“ Without investment, economic growth is impossible. Well-planned and high-quality foreign investment in developing countries can help make economic practices more sustainable. Inappropriate investment, however, can undermine communities and the environment. Proper goal in attracting investment is quality, rather than quantity. In the end, if investment does not increase well-being on a sustainable basis, it is not worth having, much less actively chasing. (International Institute for Sustainable Development, Canada) SUSTAINABLE DEVELOPMENT MINASINVEST believes there should exist an appropriate balance between public interest and private entrepreneurship that leads to social progress and economic development
MINASINVEST is a civil entity of public interest (OSCIP) as determined by Federal Law 9.790/99 and State law 14.870/2003, having as its principal social objective “the promotion of sustainable economic and social development through the experimentation of new models for promoting development.”
MINASINVEST is an enterprising partnership between state government and private corporations designed to lead marketing and investment efforts for Minas Gerais Economic Development Agencies and private interests.
MINASINVEST objective is to attract new business investment, locating new markets for Minas Gerais’ products and services, promoting the state as an ideal location for living and working, as well as mobilizing private resources for economic development.
TRANSFORMING MINAS INTO A BENCHMARK FOR KNOWLEDGE ECONOMY AND RESEARCH ORIENTED TO PRODUCTION CHAIN.
MINASINVEST brings together BUSINESS , the state’s leading RESEARCH AND INNOVATION UNIVERSITIES and STATE GOVERNMENT in a public/private partnership to build the state’s technology-rich economy. “ THE STATE OF MINAS GERAIS CLUSTERED BY INNOVATIVE CORPORATIONS WITH A WELFARE AND LIFE QUALITY SOCIETY.“
Strategy and targeting MinasInvest actions Resources and know-how
Concentration in intensive technology and innovation investments
Focus on selected sectors
Grouping the projects
Compliance with investors requirements
Venture capital firms
Multilateral organizations and funds
Universities and think tanks
Development banks and entities
Highly reputed consulting firms
Elaboration of consistent and attractive projects
Aggressive and pro-active marketing
Permanent interaction with the various stake holders
Highly technical consistency
Synchronization with State Government economic sectors
AN ENTERPRISING DEVELOPMENT ALLIANCE FOR MINAS GERAIS/BRAZIL
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:
overcoming bureaucratic bottlenecks that inhibit the adoption of performance-based models of administration.
breaking with inefficient management practices.
decentralizing and opening spaces for the involvement of the private sector in the process of development.
managing fiscal crises, economic externalities, and imperfect contracts in the credit markets;
overcoming the lack of clear regulatory function and market credibility;
Long-term planning: research and development programs that present an investment portfolio for attracting private sector interest;
Coordination 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) ENTREPRENEURIAL STATE CULTURE
BH SP RJ WITHIN A RANGE OF 800 KM OF ITS CAPITAL BELO HORIZONTE, MINAS GERAIS CONCENTRATES:
48% of the Brazilian population
58% of National GDP
62% of retail sales in Brasil
Source : Industrial Development Institute - INDI ECONOMIC POTENTIALS
TRANSPORT: 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.
COMMUNICATION: 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.
EDUCATION: the high quality of Minas education has been internationally recognized by UNICEF: 15.945 basic education schools, largest university network.
ENERGY: one third production of the electric power of the country.
EXPORTS in 2004: About 20 billion (20pct of Brazilian turn-over)
INVESTMENTS: it is forecasted about USD 20.6 billion in the next couple of years
LEGISLATION: 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
INTERNATIONAL 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.
COFFEE : 900 thousand hectares planted area, exporting annually about US$ 1 billion (about 58% of national exports).
MILK : Leading producer with annual production of 6.42 billion liters.
BEEF : 20.3 million head, the State boasts the second largest herd in the country.
CORN : 1.26 million hectares planted area.
SUGAR 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.
SOY BEANS : With 900 thousand hectares planted area, Minas is the sixth largest producer and exporter in Brazil.
LEATHER: concentrates approximately 22% of the tanning and leather processing plants in Brazil.
CHARCOAL : 2 million hectares of planted areas makes the State the nation´s largest producer.
WOODPULP AND PAPER PRODUCTION: great potential in view of extensive reforestation areas and environment concern.
Favorable climate, rich soil and enormous water reserves: US$ 17 billion GDP
JAIBA: 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.
HISTORY: 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.
ECOLOGY: 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. TOURISM: GREAT VOCATION
CAPITAL INVESTMENTS: protected by the Central Bank of Brazil, allows to convert credit into investments which can be set off against imports of assets without exchange coverage.
ACQUISITION, MERGING, FUSION: fully supported by Brazilian corporate laws.
TECHNOLOGY TRANSFER : Brazilian intellectual property law regulates the application of patents.
FUNDING, FINANCING AND INCENTIVES : besides national incentives, Minas offers a variety of financing schemes and incentives for new projects and petitiveness of existing ventures through its State development bank – BDMG, such as:
FIND (INDUSTRY INCENTIVE FUND): a credit instrument to foster industrial development through two financial support programs, financing fixed investments and working capital.
FUNDIEST: designed to develop strategic industries.
FDMM: to fund mineral and metallurgical projects
FUNDESE: for small and medium-size companies dedicated to new technologies.
PRO-FOREST: to fund forestry activities.
FASTUR : financial incentives to tourism in regions of recognized potential.
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:
SEDE – The State Secretariat of economic development: is in charge of the overall activities related to the economic development of the State.
BDMG – The Development Bank of Minas Gerais: manages state funds and finances enterprises.
CDI- The Company of Industrial Districts of Minas: is in charge of industrial areas making available full infra-structure.
FIEMG: 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.
INDI – Integrated Development Institute: It carries out research, elaborate investment opportunities in the State and assists interested investors.
JOÃO PINHEIRO FOUNDATION: renders technical services related to economic and social development.
CETEC – Technological Center Foundation of Minas: researches projects and technological services.
EUROCENTRO/AL-INVEST: is a cooperation program between European and Latin American companies and institutions.
INVEST BRAZIL: It is created by the Federal Government with an aim at attracting direct investments to Brazil. Main focus is infrastructure with a view to increase exports.
BRAZIL TRADE NET/SIPRI : created by the Ministry of Foreign affairs to foster Brazilian exports.
PARTNERSHIP 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.
To 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 .
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.
State 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.
HIGH TECH (SIMILAR TO AGREEMENTS WITH VARIOUS COUNTRIES, PARTICULARLY INDIA)
build a strategic partnership between the State of Minas Gerais and US high technology businesses to boost productivity and wealth creation in both countries.
US companies accessing the talents of Minas Gerais companies/universities producing high technology products that meet the rapidly changing needs of US industry, such as software, biotechnology and IT.
High tech for deep water oil and gas production.
INDUSTRIAL PRODUCTS HIGHLY CONSUMED IN MINAS GERAIS IN THE FOLLOWING PREDOMINANT SECTORS:
Infrastructure : waterways, railways, Industrial airport Tancredo Neves/Free Trade Zone