Brazil banks on Internet of Things to boost its economy

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The Brazilian government has pledged to back an economy built upon connected devices, rolling out a comprehensive initiative to bolster ‘Internet of Things’ (IoT) technology at this year’s FutureCom Brazil Expo.

The nation’s ministry of Science, Technology and Communications will be launching a holistic campaign lending full support to public policies aimed at developing IoT, referring to “smart” devices embedded with Internet-connected sensors which would allow everything from smartphones and cars, to kitchen appliances and public transport systems, to share and analyze information.

Brazilian Minister Gilberto Kassab of Science, Technology and Communications added that "it's what will guide technology development over the next year,” said at the event.

The government says it will amend the country's laws and regulations to facilitate the development of the IoT. And the country's national development bank will also help support and connect key actors in the IoT area.

"We are dedicating 40 professionals to mobilize different sectors and we are particularly focusing on the agricultural sector, the health sector, and on support for the introduction of IoT in cities and in the industry," said Carlos da Costa, Director of Credit, Planning and Technology at Brazil Development Bank.

Business management consultant McKinsey has projected that the Internet of Things could generate up to 11.1 trillion US dollars a year in worldwide economic value by 2025.

And the Brazilian government predicts that IoT related activities will add about 132 billion US dollars to the country's economy by 2025, according to its official study and plan of action presented at the conference.

Brazil's President Michel Temer speaks during the opening ceremony of Futurecom in Sao Paulo, Brazil October 2, 2017. /VCG Photo

"Technology is something that must serve society. Nowadays technology is essential to participate in public debate and even in politics," Brazilian President Michel Temer said at the FutureCom Conference.

Even before the Brazilian government decided to create an official framework for the development of the IoT, big companies and startups alike have already pounced on the technology which has the potential to generate billions of dollars.

CogniTV, a startup working on a technology that increases the level of interaction of a TV set, is one of them.

"I think Brazil is on the right path to develop the IoT but we still need more investment. I believe we are already a bit late and support should have come before. But it's good that the government is stepping in now as it's essential to develop this sector," said founder Mauricio Silvestre.

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