ABCC member Karoon Gas Australia Ltd has successfully bid for five offshore exploration blocks in the Santos basin in the state of Santa Catarina, Brazil, just south of Rio de Janeiro.
Karoon believes the blocks offer good exploration potential in the hundreds of millions of barrels of oil and trillions of cubic feet of gas range.
The blocks are located in an existing oil and gas producing province in close proximity to several large oil and gas producing fields including the Caravela and Coral fields 100km to the south west and the Merluza field 100km to the north-west.
The giant new discovery by Petrobras of the deep water Tupi field, to the east of the blocks awarded to Karoon, has altered industry perception of the Santos basin. The Tupi field, discovered recently by Brazilian national oil company Petrobras, ensured strong competition in the latest round of bidding for exploration acreage in Brazil.
Karoon will complete the acquisition of these blocks in March 2008 at an award ceremony in Brazil, at which time Karoon is obligated to pay a total of $US25 million in non-refundable signature bonuses and refundable bid bonds to ANP, the governing body of the Brazilian petroleum industry.
The work program Karoon has submitted for the award of these blocks consists of extensive geological analysis work, the purchase, reprocessing and interpretation of existing seismic. On three of the blocks there is a requirement to acquire a further 170 square kilometres of 3D seismic in the first 3 year term. In the optional second term of 2 years, one well is required to be drilled in each block.
All expenditure will be funded either through the use of Karoon funds or possibly the equity restructuring or farm out of the permits over the coming year.
Source: Karoon press release.
Friday, 30 November 2007
SalDoce Fine Foods and the Brazilian pão de queijo success
This month the ABCC president, Cristina Talacko, gave an interview to Sydney Morning Herald – Good Living - about the challenges of bringing to Australia a Brazilian tradition.
Pão de queijo (cheese bread) has been around for centuries but became popular in the past 40 or so years and is often eaten with coffee. Small coffee shops specialising in pao de queijo are everywhere throughout Brazil and SalDoce was the first company to manufacture and market this Brazilian specialty in Australia.
To read the article click here.
Pão de queijo (cheese bread) has been around for centuries but became popular in the past 40 or so years and is often eaten with coffee. Small coffee shops specialising in pao de queijo are everywhere throughout Brazil and SalDoce was the first company to manufacture and market this Brazilian specialty in Australia.
To read the article click here.
Brazilian Globo Channel a-la-carte in Australia
ABCC member UBI has commenced offering TV Globo as an a-la-carte channel in response to numerous requests from the Brazilian community in Australia. “We would like as many Brazilian viewers as possible to enjoy their favourite Brazilian programs. By subscribing to TV Globo at this great price, viewers can watch 24 hours of the best Brazilian entertainment right here”, UBI said.
TV Globo is the home of the latest and the most popular soap operas starring Brazil’s biggest stars. It also airs the latest news, hit comedies and musical variety shows, plus all the action and excitement of live Brazilian football.
Meanwhile, UBI continues to support the Brazilian community through sponsorship of events such as the recent Brazilian Festival at Darling Harbour in Sydney. “We would like to further build on our relationship with the Brazilian community and get even more involved in the events and activities that celebrate the culture and traditions of Brazil. We are inviting members of the Brazilian community to contact us with details of any upcoming events that are being organised, so that we can promote and possibly also screen them on our channels”, UBI added.
Members of the Brazilian community can subscribe to TV Globo by calling UBI WORLD TV on 1300 400 800 or by visiting www.ubiworldtv.com.
TV Globo is the home of the latest and the most popular soap operas starring Brazil’s biggest stars. It also airs the latest news, hit comedies and musical variety shows, plus all the action and excitement of live Brazilian football.
Meanwhile, UBI continues to support the Brazilian community through sponsorship of events such as the recent Brazilian Festival at Darling Harbour in Sydney. “We would like to further build on our relationship with the Brazilian community and get even more involved in the events and activities that celebrate the culture and traditions of Brazil. We are inviting members of the Brazilian community to contact us with details of any upcoming events that are being organised, so that we can promote and possibly also screen them on our channels”, UBI added.
Members of the Brazilian community can subscribe to TV Globo by calling UBI WORLD TV on 1300 400 800 or by visiting www.ubiworldtv.com.
New Member
The ABCC representatives would like to welcome SDI Limited (Victoria) as a new member and thank you for your support.
Events: ABCC Christmas Drinks in Brisbane
Date: 13th December 2007
Time: from 6pm
Venue: Fridays, Eagle St Brisbane
For more information contact us: info@australiabrazil.com.au
Time: from 6pm
Venue: Fridays, Eagle St Brisbane
For more information contact us: info@australiabrazil.com.au
Economy: Foreign investment in Brazil hits all-time high
Foreign direct investment (FDI) in Brazil totaled US$ 31.2 billion from January to October this year, against US$ 13.6 billion recorded in the same period of last year. The data was disclosed 28th November by the Brazilian Central Bank. According to the Bank, this is the best result ever recorded for the period since 1947, when the historical series was initiated.
In October alone, FDI inflow stood at US$ 3.2 billion and, according to the head at the Economic Department of the Central Bank, Altamir Lopes, so far in November another US$ 2.2 billion have been invested, driving the total for the year up to US$ 33.4 billion, which already surpasses the highest annual value ever recorded: US$ 32.7 billion, recorded in 2000.
According to Lopes, until the end of the year, FDI inflow should reach US$ 35 billion. The official forecast of the Central Bank was US$ 32 billion. Last year, US$ 18.8 billion in foreign direct investment entered the country.
For more information click here and read the article in ANBA website
In October alone, FDI inflow stood at US$ 3.2 billion and, according to the head at the Economic Department of the Central Bank, Altamir Lopes, so far in November another US$ 2.2 billion have been invested, driving the total for the year up to US$ 33.4 billion, which already surpasses the highest annual value ever recorded: US$ 32.7 billion, recorded in 2000.
According to Lopes, until the end of the year, FDI inflow should reach US$ 35 billion. The official forecast of the Central Bank was US$ 32 billion. Last year, US$ 18.8 billion in foreign direct investment entered the country.
For more information click here and read the article in ANBA website
Trade: Brazil increases imports significantly
Brazilian imports totaled US$ 98 billion from January to October, growth of 29.2% in comparison with the same period last year. The value is record for the period and has already exceeded the total for 2006, when foreign purchases reached US$ 91.35 billion. Brazilian exports, in turn, generated US$ 132.36 billion, an increase of 16% in comparison with the first ten months of 2006. The figures were supplied by the Ministry of Development, Industry and Foreign Trade.
In the accumulated result for the year, Brazil's global trade – exports plus imports – grew 21.2% in comparison with the same period last year, US$ 230.36 billion against US$ 189.11 billion.
In October, the Brazilian trade balance registered a surplus of US$ 3.43 billion for Brazil. Exports totaled US$ 15.76 billion, an increase of 18.6% as against the same month last year. Imports totaled US$ 12.33 billion, growth of 34.7% over October 2006. Both exports and imports broke monthly records.
In the month, three categories of products registered record values of exports: manufactured products, with US$ 7.7 billion, basic products, US$ 5.6 billion and semi-manufactured products US$ 2.1 billion. In comparison with October 2006, the growth was 6.8% for manufactured products, 44.3% for basic products and 9% for semi-manufactured products.
The five main buyers of Brazil products in October were the United States, with imports of US$ 2.36 billion, Argentina, US$ 1.47 billion, China, US$ 1 billion, the Netherlands, US$ 900 million and Germany, US$ 651 million.
In the month, imports of all categories of products grew in comparison with October last year, consumer goods rose 41%, fuels and lubricants, 38.6%, raw and intermediary materials, 32.6%, and capital goods, 32.3%.
For more information click here and read the article in ANBA website
In the accumulated result for the year, Brazil's global trade – exports plus imports – grew 21.2% in comparison with the same period last year, US$ 230.36 billion against US$ 189.11 billion.
In October, the Brazilian trade balance registered a surplus of US$ 3.43 billion for Brazil. Exports totaled US$ 15.76 billion, an increase of 18.6% as against the same month last year. Imports totaled US$ 12.33 billion, growth of 34.7% over October 2006. Both exports and imports broke monthly records.
In the month, three categories of products registered record values of exports: manufactured products, with US$ 7.7 billion, basic products, US$ 5.6 billion and semi-manufactured products US$ 2.1 billion. In comparison with October 2006, the growth was 6.8% for manufactured products, 44.3% for basic products and 9% for semi-manufactured products.
The five main buyers of Brazil products in October were the United States, with imports of US$ 2.36 billion, Argentina, US$ 1.47 billion, China, US$ 1 billion, the Netherlands, US$ 900 million and Germany, US$ 651 million.
In the month, imports of all categories of products grew in comparison with October last year, consumer goods rose 41%, fuels and lubricants, 38.6%, raw and intermediary materials, 32.6%, and capital goods, 32.3%.
For more information click here and read the article in ANBA website
Agribusiness: Beef exports grew 16% until October
Brazilian exports of bovine meat totaled US$ 3.7 billion from January to October, representing a 16% increase in comparison with the same period of last year. Shipments totaled 2.17 million tones, an expansion of 10.5% over the first ten months of 2006. The data were disclosed 13th November by the Brazilian Beef Industry and Exporters Association (Abiec).
According to the Abiec, in the last two years, Brazilian slaughterhouses, which already were the world's leading exporters in terms of volume, started directing their more expensive products, namely those of special cuts, to more demanding markets.
The leading market for Brazilian raw meat from January to October was Russia, which imported 531,000 tones, generating revenues of US$ 735 million. Egypt is second at revenues of US$ 306 million and a shipped volume of 239,000 tones. Third in the ranking are the Netherlands, which imported US$ 275 million and 66,000 tones.
The ten leading buyers of the Brazilian product also include Algeria, with imports of US$ 87 million and a shipped volume of 65,000 tones, and Saudi Arabia, at US$ 79.5 million and 53,000 tones shipped.
In October, foreign bovine meat sales totaled US$ 410 million, representing an increase of 4.6% in comparison with the same month of last year. Shipments totaled 221,000 tones, a 4.5% decrease using the same basis for comparison.
For more information click here and read the article in ANBA website
According to the Abiec, in the last two years, Brazilian slaughterhouses, which already were the world's leading exporters in terms of volume, started directing their more expensive products, namely those of special cuts, to more demanding markets.
The leading market for Brazilian raw meat from January to October was Russia, which imported 531,000 tones, generating revenues of US$ 735 million. Egypt is second at revenues of US$ 306 million and a shipped volume of 239,000 tones. Third in the ranking are the Netherlands, which imported US$ 275 million and 66,000 tones.
The ten leading buyers of the Brazilian product also include Algeria, with imports of US$ 87 million and a shipped volume of 65,000 tones, and Saudi Arabia, at US$ 79.5 million and 53,000 tones shipped.
In October, foreign bovine meat sales totaled US$ 410 million, representing an increase of 4.6% in comparison with the same month of last year. Shipments totaled 221,000 tones, a 4.5% decrease using the same basis for comparison.
For more information click here and read the article in ANBA website
Poultry: Brazilian enterprise wants to export organic chicken
Company Korin Agropecuária is the first company from the southeastern Brazilian state of São Paulo to produce organic chicken on grazing ground. Thanks to the increase in offer of inputs like organic maize and soy, the company has managed to produce chicken according to international organic regulations. The certification is granted by the Biodynamics Institute (IBD). In 1995, Korin had already pioneered in the launch of “green chicken”, without the use of antibiotics, hormones and growth promoters.
Part of the production of organic chicken supplies the domestic market, but the main focus is exports. “France, Germany, Japan and the United States are great consumers of organic products,” stated Edson Shiguemoto, commercial manager at Korin. According to him, the company has already exported green chicken to Japan and believes that organic chicken will be even more successful.
“The organic chicken made by Korin supplies a growing number of people concerned with good feeding habits, aligned to environmental and social sustainability, characteristic of the certified organic production system,” stated Shiguemoto. Apart from organic feeding, the birds also graze. “This method increases the animals’ well-being, resulting in a more healthy bird with better taste and more pleasant texture,” he explained.
As the cost of the raw material used, organic maize and soy, is around three times more expensive than conventional feed, each kilogram of organic chicken should cost between 10 and 11 Brazilian Reais (US$ 5.65 and US$ 6.25) for end consumers. Korin believes that initial production should be around 20 tones of meat a day.
For more information click here and read the article in ANBA website
Part of the production of organic chicken supplies the domestic market, but the main focus is exports. “France, Germany, Japan and the United States are great consumers of organic products,” stated Edson Shiguemoto, commercial manager at Korin. According to him, the company has already exported green chicken to Japan and believes that organic chicken will be even more successful.
“The organic chicken made by Korin supplies a growing number of people concerned with good feeding habits, aligned to environmental and social sustainability, characteristic of the certified organic production system,” stated Shiguemoto. Apart from organic feeding, the birds also graze. “This method increases the animals’ well-being, resulting in a more healthy bird with better taste and more pleasant texture,” he explained.
As the cost of the raw material used, organic maize and soy, is around three times more expensive than conventional feed, each kilogram of organic chicken should cost between 10 and 11 Brazilian Reais (US$ 5.65 and US$ 6.25) for end consumers. Korin believes that initial production should be around 20 tones of meat a day.
For more information click here and read the article in ANBA website
Tourism: “BRASIL” Workshop in Melbourne
Around 250 travel agents and tourism industry professionals attended the "BRASIL" Workshop 2007, organized by the Consulate General of Brazil, which was held at the Novotel, Collins St, in Melbourne on 21st of November.
Eighteen companies (three airlines, fourteen tour operators and one açai distributor) joined this initiative contributing with 11 door-prizes including full packages to Brazil!
For one hour participants were able to learn about well known and less visited destinations, giving agents a chance to see what they could offer to a wide range of clients who want a fun and exciting holiday.
Combined with the taste of the famous Brazilian drink Caipirinha (pronounced ki-pee-ree-nya), Capoeira (Brazilian martial arts) and a performance of drums also made part of the night’s entertainment.
“This night was a very exciting one! I definitely learned about Brazil. What a diverse country”, was one of the many comments made by the people attending.
At the end there was one thing that everyone seemed to agree on – Brazil sure is a great place to visit.
The Consulate General of Brazil is very pleased with the outcome and hopes to organize another workshop in 2008.
For more information click here and read the article in E-Travel website
Eighteen companies (three airlines, fourteen tour operators and one açai distributor) joined this initiative contributing with 11 door-prizes including full packages to Brazil!
For one hour participants were able to learn about well known and less visited destinations, giving agents a chance to see what they could offer to a wide range of clients who want a fun and exciting holiday.
Combined with the taste of the famous Brazilian drink Caipirinha (pronounced ki-pee-ree-nya), Capoeira (Brazilian martial arts) and a performance of drums also made part of the night’s entertainment.
“This night was a very exciting one! I definitely learned about Brazil. What a diverse country”, was one of the many comments made by the people attending.
At the end there was one thing that everyone seemed to agree on – Brazil sure is a great place to visit.
The Consulate General of Brazil is very pleased with the outcome and hopes to organize another workshop in 2008.
For more information click here and read the article in E-Travel website
Petroleum: Brazil to have one of the world's ten largest oil reserves
The president at Brazilian state-owned oil company Petrobras, Sergio Gabrielli, estimated that the oil and natural gas bed discovered by the company in the Santos Basin is going include Brazil among the world's ten largest oil producing countries. According to him, the reserves, estimated in between 5 billion and 8 billion barrels, will ensure the country the eighth or ninth position in the ranking.
After the volume announced 8th November at field Campo de Tupi, said Gabrielli, Brazil now has reserves similar to those of Nigeria and Venezuela. With reserves totaling 14.4 billion barrels of oil and natural gas, Brazil currently ranks 24th in the global ranking of producer countries. "This is extremely good news," he claimed.
According to the Exploration and Product director at Petrobras, Guilherme Estrela, Campo de Tupi might go into commercial operation within up to six years. In 2011, though, a test phase for extraction will begin, with a production of 100,000 barrels of oil and gas per day.
Presently, the area of the new reserve at the Santos Basin counts on 15 exploratory wells that demanded investments of US$ 1 billion in the last two years. In order to reach these wells, the state-owned company drilled through 2,000 meters of salt for more than one year. The first well alone cost US$ 240 million.
Nevertheless, to Gabrielli, the reserves might be even larger. He claimed that extraction of oil and gas at between 5,000 and 7,000 meters of depth, at the same layer in which the bed was discovered at Campo de Tupi, might add from 70 billion to 107 billion barrels of the products to the Brazilian reserves. To that extent, the company needs to intensify extraction at those depths in the coastline ranging from the state of Espírito Santo to the state of Santa Catarina.
For more information click here and read the article in ANBA website
After the volume announced 8th November at field Campo de Tupi, said Gabrielli, Brazil now has reserves similar to those of Nigeria and Venezuela. With reserves totaling 14.4 billion barrels of oil and natural gas, Brazil currently ranks 24th in the global ranking of producer countries. "This is extremely good news," he claimed.
According to the Exploration and Product director at Petrobras, Guilherme Estrela, Campo de Tupi might go into commercial operation within up to six years. In 2011, though, a test phase for extraction will begin, with a production of 100,000 barrels of oil and gas per day.
Presently, the area of the new reserve at the Santos Basin counts on 15 exploratory wells that demanded investments of US$ 1 billion in the last two years. In order to reach these wells, the state-owned company drilled through 2,000 meters of salt for more than one year. The first well alone cost US$ 240 million.
Nevertheless, to Gabrielli, the reserves might be even larger. He claimed that extraction of oil and gas at between 5,000 and 7,000 meters of depth, at the same layer in which the bed was discovered at Campo de Tupi, might add from 70 billion to 107 billion barrels of the products to the Brazilian reserves. To that extent, the company needs to intensify extraction at those depths in the coastline ranging from the state of Espírito Santo to the state of Santa Catarina.
For more information click here and read the article in ANBA website
Mining: Brazil's CVRD says no plans to help BHP Billiton acquire Rio Tinto
Brazilian mining giant Compania Vale do Rio Doce (CVRD) has 'no intention of making a move' to help BHP Billiton PLC in its efforts to acquire Rio Tinto, or to act as a white knight for the latter, said CVRD chief executive Roger Agnelli.
Rio Tinto has rejected BHP Billiton's unsolicited US$350 billions merger proposal and earlier today said it has not been engaged in discussions with anyone at this time.
'There is no intention on the part of CVRD to make a move,' Agnelli said. 'It's an Australian party to which we haven't been invited.'
Agnelli said CVRD did not want to get involved in the project, adding that it remains focused on organic growth. He did not, however, rule out buying up assets should a merger of the two go ahead.
Fabio Barbosa, finance director of CVRD, also said that while the group is looking to increase recognition of the group amongst European investors, it is not considering a listing in Paris.
For more information click here and read the article in Hemscott website
Rio Tinto has rejected BHP Billiton's unsolicited US$350 billions merger proposal and earlier today said it has not been engaged in discussions with anyone at this time.
'There is no intention on the part of CVRD to make a move,' Agnelli said. 'It's an Australian party to which we haven't been invited.'
Agnelli said CVRD did not want to get involved in the project, adding that it remains focused on organic growth. He did not, however, rule out buying up assets should a merger of the two go ahead.
Fabio Barbosa, finance director of CVRD, also said that while the group is looking to increase recognition of the group amongst European investors, it is not considering a listing in Paris.
For more information click here and read the article in Hemscott website
Property: Brazil's latest overseas investment opportunity
A new resort is called Jacuma Beach; Rio Grande do Norte Brazil has been launched offering overseas property investors opportunities to enter the hot Brazilian real estate market. The development is located on one of the more popular areas for international investment in the northeast coast of Brazil in Rio Grande do Norte. With over 400 kilometers of beaches, 365 days of sun a year and the purest air in South American, there is now plenty to offer investors and home buyers. Just north of the capital city of Natal is some of the finest and most pristine beachfront property in the country.
Jacumã Beach, north of Natal (not to be confused with Jacuma Beach in the state of Paraiba) is known for its white sand and beautiful lagoon. The beach itself is in a small bay that is protected by reefs, keeping the waves small and the water calm. This is a perfect place for a family to enjoy the water and weather of northeast Brazil.
The new resort is under development along Jacumã Beach offers a range of housing options, from one bedroom apartments to bungalows starting at £56,000. That’s an amazing price to be able to enjoy one of the sunniest beaches of the world year round. With this being such a popular area, it is also a great opportunity to have rental property for vacationers that will provide income on a consistent basis. Annual yields are estimated at 10% with even greater capital growth expected for this whole area.
In 2010 a new international airport is scheduled to open outside of Natal and will be the fourth largest airport in the world. It will handle many flights from Europe as it is expected to be the gateway to this popular area. This makes the area of Natal even more attractive for investors.
For more information click here and read the article in HomesGoFast website.
Jacumã Beach, north of Natal (not to be confused with Jacuma Beach in the state of Paraiba) is known for its white sand and beautiful lagoon. The beach itself is in a small bay that is protected by reefs, keeping the waves small and the water calm. This is a perfect place for a family to enjoy the water and weather of northeast Brazil.
The new resort is under development along Jacumã Beach offers a range of housing options, from one bedroom apartments to bungalows starting at £56,000. That’s an amazing price to be able to enjoy one of the sunniest beaches of the world year round. With this being such a popular area, it is also a great opportunity to have rental property for vacationers that will provide income on a consistent basis. Annual yields are estimated at 10% with even greater capital growth expected for this whole area.
In 2010 a new international airport is scheduled to open outside of Natal and will be the fourth largest airport in the world. It will handle many flights from Europe as it is expected to be the gateway to this popular area. This makes the area of Natal even more attractive for investors.
For more information click here and read the article in HomesGoFast website.
Retail: Wal-Mart investing more in Brazil
The Brazilian unit of Wal-Mart Stores Inc. (WMT), the world's largest retailer, will invest 1.2 billion Brazilian Reais ($649 million) in its local operations in 2008, Wal-Mart Brasil Chief Executive Vicente Trius announced 27th November, according to the local Estado news agency.
The money will principally be used to construct 36 new stores and centers of distribution, for which the sites have yet to be settled on, said Trius at a press conference in Brasilia. Investments will also be made in renovating existing stores, he added.
The new stores will create 7,100 new direct jobs.
Brazil is the fourth most important market in terms of the group's strategic growth behind Mexico, Canada and the U.K., said Trius.
"Brazil has increased in importance for us in the last few years," he said.
He said the company expected Brazil to continue to grow at current levels in 2008 and inflation would remain under control. However, he added that it was vital the government push through key tax reforms to allow the expansion to continue.
For more information click here and read the article in CNN website
The money will principally be used to construct 36 new stores and centers of distribution, for which the sites have yet to be settled on, said Trius at a press conference in Brasilia. Investments will also be made in renovating existing stores, he added.
The new stores will create 7,100 new direct jobs.
Brazil is the fourth most important market in terms of the group's strategic growth behind Mexico, Canada and the U.K., said Trius.
"Brazil has increased in importance for us in the last few years," he said.
He said the company expected Brazil to continue to grow at current levels in 2008 and inflation would remain under control. However, he added that it was vital the government push through key tax reforms to allow the expansion to continue.
For more information click here and read the article in CNN website
Telecommunication: Opportunities in Brazil
Brazil has the highest number of internet users in Latin America, ahead of both Argentina and Mexico. Along with Russia, Brazil leads the BRIC quartet in terms of the percentage of the population (13%) which is online. Like India and China, however, Brazil¹s social and economic inequalities mean that the country is still suffering from a vast digital divide. Only 13% of households own a PC and just 3% of the population has broadband access. Unless Brazil’s massive digital divide is bridged soon, multinationals could increasingly overlook Brazil and focus their R&D investments towards other faster-developing economies, such as China. Brazil's GDP, for example, is expected to grow by just 3-4% over the next three years, compared with the blistering pace of 8-9% in India and China.
To prevent such a fall from happening, Brazil is taking steps to lower the cost of PCs and furnish its 33m schoolchildren with laptops. However, it needs to go further and guarantee connectivity in all of its municipalities.
In Latin American terms, Brazil is already a technology leader. It has the largest IT market in Latin America, spending on average 2% of GDP on the sector. IT spending is expected to increase by 14% by 2010 and reach US$20bn for the first time, according to the EIU. Brazil has become a net exporter of telecoms equipment, with export sales totaling an estimated US$3bn in 2006. It is also the world¹s fifth largest economy for mobile telephony, with just over 100m subscribers.
Despite this, Brazil’s ICT infrastructure is extremely poorly distributed.
Virtually all rural areas have zero, or very little connectivity. More than 22m people, or 44% of the country¹s 5,562 municipalities, have no private telecommunications or internet service. In schools the situation is even worse, where just 6% of public schools have connectivity.
The Brazilian government is aware of the problem and is aiming to improve matters. Its Programa de Aceleração do Crescimento (PAC – growth acceleration program), launched in January 2007, includes tax measures that are specifically aimed at encouraging price reduction and increasing IT sales. The Associação Brasileira da Indústria Eléctrica e Electrônica (Abinee) predicts that these measures will enable PC prices to fall by a further 10-12% in the coming year.
This reduction is needed: computers bought on the formal market in Brazil are expensive because consumer businesses suffer from high tax burdens, costly logistics and an underdeveloped national retail infrastructure.
Strong protectionism for the PC industry also pushes up the cost of Brazilian-made computers, although the PAC has introduced a zero tax rate for producers of semiconductors in a bid to attract investment in the area.
Brazil’s grey market currently accounts for around 47% of total PC sales.
Fortunately there is an increasing demand for branded PCs, thanks to the growing availability of installment credit provided by stores and manufacturers. Combined with the government¹s ongoing crackdown on smuggling, the price difference between computers purchased on the formal market and those purchased on the grey market has narrowed significantly. However, with poverty still widespread in Brazil, PCs remain beyond the reach of most families.
Brazil has more than 33m children in primary schools and 10m in secondary schools, in approximately 160,000 public schools across the country. Less than 6% of its schools have connectivity. Compared with former developing countries like South Korea, where 65% of six-year old children are on the internet and practically all public schools have broadband, connectivity amongst Brazilian youth - who make up a third of the population – remains frighteningly low.
In 2005, Brazil signed up to the global One Laptop Per Child (OLPC) project, which aims to deliver US$100 laptops to schoolchildren in the developing world. The green and white machines have a crank so that they can be wound up by hand. As basic as they sound, in April this year the OLPC announced that due to the rising cost of materials, the laptops will now cost US$175 and may not start production until October.
The project requires orders for 3m machines in order for manufacturing and distribution to begin. While Brazil has promised to furnish each of its 43m school children with a laptop, it does not take a genius to calculate that Brazil cannot afford to fund this project, even with increased IT spending.
The money would be better spent carrying out alternative digital projects in schools that have wider reach and impact.
Brazil is strong in terms of e-government communications but there is room for expansion in all areas of public administration. The government is beginning to make some progress by introducing free-access internet booths in post offices (citizens kiosks) and by establishing telecentres in the poorest communities. It is also offering pay-as-you-go computers, which are a result of local businesses teaming up with multinationals such as Microsoft.
However, the government needs to take bigger steps and implement a national high-speed fiber optic point of presence (PoP) in every municipality. This will ensure that all institutions in both urban and rural areas, including schools, public services, telecentres and health centres, have high-quality access to the internet. Without PoPs, whole sections of the population are disconnected from advances in technology, thus putting the country at a disadvantage when multinationals are looking to invest in the local economy.
Clearly, Brazil needs an ICT strategy that will boost the entire economy, not just parts of it. This will not only secure Brazil¹s future growth, but also its economic competitiveness against other developing economies.
Source: Industry Briefing
To prevent such a fall from happening, Brazil is taking steps to lower the cost of PCs and furnish its 33m schoolchildren with laptops. However, it needs to go further and guarantee connectivity in all of its municipalities.
In Latin American terms, Brazil is already a technology leader. It has the largest IT market in Latin America, spending on average 2% of GDP on the sector. IT spending is expected to increase by 14% by 2010 and reach US$20bn for the first time, according to the EIU. Brazil has become a net exporter of telecoms equipment, with export sales totaling an estimated US$3bn in 2006. It is also the world¹s fifth largest economy for mobile telephony, with just over 100m subscribers.
Despite this, Brazil’s ICT infrastructure is extremely poorly distributed.
Virtually all rural areas have zero, or very little connectivity. More than 22m people, or 44% of the country¹s 5,562 municipalities, have no private telecommunications or internet service. In schools the situation is even worse, where just 6% of public schools have connectivity.
The Brazilian government is aware of the problem and is aiming to improve matters. Its Programa de Aceleração do Crescimento (PAC – growth acceleration program), launched in January 2007, includes tax measures that are specifically aimed at encouraging price reduction and increasing IT sales. The Associação Brasileira da Indústria Eléctrica e Electrônica (Abinee) predicts that these measures will enable PC prices to fall by a further 10-12% in the coming year.
This reduction is needed: computers bought on the formal market in Brazil are expensive because consumer businesses suffer from high tax burdens, costly logistics and an underdeveloped national retail infrastructure.
Strong protectionism for the PC industry also pushes up the cost of Brazilian-made computers, although the PAC has introduced a zero tax rate for producers of semiconductors in a bid to attract investment in the area.
Brazil’s grey market currently accounts for around 47% of total PC sales.
Fortunately there is an increasing demand for branded PCs, thanks to the growing availability of installment credit provided by stores and manufacturers. Combined with the government¹s ongoing crackdown on smuggling, the price difference between computers purchased on the formal market and those purchased on the grey market has narrowed significantly. However, with poverty still widespread in Brazil, PCs remain beyond the reach of most families.
Brazil has more than 33m children in primary schools and 10m in secondary schools, in approximately 160,000 public schools across the country. Less than 6% of its schools have connectivity. Compared with former developing countries like South Korea, where 65% of six-year old children are on the internet and practically all public schools have broadband, connectivity amongst Brazilian youth - who make up a third of the population – remains frighteningly low.
In 2005, Brazil signed up to the global One Laptop Per Child (OLPC) project, which aims to deliver US$100 laptops to schoolchildren in the developing world. The green and white machines have a crank so that they can be wound up by hand. As basic as they sound, in April this year the OLPC announced that due to the rising cost of materials, the laptops will now cost US$175 and may not start production until October.
The project requires orders for 3m machines in order for manufacturing and distribution to begin. While Brazil has promised to furnish each of its 43m school children with a laptop, it does not take a genius to calculate that Brazil cannot afford to fund this project, even with increased IT spending.
The money would be better spent carrying out alternative digital projects in schools that have wider reach and impact.
Brazil is strong in terms of e-government communications but there is room for expansion in all areas of public administration. The government is beginning to make some progress by introducing free-access internet booths in post offices (citizens kiosks) and by establishing telecentres in the poorest communities. It is also offering pay-as-you-go computers, which are a result of local businesses teaming up with multinationals such as Microsoft.
However, the government needs to take bigger steps and implement a national high-speed fiber optic point of presence (PoP) in every municipality. This will ensure that all institutions in both urban and rural areas, including schools, public services, telecentres and health centres, have high-quality access to the internet. Without PoPs, whole sections of the population are disconnected from advances in technology, thus putting the country at a disadvantage when multinationals are looking to invest in the local economy.
Clearly, Brazil needs an ICT strategy that will boost the entire economy, not just parts of it. This will not only secure Brazil¹s future growth, but also its economic competitiveness against other developing economies.
Source: Industry Briefing
Brazil’s mobile phone subscribers reach 115 millions
Brazil recorded 1.93 million new mobile lines in October to end the month with almost 115 millions, an increase of 1.72% compared to end-September, local telecoms regulator Anatel said in a statement.
The mobile user base in Brazil is now 80.4% prepaid. The country added 18.04mn new mobile lines in the last 12 months, according to Anatel.
The mobile penetration rate was 60.4% at end-October, compared to 59.5% at end-September.
Brazil's capital Brasília continued to have the highest penetration rate in the country with 113% at the end of October, followed by Rio de Janeiro state with 76.2% and the southern state of Rio Grande do Sul with 73.3%.
Meanwhile, Brazil's largest mobile operator Vivo saw its market share shrink by 0.17 percentage points in October to 27.61% from 27.78% at the end of September.
TIM's market share edged up 0.16 points to 25.88% in October from 25.87% the previous month, and the country's third largest mobile operator Claro increased its share by 0.07 points to 24.89% from 24.82% in September.
According to Anatel, GSM technology now accounts for 75.5% of mobile lines, followed by CDMA technology with 19.3% and TDMA lines with 5.2%.
For more information click here and read the article in Cellular News website
The mobile user base in Brazil is now 80.4% prepaid. The country added 18.04mn new mobile lines in the last 12 months, according to Anatel.
The mobile penetration rate was 60.4% at end-October, compared to 59.5% at end-September.
Brazil's capital Brasília continued to have the highest penetration rate in the country with 113% at the end of October, followed by Rio de Janeiro state with 76.2% and the southern state of Rio Grande do Sul with 73.3%.
Meanwhile, Brazil's largest mobile operator Vivo saw its market share shrink by 0.17 percentage points in October to 27.61% from 27.78% at the end of September.
TIM's market share edged up 0.16 points to 25.88% in October from 25.87% the previous month, and the country's third largest mobile operator Claro increased its share by 0.07 points to 24.89% from 24.82% in September.
According to Anatel, GSM technology now accounts for 75.5% of mobile lines, followed by CDMA technology with 19.3% and TDMA lines with 5.2%.
For more information click here and read the article in Cellular News website
Brazil to invest US$28 billions in science and technology
Brazil is to plow 28 billion dollars into science and technology over the next three years in an effort to boost its competivity, President Luiz Inacio Lula da Silva said 19th November.
Details of the massive investment will be given Tuesday, Lula told a Brazil-German economic conference in Brasilia.
"We are going to announce an investment of 28 billion dollars in science and technology," Lula told the meeting.
“The sacrifice we made in 2003, 2004 allows me to tell you today that, from 2010, you will see a much better Brazil, a Brazil of many more opportunities," he said.
The plan adds to a surge in education spending Lula's government has already effected, resulting in the building of new universities and technical colleges.
The president said the government was also to present a bill to Congress this month that would encourage technological innovation in industry.
For more information click here and read the article in AFP website
Details of the massive investment will be given Tuesday, Lula told a Brazil-German economic conference in Brasilia.
"We are going to announce an investment of 28 billion dollars in science and technology," Lula told the meeting.
“The sacrifice we made in 2003, 2004 allows me to tell you today that, from 2010, you will see a much better Brazil, a Brazil of many more opportunities," he said.
The plan adds to a surge in education spending Lula's government has already effected, resulting in the building of new universities and technical colleges.
The president said the government was also to present a bill to Congress this month that would encourage technological innovation in industry.
For more information click here and read the article in AFP website
Renewable Energy: 3rd International Solar Cities Congress
The International Solar Cities Congress is part of the International Solar Cities Initiative and the 2008 Congress will be the third solar cities congress.
The objectives of the International Solar Cities Initiative are to support UN energy and climate policies by stimulating the interest of cities into becoming benchmark cities that commit to ambitious emission reduction goals; help cities systematically integrate renewable energy and energy efficient technologies and industries into environmental, economic and city planning; and provide scientific support for the validation and design of effective measures and policies for Solar Cities.
The 3rd Congress will appeal to all professionals and individuals with an interest in sustainable energy and its role in our urban environment. The International Solar Cities Initiative (ISCI) has been formed to address climate change through effective measurable action at the urban community level. The members of ISCI are cities, institutions and individuals who want to help each other in this task.
Business is a major focus of the Congress, and anyone in the business of sustainability, market growth and forecasts will find the information presented throughout the program invaluable, particularly on the Wednesday, which has been designed as a special business day and features Robert F Kennedy Jr.
A three day program is planned in association with a mayoral forum, field trips and the opportunity for all delegates to enjoy pre and post Conference tours to some of South Australia's major attractions.
More information: http://www.solarcitiescongress.com.au/
The objectives of the International Solar Cities Initiative are to support UN energy and climate policies by stimulating the interest of cities into becoming benchmark cities that commit to ambitious emission reduction goals; help cities systematically integrate renewable energy and energy efficient technologies and industries into environmental, economic and city planning; and provide scientific support for the validation and design of effective measures and policies for Solar Cities.
The 3rd Congress will appeal to all professionals and individuals with an interest in sustainable energy and its role in our urban environment. The International Solar Cities Initiative (ISCI) has been formed to address climate change through effective measurable action at the urban community level. The members of ISCI are cities, institutions and individuals who want to help each other in this task.
Business is a major focus of the Congress, and anyone in the business of sustainability, market growth and forecasts will find the information presented throughout the program invaluable, particularly on the Wednesday, which has been designed as a special business day and features Robert F Kennedy Jr.
A three day program is planned in association with a mayoral forum, field trips and the opportunity for all delegates to enjoy pre and post Conference tours to some of South Australia's major attractions.
More information: http://www.solarcitiescongress.com.au/
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