GTA could be a potential hotspot for Brazilian investors: PwC / GTMA report

Also potential growth opportunity for more GTA FDI in mobile, cleantech and digital games sectors

TORONTO, April 26 /CNW/ - A new report from PwC and the Greater Toronto Marketing Alliance (GTMA) today indicates that Brazilian companies, particularly in the IT sector, could be a significant target market for attracting foreign direct investment (FDI) into the Greater Toronto Area (GTA). According to the report, Hot Sectors / Hot Markets, Brazil's Information, Communications and Technology (ICT) sector which generated over US$139 billion in revenue in 2008, could be an area of potential opportunity as it enters foreign markets like Canada where its share of total FDI is growing rapidly.

Over the past 10 years, Brazil, Russia, India, China (BRIC countries) have increased their share of total FDI into Canada from less than 1% to nearly 5% and Brazil accounts for about half of all BRIC FDI into Canada.

"Brazilian IT companies are well-regarded for their technical expertise as well as sector-specific knowledge of business processes in a number of industry sectors,  and many are expanding internationally to grow and remain competitive," says Stephen Martin, partner in PwC's Consulting practice in Toronto. "While Brazil's economy is improving, IT has been a particular focus for their Government, particularly in the financial services and e-government industries - two areas of potential opportunity within the GTA."

According to the report, there are several reasons why the GTA is well positioned to compete for IT investment from Brazil:

  • The concentration of the financial services sector and Ontario government in the GTA;
  • The GTA's existing skilled and multicultural IT workforce;
  • Current focus of the provincial government on e-services; and
  • Competitive advantages in tax rates and withholding taxes

The GTMA's Hot Sectors / Hot Markets identifies potential areas for attracting Foreign Direct Investment (FDI) into the GTA. PwC was engaged by the GTMA to conduct research and analysis into market developments and trends in these emerging sectors. Alongside Brazil's IT sector, the following emerging areas were identified for further review and analysis: digital games, mobile technology and clean technology.

According to the report, the GTA provides several advantages for attracting FDI investment in each of these sectors and subsectors:

  • A large market locally but also a gateway to the larger North American market. Canada has a corporate tax advantage over the US but can also be a beachhead to the US market.
  • Many established and thriving technology supporting and related industries. The GTA's strong financial services industry also facilitates the pursuit of financing and venture capital.
  • A skilled, multi-ethnic, multi-lingual workforce, driven in part by an abundance of academic institutions offering advanced programs directly related to tech sector opportunities.
  • Significant government support in the form of tax incentives and direct funding for this highly profitable and high-growth market.

"Brazil is seen as an important investment and trade perspective for GTA communities and at the same time, the GTA offers a compelling value proposition for each of these sectors," says George Hanus, President & CEO, GTMA. "As the lead marketing agency for the GTA, the GTMA is eager to utilize the findings of this global study in our current and future strategic plans of attracting FDI into the GTA."

GTA Hot Sector / Hot Markets Economic Forecast
The findings of the GTMA's Hot Sector / Hot Markets report for April 2011 will be presented at the International Leaders Breakfast Club on Tuesday April 26th, 2011 at the Ontario Investment & Trade Centre, 250 Yonge St., 35th floor, Toronto. For more information, please contact Michelle Cortez, or visit

For more information and to download the summary report, please visit: or

About PwC
PwC firms provide industry-focused assurance, tax and advisory services to enhance value for their clients. More than 161,000 people in 154 countries in firms across the PwC network share their thinking, experience and solutions to develop fresh perspectives and practical advice. See for more information. In Canada, PricewaterhouseCoopers LLP ( and its related entities have more than 5,300 partners and staff in offices across the country.

"PwC" is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.

PwC Name Change
PwC has changed its name from PricewaterhouseCoopers to PwC in the fall of 2010. 'PwC' is written in text with a capital 'P' and capital 'C'. Only when you use the PwC logo is the name represented in lower case.

About the Greater Toronto Marketing Alliance (GTMA)
The GTMA is a public-private partnership among the 29 municipalities and regions in the GTA, together with the provincial and federal governments, other non-profit organizations and a broad cross section of private sector corporations. The GTMA is the key point of contact for exploring business opportunities in the GTA. With the resources of its public and private sector partners, the GTMA provides essential business information and site selection services to facilitate investment in the Greater Toronto Area.

"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.


For further information:

Kiran Chauhan, PwC
Tel: 416 947 8983


Tony Romano, GTMA
Tel: 416 360 5758

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