AN ENTERPRISING INVESTMENT

PROMOTION AGENCY
THINKING AND ACTING
LOCALLY AND GLOBALLY...
ALLIANCE OF EFFORTS
9MINASINVEST is an alliance of individuals and
corporations committed to the sustainable growth of
Minas Gerais State, capitalizing on the extraordinary
innovative capacities of its public- and private-corporate
and academic organizations, forming a powerful alliance .

9MINAS INVEST leverages the individual initiatives into a

larger, targeted program that aggressively promotes the
state’s business development.

9 MINASINVEST creates an effective economic development

marketing instrument and accelerates the attraction of
quality investment oriented to the sustained development.

9 By identifying and attracting international companies

in strategic industry sectors, MINASINVEST increases the
number of quality opportunities available and drives
the overall success of Minas Gerais’ business
development strategies.
 MINAS GERAIS STATE :
THE IDEAL PLACE FOR YOUR INVESTMENTS IN BRAZIL
BRAZIL: A STEADILY RISING ECONOMY
9 BRAZIL is definitely one of the most important emerging economies
in the world, with a population of 175 million people.
9 Brazilian GDP amounts to nearly 50 pct of the GDP of whole Latin
America.
9 Modern industrial park.
9 Exceptional conditions for investments: 80% of the top 500
corporations operate in Brazil.
9 Inflation under control.
9 Rapid and steady economic transformation
9 Fully open to international investments with legal protections.
9 Competitive business culture.
9 Natural resources
9 Stable democracy
9 Tax reform attracting new investments.
9 Steady growth over the last couple of years with continuous growth
forecasted
9 Leading world food producer and exporter
THE MINAS GERAIS STATE
THE IDEAL PLACE FOR YOUR INVESTMENTS IN BRAZIL

9 Strategically located in the Southeast region of Brazil, where

concentrates 78% of Brazilian consuming market is concentrated.
9 18 million people.
9 Territory greater than many European countries.
9 Third largest South American economy.
9 Excellent infra-structure
9 Abundant energy and modern communication.
9 Half of its budget is invested in education and health.
9 Modern law recently approved law on Public-private partnerships,
respecting obligations with investors and partners.
9 Expedient and practical action from Public Administration
9 Strong competitiveness for new enterprises
9 Highly qualified labor

9MINAS GERAIS State stands at a vibrant moment in its development,

introducing entrepeneurial changes, innovation, paradigm shifts, and
openness for consideration of new alternatives and investments.
ENTREPRENEURIAL STATE CULTURE While the State of Minas Gerais assumes the role of promoter and clearinghouse
for investments, it is aligned with the basic concepts of this new entrepreneurial
culture, which involve:

9overcoming bureaucratic bottlenecks that inhibit the adoption of performance-

based models of administration.
9breaking with inefficient management practices.
9decentralizing and opening spaces for the involvement of the private sector in the
process of development.
9 managing fiscal crises, economic externalities, and imperfect contracts in the
credit markets;
9 overcoming the lack of clear regulatory function and market credibility;
9Long-term planning: research and development programs that present an
investment portfolio for attracting private sector interest;
9Coordination among diverse state development institutions: cutting waste,
redundancies, and loss of efficiency.

“ Minas Gerais presents Brazil with a new management model. We

have left behind that motto that Public services are inefficient by
nature. We are bringing private sector management methods , with
performance evaluation and the establishment of goals to be
achieved. “ ( Governador Aecio Neves)
ECONOMIC POTENTIALS

WITHIN A RANGE OF 800 KM OF ITS

CAPITAL BELO HORIZONTE, MINAS
GERAIS CONCENTRATES:

BH

ƒ 48% of the Brazilian population

SP RJ

ƒ 58% of National GDP

ƒ 62% of retail sales in Brasil

Source : Industrial Development Institute - INDI

ECONOMIC OVERVIEW OF MINAS
9TRANSPORT: Largest road network in Brazil: 265.000 km and extensive railroad
network: 5.080km, ensuring logistics and easy flow of products to main domestic
markets and export through the most efficient ports in Brazil: Santos, Rio de
Janeiro/Sepetiba and Vitoria.
9COMMUNICATION: 5 million fixed lines and 3 million mobile lines. Fiber optic
links connect the State to the main cities. Minas is reckoned as the benchmark for the
quality of its communications.
9EDUCATION: the high quality of Minas education has been internationally
recognized by UNICEF: 15.945 basic education schools, largest university network.
9ENERGY: one third production of the electric power of the country.
9INTERNATIONAL TRADE in 2005: About 21 billion (20pct of Brazilian turn-over)
9INVESTMENTS: it is forecasted about USD 20.6 billion in the next couple of years
9LEGISLATION: modern and operative regarding investments, keeping up with
international standards. Minas people and institutions are traditional in their respect
and commitment to agreements and contracts

9INTERNATIONAL AIRPORT: The Tancredo Neves Airport is one of the most modern
airports and, for its exceptional conditions, has been chosen to be the first one to set
up the industrial park concept, creating a free trade zone for import, export and
distribution. Companies will receive from State exceptionally favorable fiscal
conditions and other incentives.
OPPORTUNITIES IN INDUSTRIES
9AUTO AND AUTOPARTS: The state accounts for 27% of the national production.
9BIOTECHNOLOGY: The State hosts around 100 national and
international companies..
9FASHION: footwear (ranked as the 3rd producer in Brazil) and cosmetics
9TEXTILE AND CLOTHING: The State comprises more than one hundred
plants with outstanding reputation in this sector.
9CEMENT: Leading producer as a result of investments in high technology
with abundant reserves of lime available.
9ORNAMENTAL STONES: 160 different tradable varieties; reserves are
among the largest in the world.
9ELECTRO-ELECTRONIC: Great potential: excellent labor and
technological conditions and financing programs.
9LOGGING INDUSTRY AND FURNITURE PLANTS: Minas is a national
benchmark; 50% of eucalyptus reforestation areas in Brazil are in Minas
representing nearly 1 million hectares.
9MINING: production has gone up steadily in view of dramatic world
demand and high prices. Minas plays host to huge reserves of gold, iron,
diamond, phosphate, zinc, aluminum and limestone.
9STEEL: 40% of overall production in Brazil (around 30 million tons),
concentration of the largest national and multinational corporations
OPPORTUNITIES IN AGROBUSINESS
Favorable climate, rich soil and enormous water reserves: US$ 17 billion GDP

9COFFEE: 900 thousand hectares planted area, exporting annually about

US$ 1 billion (about 58% of national exports).
9MILK: Leading producer with annual production of 6.42 billion liters.
9BEEF: 20.3 million head, the State boasts the second largest herd in
the country.
9CORN: 1.26 million hectares planted area.
9SUGAR CANE: Ranked as the fourth leading producer in Brazil, Minas
has a great potential in this sector, particularly in the ethylic alcohol
(ethanol), which is rising dramatically in demand in the world.
9SOY BEANS: With 900 thousand hectares planted area, Minas is the
sixth largest producer and exporter in Brazil.
9LEATHER: concentrates approximately 22% of the tanning and leather
processing plants in Brazil.
9CHARCOAL: 2 million hectares of planted areas makes the State the
nation´s largest producer.
9WOODPULP AND PAPER PRODUCTION: great potential in view of
extensive reforestation areas and environment concern.
9JAIBA: largest irrigation project in South America. With extensive
infrastructure investments, JAIBA, situated in the North of the State, represents
tremendous opportunities in tropical fruit plantation and agro-industry.
TOURISM: GREAT VOCATION
9HISTORY: 18th century cities offer historical, cultural, religious and
gastronomic attraction.Among them, Ouro Preto, Diamantina and
Congonhas have been listed by UNESCO as Heritage of Humanity.

9ECOLOGY: splendid mountains, hills, caves, rivers, brooks lie out in

over 200 thousand hectares, besides 656 thousand hectares of
preserved sites, including archaeological sites and cave paintings.

ROYAL ROUTE PROJECT: an audacious project of the State restoring

and investing in 162 cities/counties along the historic road of the
colonial times.

Great opportunities for companies in more than 50 different sectors,

including industry, services and agri-business.
The project will attract investments in infrastructure, creating a
route of international interest (as Santiago de Compustela in Spain)
along 1.460 km of outstanding beauty and history.
CLUSTERS: GREAT OPPORTUNITIES
“ Minas Gerais hosts 40
STRATEGY
productive sectors that find
themselves in varying
INNOVATION PRODUCTIVITY stages of maturation and
consolidation.

In order for them to grow

ECONOMIC
PERFORMANCE
CLUSTER COMPOSITION and be competitive, the
effective participation of
the private sector is
BUSINESS needed.”
SPECIALIZATION
CLIMATE
(Minas do Século XXI –
COLLABORATION BDMG)

Clusters offer great opportunities for new investments owing to

their natural resources and locally accumulated skills.
COMPREHENSIVE FACILITIES In its efforts, MINASINVEST counts with a number of efficient State organizations, working
together to accelerate and stabilize the implementation of your investments, such as:

9SEDE – The State Secretariat of economic development: is in charge of the overall activities
related to the economic development of the State.
9BDMG – The Development Bank of Minas Gerais: manages state funds and finances
enterprises.
9 CDI- The Company of Industrial Districts of Minas: is in charge of industrial areas making
available full infra-structure.
9FIEMG: The Federation of industries of the State of Minas Gerais -congregates 130 industry
association, representing 80.000 industries in Minas Gerais. It has an international
division to assist international affairs.
9INDI – Integrated Development Institute: It carries out research, elaborate investment
opportunities in the State and assists interested investors.
9JOÃO PINHEIRO FOUNDATION: renders technical services related to economic and social
development.
9CETEC – Technological Center Foundation of Minas: researches projects and technological
services.
9EUROCENTRO/AL-INVEST: is a cooperation program between European and Latin American
companies and institutions.
9BRAZIL TRADE NET/SIPRI: created by the Ministry of Foreign affairs to foster Brazilian
exports.
9PARTNERSHIP SEARCH DATABASE: managed by the European Commission, it is an important
tool to assist small and medium size enterprises search for partners for transnational
cooperation.
INTEGRATING MINAS EFFORTS
9To achieve the efficacy the State Government has undertaken a
profound revision of its structure, including the empowerment of the
development apparatus with a greater flexibility in order to meet the new
demands of society .

9 The objective of Minas Gerais development is now to increase the

competitiveness of its economic base, targeting the state’s supply chains,
transforming comparative advantages into real and enduring competitive
advantages.

The new model requires the primacy of private initiative in determining

the economy’s dynamic as well as an elevated degree of openness to the
international economy.

9State development agencies in partnership with the private sector, can

expand their activities in ways that serve the demand for investment
with more efficiency and rapidity and democratizes the access to the
State’s products and services.