The Brazilian Armed Forces consist of the Navy, Army and Air Force. The Brazilian Navy employs some 70,000 personnel, while the Army and the Air Force (FAB) some 222,000 and 68,000 respectively.
The main mandates of the Brazilian Armed Forces are borders’ protection and response to crisis situations. The Joint Staff of the Armed Forces (EMCFA), is responsible for the strategic planning and coordination of the three military branches.
During the 1990s and early 2000s, the Brazilian Defence Budget remained low. This was mainly attributed to the intent of the civil governments which emerged after the end of the military dictatorship (from the mid-1960s to the mid-1980s), to gain control over defence bodies and to disconnect the future of the country from its troubled past. The alteration in Brazil’s defence spending doctrine that took place after 2003, can be largely explained by the fact that countries from the region, such as Venezuela, Chile and (to a lesser extent) Colombia, were investing in expanding their military capabilities. Additionally, internal security problems were a concern, especially in the Amazon Basin area, where Brazil shares more than 12,000 kms of borders (of an over 16,000 km total land border) with 7 other countries (out of the 10 countries it borders by land in total), over which the government had a weak hold over the rule of law.
Between 2005 and 2016, Brazil experienced a quite linear and significant increase in military spending, in terms of absolute figures. It is indicative that in 2005, total defence spending for the country was some BR $33 billion (approximately US $10.4 billion), while in 2016 it reached BR $85.7 billion (approximately US $27 billion) – the 13th highest Defence budget worldwide for that year, following Italy (11) and Australia (12), (see infographic below). These amounts, indicate a phenomenal increase of the Brazilian Defence Budget, by some 148%, in just a decade (2005-2015). Further, forecasts for 2017, indicate a further rise of the Defence Budget by almost BR $7 billion, to BR $93 billion overall.
According to an official release by the Ministry of Defence, the executed 2015 Defence Budget (BR $81.9 billion), was distributed as per the chart below:
More specifically, in 2015, Personnel costs accounted for some BR $61.6 billion (approximately US $19.5 billion), Operating costs for some BR 10.7 billion (approximately US $3.4 billion) and Investments for some BR 7.2 billion (approximately US $2.3 billion).
In another division, the 2015 budget was distributed to the different Defence Forces, as illustrated in the following chart:
Today, Brazil can be characterised as an prominent regional and a constantly growing global player in the Defence domain. A significant amount of funds are allocated in the armament modernisation efforts of the country, which in turn makes Brazil a rather appealing county for defence firms to establish operations in.
Nevertheless, it must be taken into consideration that as almost every other country in South America, Brazil demands of foreign suppliers of defence material, a good dose of patience, as deals usually take a significant amount of political consultation and negotiation. Additionally, foreign companies that aim to do business in Brazil, must be prepared to transfer technology, which should be carried out in coordination with the respective governments, and in cooperation with Brazilian entities. Despite the aforementioned difficulties, the market exists and rewards await those whose efforts are serious and persistent.
In the last decade (2005-2015), Brazil has imported some US $2.547 billion of defence equipment. The majority of this amount was attributed to the procurement of aircraft (US $ 993 million), armoured vehicles (US $470 million) and ships (US $ 403 million).
The top 8 providers of defence material to Brazil over the period were Germany, followed by the USA, France, Israel, Russia, Italy, the UK and Spain.
Some recent major strategic defence projects of the country include:
KC-390 (National Freighter)
The KC-390 freighter, was the result of intensive investment on education and research by Embraer. With an ability to carry 23 tons of cargo, the aircraft is be able to accommodate large weaponry equipment, semi-assembled aircraft and even Guarani armoured vehicles, apart from conducting logistic support and refuelling missions.
The largest aircraft ever produced in Brazil, comprises a milestone of FAB’s project management excellence. Over 50 Brazilian companies participate in the project. For a total value of BR 7.2 billion (some US $2.28 billion), an initial order of 28 units was placed in 2014 by the Brazilian Air Force (FAB), with the aircraft projected to be delivered over a 12-year period (starting from 2018, after a delay of 2 years in the related programme). Five more countries, namely Argentina, Chile, Colombia, the Czech Republic and Portugal are committed in buying a further 32 aircraft in total.
F-X2 Gripen NG
Following the agreement with Saab for the acquisition of 36 Gripen NG (28 single-seat units and 8 two-seat units), and given Brazil aims to build upon this programme so as to become competitive in the international market, a respective technology transfer program was established. As part of this collaboration, the Gripen Design and Development network (GDDN) opened up in Brazil. Offering theoretical and practical training to Brazilian engineers, the new facility will also host the Gripen Flight centre, as well as the final assembly line for the aircraft and specifically the 8 two-seat units, to be developed in Brazil. Prime Brazilian contractors for the programme, are the Embraer and AEL Sistemas. Overall, the FX project involves 59 offset agreements of US $9.1 billion value, while 2,000 direct and 20,000 indirect jobs are expected to be created as a result.
H-XBR
Taking advantage of economies of scale and making the country less dependent on foreign expertise through the transfer of related technologies and capabilities, the H-XBR project consists in the supply of 50 EC-725 rotary-wing aircraft, to be shared between the Brazilian Army, Navy and Air Force.
The EC-725 helicopter local production line, constitutes a landmark for Brazil as far as the production (all production stages take place in the country) of rotary-wing aircraft, of such size. The EC-725 is used for tactical transport missions of troops and cargo, for refuelling, search and rescue, combat, reconnaissance and marine surface protection missions.
GUARANI family or armoured vehicles
The GUARANI armoured vehicles come in 4x4, 6x6 and 8x8 versions. About 90% of the vehicles’ components are designed, developed and made in Brazil. By 2015, more than 180 vehicles had been produced of the 3,000 vehicles expected to be delivered in total to the Brazilian Army, by the end of the project.
SISFRON (Integrated Border Monitoring)
A major project of the Brazilian Army, the Integrated Border Monitoring System, is one of the greatest surveillance projects in the world (integrating the use of means such as satellites, radars and UAVs), with a total value of some BR 12 billion (US $ 3.8 billion). Up to 2015, almost 8,000 direct and indirect jobs had been created, for only a 600km stretch of border, out of the some 17,000km of total land borders of the country. The project is expected to be concluded by 2035.
SGDC
In order to have a safer and more independent way to manage its information traffic as of 2016, Brazil launched the SGDC project. This concerns the development of a geostationary satellite for defence and strategic communications, enabling also 100% internet coverage of the entire Brazilian territory. Through this project of a total cost of BR 1.7 billion and investments in defence of BR 489 million, the transfer of critical technologies related to the space sector, as well as associated training were to be provided. The satellite was finally launched into orbit, in early May 2017. Visiona (a joint venture of Embraer and Telebras) was responsible for the integration of the satellite system. The total program cost was approximately US $5.6 billion. Thales Alenia provided the satellite and Ariane Space carried out the respective launch.
PROSUB (Submarine development Program)
As part of this program, in collaboration with DCNS, the Brazilian company Odebrecht is to locally develop, initially 4 conventional submarines and the associated shore-based infrastructure through a technology transfer agreement, whereas in the final phase of the program a single nuclear powered submarine. As part of the latter, DCNS, is to provide design assistance for the non-nuclear portion of Brazil’s first nuclear-powered submarine. The submarines’ construction takes place in a dedicated facility, the purpose-built Metal Structures Manufacturing Unit (UFEM). In early 2017, the first conventional submarine (SBR-1), was under construction.
SisGAAz (Blue Amazon Management System)
Of a total value of US $12.6 billion, a program run by the Brazilian Navy, it was created in order to provide surveillance and monitoring of the Brazilian waters, as well as increase search & rescue efficiency. Full implementation of the program was expected to occur by 2024, however the decision on the Prime Contractor has been postponed, and hence delays in program implementation are expected.
PNM (Navy Nuclear Program)
The program is split in 2 phases: the first phase concerns the development of a nuclear fuel production cycle, as well as of a nuclear electric generation laboratory (LABGENE), with 11 buildings, currently (2016) under construction in Aramar, Sao Paulo. The program’s second phase includes the construction of a prototype reactor, in addition to an upgrade of the Navy’s Technological Centre in Sao Paulo. Within this project, generators and turbines were made in Brazil, in partnership with the French DCNS.
CYBER DEFENCE
A program initiated by the Army as of 2010, is primary concerned with the development of a National Cyber Defence policy and associated infrastructure. One of the first steps of the project was the creation of the Cyber Defence Centre (CDCiber) for coordinating and integrating cyber defence activities under the Ministry of Defence. Thereafter, the first national anti-virus software, called Defesa BR and the Cyber Operations System (SIMOC), have been created. Further steps included the acquisition of super computers and digital forensic material, the creation of a National Cyber Defence School and the Cyber Defence Command. The project’s total value is around US$ 114 million and is expected to be concluded in 2017.
A-Dapter Project (Next generation Missile)
In partnership with South Africa, Brazil has designed and developed this short-range missile (with a range up to 12 km), able to execute high-performance manoeuvres, as already successfully demonstrated when fired in-flight by a South African Gripen, in 2015. By mid-2016, the project was expected to have been completed.