Rousseff deepens Brazil power costs cuts as inflation accelerates

Raymond Collitt – Bloomberg, 01/23/2013

Brazil will lower energy costs this year more than the government previously announced and made the cuts effective today as part of an effort to slow inflation that has remained above the central bank’s target since August 2010.

“Beyond anticipating the enforcement of the new rates, the cut is bigger than previously announced,” President Dilma Rousseff said in a nationally-televised address yesterday.

The president said the cuts that go into effect today rather than early next month will pare consumers’ power costs 18 percent and those for industry by 32 percent compared to the reductions of 16.2 percent and 28 percent she had announced in September.

Read more…


Brazil’s economic ties with Africa continue to flourish

The Citizen, 06/13/2011

Former President Lula da Silva is often attributed with developing the increased economic relationship between Brazil and Africa – forming what is now known as the ‘south-south’ cooperation after visiting 27 of the 53 countries in 2003.  It was this extensive trip that initiated the creation and expansion of a number of Brazilian consulates as well as other ties that were viewed as important.

According to the Financial Times, Brazilian commerce levels have reached US$25 billion in 2010 and there are now 500 Brazilian companies in operation in the continent (compared to 13 in 1995), many of whom see the region as not only an important export/investment destination but also as ways to use knowledge and expertise in fields such as hydro electricity, energy production and construction.

From a commercial perspective, the country is finding itself in increased competition with other nations with a strong desire to invest and boost trade links – particularly from China (that has double the level of commerce across the continent compared to Brazil); India; North America and Europe (although the latter two have slowed down their pace as a result of the global economic crisis).

Read more…