Against this background, Neudo Campos, governor of the northern state of Roraima, recently made a tour of businesses located in the heartland of Brazilian leather and footwear production, the State of Rio Grande do Sul. His mission - to encourage the leather trade to relocate to Roraima, where the nearby Venezuelan generating plant of Guri means electricity is more freely available.

Aside from a more reliable source of power, Campos was also able to offer VAT exemption, a good infrastructure with paved roads and a location that provides easy access to the neighbouring market of Venezuela, as well as the Caribbean and Central and North America. 

Such is the seriousness of the energy situation that electricity rationing is now being introduced in those states that have exceeded government-imposed consumption targets, with states in the north of the country being expecially badly hit.  Even Roraima is not immune to the crisis, as rationing is due to begin there on August 15.  Experts are now saying that even if the targets were to be met (a prospect that looks as unlikely as ever) the crisis would last to at least 2003.

Campos said: "Entrepreneurs must always recognise good business opportunities when they see them and Roraima now offers a great opportunity for growth."