Lufthansa is once again flying non-stop to Rio de Janeiro. The German airline sees plenty of growth potential in the Brazilian metropolis, which is attracting numerous German and other European companies - and will be the site of the 2014 FIFA World Cup soccer tournament and 2016 Summer Olympics.

"Based on investments, we're seeing a growing interest among European and German companies to position their production in this market," said Lufthansa board member Kay Kratky, adding that the increased interest will mean more business for the airlines as well.

Rio is a key door-opener to Brazil, the world's seventh-largest economy. The country is rich in natural resources and agricultural products. And it has oil and natural gas, too, buried under so-called pre-salt formations.

Growing German investment

The oil and gas discovery is a "big thing in Rio," said Christiane Furtado of the city's business development program. "All the companies that are coming and investing are making the economy flow."

Manufacturers, particularly from Germany, are either establishing new or expanding existing production facilities in Rio to take advantage of low wages and a huge market. Around 1,200 German companies have investments in the city and have created more than 250,000 jobs. Many of them are in the automotive and chemical sectors but a growing number are medium-sized enterprises as well, according to Everton Vargas, Brazil's ambassador in Berlin.

"Now is an ideal time for medium-sized companies to invest," he said. "They're coming to Brazil not only as pure investors but also as partners of Brazilian companies that can benefit from their experience."

German companies, including Lufthansa, also see plenty of opportunities arising from the World Cup soccer tournament and Olympic Games being held in Brazil, with Rio playing a key role. The city's world-famous Maracana Stadium, which once accommodated 214,000 spectators when it was completed a half-century ago, is being refurbished to more comfortably seat 79,000 people - with the help of German companies.

Global sporting events

Plenty of money is also being invested in facilities for the Olympic Games, including public transportation infrastructure, according to Everardo Candido da Silva, president of the supervisory commission of the state of Rio de Janeiro.

"Brazil and the state of Rio de Janeiro are investing a lot, not just for these two big events, the World Cup and Olympic Games, but also for the population," he said. "The bus system is improving and by 2016 the subway system will double in size."

Brazil's airports are a big issue, however. Some question whether they will be able to handle the flood of international guests attending the games and doing business in the country.

"The airports are already bursting at the seams," said Wilfried Grolig, the German ambassador in Brazil. "It is difficult to imagine how the passenger traffic during the games will be mastered if nothing significant happens with the airport infrastructure."

This is yet another area where German companies can help and prosper, added Grolig, who sees such collaboration as a win-win situation.

Author: Brigitte Scholte, John Blau
Editor: Martin Kuebler