The water sector in Brazil faces challenges with only 82.5% of the population having access to water supply and less than half of sewage being treated. BNDES plans to invest £66 billion over 20 years to improve access and treatment. While most water utilities are public, private companies serve 20% of the population with only 6% of investments and generate over £1 billion in annual revenue efficiently serving 32 million people. Recent regulatory changes aim to increase private sector participation and flexibility for foreign investment to help meet the £15 billion goal to universalize water services and treatment by 2033, opening opportunities for UK companies in water monitoring, distribution, energy saving, treatment technologies and leakage identification.

1. Water Sector in Brazil
- Overview
Current only 82.5% of the population have access to water supply. 48.6% has access to
sewage collection systems, but only 39% of the sewage is treated. BNDES, the Brazilian
national bank for development, is working to improve these indicators, planning to invest about
330 billion reais (around of £66 Billions) in 20 years. Besides that, there is an ongoing
discussion on regulatory changes to unlock further private investment estimate in £5.5 billion
annually, opening the Brazilian market for international companies.
- Private Water Utilities
Only 6% of Brazilian municipalities have private investment for sanitation and sewage
treatment, however, they are responsible for almost 20% of all that is invested in the country.
This reality highlight the tendency of state-owned companies to develop activities via PPPs
(Public and Private Partnerships). Besides that, the federal government aims to develop the
privatizations process in different municipalities.
In numbers, the four largest private companies in the industry combinedhave annual revenues
of £ 1 billion and efficiently serve over 32 million people across Brazil.
- Public Water Utilities
Public companies (state and municipal) have a large percentage of investments in sanitation
in Brazil, but face governance issues and operate with regulatory insecurity and high deficits
in their accounts.
In this sense, in December 2019, the federal government approved the “Water Regulatory
Framework”, which proposes, in general terms, increases the participation of the private
companies in the sector and promotes a certain flexibility for the entry of foreign capital in
public utilities. Besides that, public investments in the sector by, the year 2033 will achieve £
15 billion, directed to the universalization of water services and sewage treatment.
- Opportunities for UK companies include:
 water quality monitoring equipment
 water distribution network instrumentation
 energy saving water and wastewater pumping and aeration technologies
 membranes and sludge treatment techniques
 leakage identification