Also potential growth opportunity for more GTA FDI in mobile, cleantech
and digital games sectors
TORONTO, April 26 /CNW/ - A new report from PwC and the Greater Toronto
Marketing Alliance (GTMA) today indicates that Brazilian companies,
particularly in the IT sector, could be a significant target market for
attracting foreign direct investment (FDI) into the Greater Toronto
Area (GTA). According to the report, Hot Sectors / Hot Markets, Brazil's Information, Communications and Technology (ICT) sector which
generated over US$139 billion in revenue in 2008, could be an area of
potential opportunity as it enters foreign markets like Canada where
its share of total FDI is growing rapidly.
Over the past 10 years, Brazil, Russia, India, China (BRIC countries)
have increased their share of total FDI into Canada from less than 1%
to nearly 5% and Brazil accounts for about half of all BRIC FDI into
"Brazilian IT companies are well-regarded for their technical expertise
as well as sector-specific knowledge of business processes in a number
of industry sectors, and many are expanding internationally to grow
and remain competitive," says Stephen Martin, partner in PwC's
Consulting practice in Toronto. "While Brazil's economy is improving,
IT has been a particular focus for their Government, particularly in
the financial services and e-government industries - two areas of
potential opportunity within the GTA."
According to the report, there are several reasons why the GTA is well
positioned to compete for IT investment from Brazil:
The concentration of the financial services sector and Ontario
government in the GTA;
The GTA's existing skilled and multicultural IT workforce;
Current focus of the provincial government on e-services; and
Competitive advantages in tax rates and withholding taxes
The GTMA's Hot Sectors / Hot Markets identifies potential areas for attracting Foreign Direct Investment
(FDI) into the GTA. PwC was engaged by the GTMA to conduct research and
analysis into market developments and trends in these emerging sectors.
Alongside Brazil's IT sector, the following emerging areas were
identified for further review and analysis: digital games, mobile
technology and clean technology.
According to the report, the GTA provides several advantages for
attracting FDI investment in each of these sectors and subsectors:
A large market locally but also a gateway to the larger North American
market. Canada has a corporate tax advantage over the US but can also
be a beachhead to the US market.
Many established and thriving technology supporting and related
industries. The GTA's strong financial services industry also
facilitates the pursuit of financing and venture capital.
A skilled, multi-ethnic, multi-lingual workforce, driven in part by an
abundance of academic institutions offering advanced programs directly
related to tech sector opportunities.
Significant government support in the form of tax incentives and direct
funding for this highly profitable and high-growth market.
"Brazil is seen as an important investment and trade perspective for GTA
communities and at the same time, the GTA offers a compelling value
proposition for each of these sectors," says George Hanus, President &
CEO, GTMA. "As the lead marketing agency for the GTA, the GTMA is eager
to utilize the findings of this global study in our current and future
strategic plans of attracting FDI into the GTA."
GTA Hot Sector / Hot Markets Economic Forecast
The findings of the GTMA's Hot Sector / Hot Markets report for April 2011 will be presented at the International Leaders
Breakfast Club on Tuesday April 26th, 2011 at the Ontario Investment & Trade Centre, 250 Yonge St., 35th
floor, Toronto. For more information, please contact Michelle Cortez, email@example.com or visit http://www.greatertoronto.org/.
For more information and to download the summary report, please visit: http://www.pwc.com/ca/hotsectors or http://www.greatertoronto.org/publications.html.
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About the Greater Toronto Marketing Alliance (GTMA)
The GTMA is a public-private partnership among the 29 municipalities and
regions in the GTA, together with the provincial and federal
governments, other non-profit organizations and a broad cross section
of private sector corporations. The GTMA is the key point of contact
for exploring business opportunities in the GTA. With the resources of
its public and private sector partners, the GTMA provides essential
business information and site selection services to facilitate
investment in the Greater Toronto Area.
"PwC" refers to PricewaterhouseCoopers LLP, an Ontario limited liability
partnership, which is a member firm of PricewaterhouseCoopers
International Limited, each member firm of which is a separate legal
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