Brazilian State of Bahia would benefit from EcoHouse Group and Minha Casa Minha Vida

As the Minha Casa Minha programme enters its fourth year it has become apparent that the programme will get extend at least until 2016, President Dilma has more or less confirmed this during recent speeches. This news means that more areas will reap the benefits of the programme. As each area awaits news one of the largest Minha Casa Minha Vida developers in Brazil, EcoHouse Group is tight lipped regarding the locations of any future projects. Here's a little more info on the state of Bahia

Bahia is not one of the very largest states in Brazil but it’s certainly pretty big. The exact size is something over half a million square Kilometres which makes it about twice the area of the United Kingdom or about the same as France. The population of fourteen million however is much less than either (and is only about double the size of London). Of these, about 2.5 million live in the Salvador area of the State capital. Other important cities in the State are Feira de Santana (600,000 people), Vitoria da Conquista (300,000) and Camaçari ( 250,000)

The state is on the Atlantic coast of Brazil. As mentioned above, its capital is the city of Salvador, also on the coast, where the Atlantic meets the Bay of All Saints (in Portuguese; ‘Bahia de Todos os Santos’) which of course is where the name of the whole state originates. By the way, the site of the city was first glimpsed by exploring sailors from Europe in the year 1501. The state is geographically divided into two main regions by the north-south mountain range known as Chapada Diamantina. Nowadays the eastern coastal areas of the state are much more developed than the interior.

There are several reasons for this. For a start, the natural vegetation of much of the Atlantic seaboard is coastal forest, one of the largest remaining such parts of Brazil. The land is comparatively very fertile. Consequently in cleared areas the main crops of sugar and tobacco have always done well in the plentiful rainfall although these products are rather less important than they once were. These days soybean growing is a really large part of cultivation.. Similarly, Bahia is now (and has been for some time) the country’s largest producer and exporter of cacao, often known as cocoa and of course the basic ingredient of chocolate. But agriculture these days only accounts for about ten per cent of Bahia State’s GDP. Roughly speaking the industrial component comprises around 50% and the service sector 40%.

Industries are diverse and tend to focus on petrochemical and metallurgical products. An increasing part of this is the automotive industry. Other developing concerns in the economic mix are textiles, clothing and footwear as well as cosmetics and food processing. In the new 21st century Bahia is generally regarded as doing better economically than many other parts of Brazil. As a result of this, many administrators believe that inward immigration from other parts of Brazil will soon increase drastically.

Brazil Invest in New Transport Monitoring System

In a country as rapidly-developing as Brazil it's no surprise that the infrastructure is just as quickly expanding. Communications of all kinds get more and more important and more and more busy too, including the physical means of getting from one place to another, especially the land-based means. Many would argue, as the Brazilians do that all this requires some sort of overall co-ordination and monitoring if it is to be kept in at least minimal balance.

This is where ANTT, the country's National Transportation Agency comes in. The organisation has devised and developed a new kind of 'supersystem' for scrutinising and directing Brazil's railways and road systems. The task is not easy or small! Regarding the train network there are nearly 28,000 Km of rail (not including urban metro systems) of at least four different gauges, ninety-five percent not yet electrified. At this point it's important to note a new 10,000 Km set of rail networks, announced by the Brazilian Government in August.
With roads, if anything the picture is even more complex. Nearly two million kilometers criss-cross the country. About ten percent of it paved and/or tarmac, everything from multi-lane superhighways all the way down to modest, one lane suburban drives. The other ninety per cent is often little more than weather-ridden dirt-tracks. The whole network is huge and is in fact the fourth-largest in the whole world. The purpose of the new surveillance system is ambitious; it is nothing less than to enable the Government to oversee the whole pattern of road and rail transport in Brazil. This will include tracking interstate freight and shipments of all kinds, buses and passenger trains, monitoring traffic flow at 'normal' or 'exceptional times. The Government believes that the present (in many cases ad hoc) methods already in use do not meet the needs of a rapidly-expanding modern economy like Brazil. After all, the BRICS nation is the world's fifth largest in terms of both population and land area and soon hopes to move up to fifth in terms of GDP Economy too.
In preparation for the full scale implementation of the new transport monitoring scheme, several pilot schemes are already in operation. Perhaps the most notable to date is one on a stretch of railway line between the Port of Santos and Sao Paolo, Brazil's ( and indeed the southern hemisphere's) largest urban area. This focus has been deliberately chosen for its congestion and also for its potential for problems. After all, the oversee systems are mainly centered at the HQ of ANTT in Brazil and is directly connected to the monitoring mechanisms of MRS and ALL lines.

A vital component is the video camera network, doing a crucial job in assessing whether time constraints and interchanges of rolling stock are going as planned. As regards roads, clearly only the major or middle-ranging highways are eligible for this kind of co-ordinated overseeing. The system is called SNV (Sistema nacional de Viacao) – 'National Highway System' and is both extensive and fiendishly complicate, to say the least.

Needless to say, a more efficient land-transport managing system is in the interests of the whole economy, not least including long term investment and short term investment in this booming country and the main reason why individuals and companies are continuing to invest in Brazil and why Investment News publications and websites are around the world continue to list Brazil as the worlds number one investment destination.
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Public Education in Brazil : Over 41 Million now enrolled

According to the Brazilian ‘Diario Oficial da Uniao’ ( official gazette) the preliminary results of the Public Education Census for 2012 are now available. The total shows that very nearly 41.2 million young (or younger) people are now enrolled in publicly-run Preschools, Elementary schools, High schools, Special education and Adult education. Together these include both state and municipal provision and total about 21% of the entire Brazilian population.

As far as the actual school-age population is concerned, the data shows a significant and rising majority of the age group is catered for. This is well on the way to the Government’s target of full education quotas.

Brazil : Large increase in older workers

The most recent 'ten-yearly' census in Brazil shows a big increase in people aged over sixty still working in paid employment. During the decade from 2000 to 2010, people in this senior age group who were economically active increased by nearly two-thirds. This was from 3.3 million up to 5.4 million.

This national total of course includes regional ones which all reflect increases in their areas too. Some districts had remarkable expansions, including Santa Catarina with 105%, Amapa 135% and the Federal District with a massive 151%! Such increases are astonishing and for some time pundits of all kinds have been seeking to explain them.

On a regional basis, the Midwest of the country and the expanding North are seemingly both areas where the ‘senior workforce’ is particularly prominent. In each of them almost thirty percent of the labour force is in this age group, a statistic which, as we’ve seen, has surprised many commentators. This is partly due it seems to the expanding employment opportunities in the two regions plus of course a shortage of the necessarily skilled labour in younger age groups. Many companies and organisations feel obliged to resort to older workers with specialist skills and feel glad to get them.

Add to that the increased life expectancy of Brazilians (which now reaches the mid-seventies) and increasing numbers of older citizens needing or wishing to earn and explanations for the phenomenon begin to emerge.This economic information provides data for investment news too. Overseas capital institutions seeking to inject money into Brazilian companies are increasingly interested in the demographics of the necessary skilled workforce in the country.

Dilma Approves Congestion Pricing

As has been expected for some time, Brazil’s President Dilma Rousseff has now approved the new Law of Urban Mobility. It authorises local governments to introduce congestion charging to reduce vehicle traffic.



The twin purposes of the legislation are to reduce toxic emissions from private transport on the one hand and to raise revenue to boost public transport alternatives on the other. Of particular interest too is the increased use of bicycles.


For many years such an approach has been debated in Congress before finally being approved. However, local municipalities have until 2015 to comply and launch their own tailored schemes. This means that the majority of plans will only be in place after the World Cup in 2014.

The new Law will apply to all ‘1600 plus’ towns and small cities in Brazil with populations over 20,000. Any one of them which does not have its local scheme in place by the deadline can incur financial penalties from central Government.

Some see the new Law as being not just excessive but to some extent contradictory as it seems to work directly contrary to other Government initiatives. For example, the National Confederation of Municipalities points out that Brasilia is simultaneously boosting the sale of cars to help the vehicle industry counter the global recession while punishing vehicle usage in urban areas. The organisation’s President, Paul Ziulkoski explained:” While the government encourages cars, this new law authorises the levying of taxes to limit their movement in the cities”.

He went on to explain that there is the strong possibility of conflict between cities as people struggle to have their vehicles registered in areas with comparatively cheaper taxation.

The new Law has obvious implications for investment opportunities in Brazil. There will be clear knock-on effects regarding real estate construction and development costs as well as day-to-day transport expenses for companies and individuals alike.

Aid for Minas Gerais

Since October last year there has been a serious environmental situation in the South East of Brazil. Unusually heavy rains (and consequent serious flooding) has meant severe dislocation in many districts, causing disruption in infrastructure and services, homelessness for thousands and even several instances of death.


In particular, the State of Minas Gerais has been badly affected in these ways. Obviously the general situation extends well beyond its borders but many of the worst results are contained within them.

On Tuesday of this week, national President Dilma Rousseff called on the State Governor, Antonio Anastasia to provide additional relief funding for the worse-affected areas. These include over 50 local towns and cities who are in an emergency situation, plus a similar number in a lesser (but still significant) condition.  As well as these regional initiatives, The President also promised federal support through national government agencies.

The climatic problem is serious. However, the actual death toll, while tragic, has been comparatively low. The numbers directly attributable are still in single figures.

In a lesser sense, over two million residents of the State have been affected in all sorts of ways by the rains with nearly ten thousand people made directly homeless.

Needless to say, the genearal economy of Minas Gerais has been badly affected and the ‘knock-on’ effect for general social progress has been serious. It is hoped in government circles (both national and state) that international investment will also help with the recovery of the State, in tandem with the public sector efforts. In particular, it is felt that homelessness must be tackled urgently, either the short-term problem caused by the floods or the longer-term structural housing problem which Dilma and her administration ahave always been so avid to tackle.

article source : EcoHouse News

PRESIDENT ROUSSOFF : "WE WILL CONTINUE TRANSFORMING"

Speaking last Monday at her latest 'cafe com a presidenta' event, President Dilma Roussoff of Brazil re-emphasised that in her view, 2011 was a good year for her country. She prefaced her remarks by the mission-statement and motto "We will continue transforming the present and building a beautiful future for our children and grandchildren"

As well as speaking generally about the progress and prospects of inflation and GDP she emphasised certain specifics. Her comments were not of course entirely objective, as the timescale does include the first year of the President's own first term of office.

However, she listed some solid achievements of herself and her administration. These included a) the creation of more than two million new jobs nationwide, b) a definite reduction of social inequality and (as of this month) an increase in the national minimum wage to a new level of Reies 622.

In addition it must be remembered that the now-entrenched ‘thirteenth month’ payment convention is now far more widespread.

As from March this year there will be a further easing of taxes for more than five million small business people (self employed), thereby boosting the entrepreneur base of this sector of the economy.
However, for those of us concerned with the progress of the Affordable Housing business/movement, Caixa Economica Federal and Banco do Brasil confirm that progress is on course. A total in excess of Reies 125 Billion will have been committed by the target date of 2014 to the 'Minha Casa Minha Vida' scheme, as promised.
Article Source : EcoHouse News

Yes, growth in Brazil in 2012 but Disagreement about Extent.

On Thursday this week Brazilian news reports that economic analysts at the nation’s biggest private bank, Itau Unibanco, agreed in principle with the economic views of President Rousseff. However, where they seemed to disagree with her was about the scale and extent of the nation’s economic expansion which she so confidently forecast for 2012 earlier this month.


‘Dilma’ (the President is widely referred to by her first name) optimistically announced to a gathering of journalists that she expected GDP to expand by between four and a half and five percent in the coming year. However, Ilan Goldfajn, the Bank’s chief economist was more pessimistic, predicting a figure more likely to be around the three point five level. He did however accept that circumstances may change to improve that figure.

Meanwhile, Brazil’s Central Bank has been cautiously easing the SELIC (Sistema Especial de Liquidação e Custodia) basic interest rate, starting in the summer with more cuts planned for the near future, as the level inches towards the 10% benchmark from its current rate of eleven and a half.

Despite the fact that some see the ten per cent as a barrier below which SELIC will not be allowed to fall, Ilan Goldfajn feels that is not necessarily as rigid a barrier as they believe.

All this has implications of course for international investment in Brazil, especially in the construction programmes creating the affordable housing schemes so important to the emerging middle classes. Most people in the industry are hoping that Dilma is the one with her finger nearest to the pulse of Brazil’s prosperity in 2012!
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Growing Links Between the UK and Brazil

There has always been a close relationship between Great Britain and possibly the leading powerhouse country of South America. To re-emphasise further the growing links between Britain and Brazil, Deputy Prime Minister Nick Clegg led a delegation to the BRIC nation earlier this year.

The purpose was to develop ties further in advance of 2012, a particularly important year for the two countries.


A main feature will be the Rio +20 conference, a UN sponsored meeting on sustainable development which the UK coalition government claims as an important priority. In addition there will be further visits during the year from Prime Minister David Cameron, and leading cabinet ministers from his government including both the Chancellor (finance minister) and the UK’s Foreign Secretary.

People in Brazil and Britain are also both very interested in the Olympics. These are due in London next summer, and the experiences and lessons to be learned and shared are of great concern. Remember that the Brazilians themselves will be hosting the Summer Olympics themselves in Rio in 2014 and they realise the importance of maximising potential as far as they can.

Of course, these all provide investment opportunities. This will have an important impact on the Brazilian economy in general and the construction sector in particular. Naturally, this won’t just include major projects such as the stadium and other infrastructure in Rio and elsewhere which will provide international property investment possibilities.

Additionally though, accommodation/housing is coming into focus. This is with a view to extending homeownership facilities to more modestly-waged citizens and workers, through the Minha Casa Minha Vida scheme in particular.

The Investment

Since its launch in 2009, MCMV (Minha Casa Minha Vida) has attracted numerous investment companies from around the world offering a range of different investment models, conditions and returns, Many UK and European investment companies started offering MCMV investment. unlike other UK based companies who are offering investment opportunities in MCMV EcoHouse are actual developers with their very own 300 strong team of construction workers, engineers, sales staff, legal and administrative staff based in Brazil, the UK, Singapore and Canada so are able to offer one of the best investment models on the market.

Many UK and European developers applied for a license to build under the Minha Casa Minha Vida Scheme over in Brazil but only a handfull qualified due to strick background checks by the Brazilian Government and the funding bank CAIXA. The task of building so many homes in a short period of time left the qualifing developers needing additional funding so they sort out investors.

The MCMV investment is unique and unlike any other property investments, investors can simply invest in one home and when its built and sold onto the waiting family the money plus profit is returned to the investor, this all happens within 12 months meaning the investment is not restricted to high end investors and a family or individual with minimal savings doing nothing in the savings accounts can make a nice profit.

The end sale price (or exit price) is set by the government so the ROI ( Return on Investment ) is also a set amount so there is no worrying about how well your investment is doing.

visit http://www.ecohousedevelopments.com/ for more info