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Investment Opportunities in Brazil. Some Highlights of Chinese Investments in Brazil. A Huge Consumer Market. 3rd largest market for PCs; 4th largest market for mobile phones, automobiles and TVs; 5th largest market for medical equipment. Increased Investment is a Government Priority.
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Investment Opportunities in Brazil
A Huge Consumer Market • 3rd largest market for PCs; • 4th largest market for mobile phones, automobiles and TVs; • 5th largest market for medical equipment.
Increased Investment is a Government Priority Source: Instituto Brasileiro de Geografia e Estatística (IBGE) Prepared by: Ministry of Finance, Brazil Gross Fixed Capital Formation (%GDP)
Despite government efforts in increasing public investments there is a huge space for private investment:
BRAZIL – Investment Opportunities PRIORITY SECTORS: • INFRASTRUCTURE • RESEARCH & DEVELOPMENT • OIL & GAS • RENEWABLE ENERGIES • AGRIBUSINESS
In the coming decade, investments in infrastructure will lead the Brazilian economy
Increasing demand for infrastructure services Source: National Logistics & Planning Company (EPL) Energy Research Company (EPE) Ministry of Mining and Energy (MME) Credit Suísse Produced by: Ministry of Finance
BRASIL – Investment Opportunities • The Brazilian economy is at the onset of a new investment cycle • Largest concession program in recent decades: US$ 250 billion • Infrastructure investments: great multiplier effect • Most effective instrument to stimulate the economy in a period of international crisis
Priority Sectors: Infrastructure LOGISTICS INVESTMENTS PROGRAM (PIL) Launched in August 15th, 2012 • Aimed at providing Brazil with a modern, integrated and efficient transportation network, strengthening the competitiveness of the Brazilian economy by reducing logistics costs by at least 30% by the time the program reaches completion. The plan will raise investment of over $250 billion. • A defining characteristic of the PIL is its openness to international business.
Roads: US$ 23.64 bi PRIVATE Investment in Transport Infrastructure US$ 96.81 billion New investment program– Concessions Railroads: US$ 45 bi Ports: US$ 24.55 bi Airports: US$ 3.96 bi
INFRASTRUCTURE • Widening and extending 7,500 kilometers of highways, with various stretches of road to be auctioned to the private sector following a concessions contract model. • Total estimated investments: US$ 21.8 bi • US$ 12.9 bi Invested in 5 years • Concession contracts will be awarded for 30 years • BR-163/267/262 connects the agricultural Brazilian Central Western region and the main ports in the Southeast coast Total extension: 1,423km; total investments: US$3.7 bi
INFRASTRUCTURE • Construction of 10,000 kilometers of railway. Stretches of track are to be auctioned to the private sector following a concessions contract model. • Total estimated investments: US$ 38.3 bi • US$ 23.5 bi Invested in 5 years • Concession contracts will be awarded for 35 years • Uruaçu-Corinto-Campus connects the mining West region to the main ports in the Southeast coast. Extension: 1,730 km; total estimated investment: 7.6 bi
INFRASTRUCTURE • Upgrade of existing and creation of new ports (both maritime and inland waterways), which have been opened up to private investment under a new regulatory framework. • New Expected Private investments in concessions, leases and in Private Use Terminals • Total estimated investments: US$ 22.8 bi • US$ 13.0 bi invested until 2014/15
INFRASTRUCTURE • Development of 689 regional airports and aerodromes, including 5 international airports that are auctioned under concession contracts to the private sector. Regional airports: • Estimated investment on the 1st phase: US$ 3.06 bi in 270 regional airports • Partnership with states and municipalities for the management of the airports • Administrative concession
Inward FDI Stock (2011) Main Regions of Origin
Foreign Direct Investment Foreign Direct Investment (US$ billion) Source: United Nations Conference on Trade and Development (UNCTAD) Prepared by: Ministry of Finance, Brazil USA USA China China Belgium Hong Kong Brazil Hong Kong 2013 Brazil 63 Brazil United Kingdom Australia France Singapore Singapore Russia Australia United Kingdom Canada Russia Canada France Ireland India German Italy Chile India Luxemburg Spain Belgium
Brasil Global Net www.brasilglobalnet.gov.br Trade Promotion and Investment Office Embassy of Brazil in Beijing Tel: +86 (10) 6532-2881 secom.pequim@itamaraty.gov.br