Tech Roundup: Brazil advances privatization of data controllers

You’re reading The Brazilian Report’s weekly tech roundup, a digest of the most important news on technology and innovation in Brazil. This week’s topics: Bolsonaro expected to cave on Huawei ban; the privatization of state-owned data-controlling companies moves forward; and energy producers turn to fintechs.

Privatization of state-owned IT companies moves forward

After the government’s privatization agenda stalled in 2020, the Economy Ministry is keen not to waste any time this year, initiating studies to privatize a number of IT firms, including the Federal Data Processing Service (Serpro), Dataprev — which manages social security databases — and telecoms company Telebras.

Why it matters. Serpro and Dataprev are the two largest state-owned IT companies in Brazil. Combined, they store the personal data of every single Brazilian alive. And data has become one of the world’s most valuable resources.

Slow processes. Economy Ministry teams are tasked with drafting a three-phased plan for selling the three companies, which must include international benchmarks on how to modernize the ICT sector. Meanwhile, the National Development Bank (BNDES) hired private consultants to help shape the plan. 

• Organizations focused on data privacy are increasingly concerned about how the privatization will take place, as Dataprev and Serpro hold extremely sensitive data.
• True to form, the government has not set no timetable for any deals to take place. In the case of Telebras, privatization will almost certainly not happen this year.

Trump exit and vaccine shortages force Bolsonaro U-turn on Huawei

As we broke in our January 22 Daily Briefing, the Brazilian government is correcting its course on Huawei, and the Chinese telecom behemoth is no longer expected to be excluded from the auction of...