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
Gross Fixed Capital Formation (%GDP)
Source: Instituto Brasileiro de Geografia e Estatística (IBGE)
Prepared by: Ministry of Finance, Brazil
Despite government efforts in increasing public investments
there is a huge space for private investment:
BRAZIL – Investment Opportunities
PRIORITY SECTORS:
• INFRASTRUCTURE
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•
•
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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 $250 billion.
• A defining characteristic of the PIL is its openness to international
business.
New investment program – Concessions
PRIVATE
Investment in
Transport
Infrastructure
US$ 96.81
billion
Roads:
US$ 23.64 bi
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
Europe (58%)
North America (24%)
Asia (8%)
Central America and Caribbean (6%)
South America(2%)
Africa, Middle East and Oceania(2%)
Foreign Direct Investment
Foreign Direct Investment (US$ billion)
USA
USA
China
China
Belgium
Hong Kong
Hong Kong
Brazil
Brazil
United Kingdom
Australia
France
Singapore
Singapore
Russia
Australia
United Kingdom
Canada
Canada
Russia
France
India
Ireland
German
Italy
India
Spain
Chile
Luxemburg
Belgium
Source: United Nations Conference on Trade and Development (UNCTAD)
Prepared by: Ministry of Finance, Brazil
2013
Brazil
63
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
Thank you! 谢谢!