competition for start-ups sponsored by Macao SAR Government and have begun cooperation with companies in Macao and Zhuhai to explore the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) market.

These examples show how Hong Kong businesses can leverage Brazil’s agricultural resources and research to find opportunities in areas, such as logistics, trading and biotech.

How is Brazil’s economy changing?

Brazil is home to over 12,000 start-ups and has produced 24 unicorns, more than half of all unicorns in the region. The first start-up to achieve unicorn status was the ride-hailing company 99, which was acquired by Didi Chuxing. Another notable unicorn is food ordering and delivery platform iFood.

São Paulo has by far the most valuable start-up ecosystem in Latin America and is ranked #26 in the world, ahead of Shenzhen at #28. São Paulo is the only Latin American city to appear in the world top 40 ranking, which lists ecosystems with start-up exit values of over US$50 million.

Many people may not know that Brazil is the largest fintech market in Latin America and has several highly successful digital banks, including Nubank, which is listed on the New York Stock Exchange. Brazilians have rapidly embraced fintech, and there are 250 million digital accounts – in a nation of 212 million people!

An exciting fintech initiative related to Hong Kong is a collaboration between the Hong Kong Monetary Authority and Banco Central do Brasil linking their central bank digital currency infrastructures.

Apart from fintech, what other sectors should people watch out for?

Brazil’s renewable energy industry is quite advanced and already accounts for 83% of electricity supply. Hydropower is the main source, while large scale investments are also being made in solar and wind generation.

Last year, the Itaipu Technology Park set up a centre for advanced research in hydrogen, including its use as a sustainable aviation fuel (SAF), and has invested in a SAF pilot plant. This presents opportunities for collaboration in green fuel for Hong Kong’s aviation and shipping industries. Innovations in renewable energy technology and equipment are also certain to find a receptive market in Brazil.

What’s on the HKTDC agenda in 2025?

Brazilian buyers are returning to Hong Kong in droves and approaching pre-pandemic records. Apart from the Electronics Fair and Lighting Fair, which are the most popular ones for buyers, this year, we aim to bring more participants to InnoEX in April, Food Expo in August and the Wine & Spirits Fair in November. Our twin jewellery fairs also regularly feature Brazilian exhibitors.

The annual Belt and Road Summit is an important arena for Brazilian project owners seeking investment. We expect to see more Brazilian speakers and innovators at the Summit, particularly in the priority areas of renewable energy and water infrastructure.


Brazilian water management company T&D Sustentavel profiled their technology at the 2024 Belt and Road Summit


How should businesses enter the Brazil market?

HKTDC provides a great range of support programmes and resources to help Hong Kong companies enter the market.

On Thursday 6 February 3:00-4:00pm, HKTDC Research will present a webinar on Unlocking Brazil’s Business Potential as part of the Transformation Sandbox free support programme for SMEs. Interested businesses can register to attend through this link.


We also have freely available Research Reports and a Guide to Doing Business with Brazil providing in-depth information on everything from customs clearance to tax, insurance and visas.

Networks and connections are essential to doing business in Brazil and HKTDC São Paulo office can help with individual advice and introductions to contacts.

Finally, using consultants and agents to deal with tax issues, and establishing partnerships with distributors and retailers will help get your business started on the right foot.


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