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Brazil's electronics sector eyes Africa

Nicola Mawson
By Nicola Mawson, Contributing journalist
Brazil, 12 Aug 2010

Brazil's electronic sector is keen to expand exports into Africa in a bid to drive revenue to what is the country's equivalent of the US's Silicon Valley.

Brazil's electronic valley is located in the city of Santa Rita do Sapucai, in the south-eastern state of Minas Gerais. The city is home to 40 000 people and has more than 150 companies that develop technologies in surveillance, broadcasting and telecommunications.

Daniela Albino Saccardo, executive secretary of the Electro-Electronic Cluster of the sector association, Sindvel, explains that the area receives support through government grants, tertiary institutions and other industry bodies.

Electronics companies in the valley have created 9 500 direct and indirect jobs and last year sold products worth more than $1.15 billion. Currently, about 11 000 products are developed and produced in the region.

The region has two incubators that allow companies to receive support for three years before setting up shop in the valley, says Saccardo. Companies that have gone through the incubation process have an 80% success rate. Government support in the form of tax incentives and free land is also offered.

Companies in the region export to more than 40 countries globally, including Europe, Africa and South America. Products sold to African countries include educational items, broadcasting technology and items.

Target market

Renato Favilla, corporate project manager of Linear, which produces broadcasting equipment such as transmitters from the valley, says the company is targeting growth from countries in Africa as demand for newer television technology grows.

television standard ISDB-T. However, the company also wants to expand into Africa and may form joint ventures or set up a local office in order to do so, says Favilla. “We want to have wherever it is needed.”

He says the company already provides a range of products based on the European DVB-T standard to some African countries.

Superior Technologies in Broadcasting (STB) has recently embarked on an export programme, says commercial director Armando Lemes. The company is keen to export its ISDB-T broadcasting products to Africa and SA, should the region decide to implement the Brazilian standard.

“Africa as a continent could turn into the continent of the future,” says Lemes. However, a decision has yet to be made by South Africa as to which standard to follow, after government decided in April to review its decision to implement the European DVB-T standard.

South African manufacturers and broadcasters had been testing digital transmission on the DVB standard until government's about-turn.

* Nicola Mawson is being hosted in Brazil courtesy of the Brazilian Embassy in SA.

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