Investment Opportunities in Brazil

Investment Opportunities in Brazil

Some Highlights of Chinese Investments in Brazil

• 3rd largest market for PCs;

• 4th largest market for mobile phones, automobiles and TVs;

• 5th largest market for medical equipment.

A Huge Consumer Market

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 SuísseProduced by: Ministry of Finance

• 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

BRASIL – Investment Opportunities

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.

PRIVATE Investment in

Transport Infrastructure

US$ 96.81billion

Roads:US$ 23.64 bi

Railroads:US$ 45 bi

Ports:US$ 24.55 bi

Airports:US$ 3.96 bi

New investment program – Concessions

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

• 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

INFRASTRUCTURE

Inward FDI Stock (2011)

Main Regions of Origin

Foreign Direct Investment

Source: United Nations Conference on Trade and Development (UNCTAD)Prepared by: Ministry of Finance, Brazil

Foreign Direct Investment (US$ billion)

India

2013Brazil

63

China

Belgium

Hong Kong

BrazilAustralia

Russia

United Kingdom

Canada

France

German

Italy

India

Spain

Singapore

USA

China

Brazil

Hong Kong

United Kingdom

France

Singapore

Australia

Canada

Russia

Ireland

Chile

Belgium

Luxemburg

USA

Brasil Global Netwww.brasilglobalnet.gov.br

Trade Promotion and Investment OfficeEmbassy of Brazil in Beijing

Tel: +86 (10) 6532-2881Tel: +86 (10) 6532-2881secom.pequim@itamaraty.gov.brsecom.pequim@itamaraty.gov.br

Thank you! 谢谢 !