AN ENTERPRISING INVESTMENT

PROMOTION AGENCY
THINKING AND ACTING
LOCALLY AND GLOBALLY...
SUSTAINABLE DEVELOPMENT
“ 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)

MINASINVEST believes there should exist an

appropriate balance between public interest and
private entrepreneurship that leads to social
progress and economic development
 TARGETING STRATEGY
‰ IDENTIFYING MARKET ¾ CAPITALIZING ON THE
NICHES AND DIRECTING MOST DISTINGUISHED ASSET
OUR STRATEGY

MINASINVEST TOWARDS:
OF MINAS:
9SECURING MINAS GERAIS
¾:
COMPETITIVE ADVANTAGE
IN TERMS OF SITE - HUMAN CAPITAL
LOCATION . ADOPTING AS A STRATEGY
9UTILIZING CUTTING OF BUSINESS INCUBATION:
EDGE INNOVATION THAT
-THE KNOWLEDGE
SUPPLANTS TRADITIONAL
COMPETITIVENESS ECONOMY
CONCEPTS. -(R&D, SCIENCE, APPLIED
TECHNOLOGIES
 PARTNERSHIP FOR INNOVATION

UNIVERSITY PRODUCTION SYSTEM

TACTICS

‰ KNOWLEDGE AND ¾ INDUSTRIAL AND SERVICE

RESEARCH TARGETED TO ENTERPRISES INTENSIVE IN
SPECIFIC PROJECTS – KNOWLEDGE
ON INDUSTRY DEMAND ¾(INNOVATIVE SME)

FINANCING:
9CORPORATE VENTURE CAPITAL
9 R&D DEVELOPMENT INSTITUTIONS
9GOVERNAMENTAL SHARESTAKE
 As a socially responsible investment organization, we committ to the
following :
PRINCIPLES COMMITMENT
1. We will incorporate ESG issues into general management, investment
and decision-making processes.

2. We will be active managers and agents and incorporate ESG issues

into our management and investment policies and practices.

3 We will seek appropriate disclosure on ESG issues in our

management, agency and in the entities in which we invest and/or
attract investment.

4. We will promote acceptance and implementation of the Principles

within our organization and in the organizations we work for.

5. We will mobilize to enhance our effectiveness in implementing the

Principles.

6. We will report on our activities and progress towards implementing

the Principles.
In compliance with UN General Secretary initiative
UNEO – Finance Initiative – UN Global Compact
BRIEF DESCRIPTION

PERSONALITY NATURE GOALS SERVICES

9 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.”
BRIEF DESCRIPTION

PERSONALITY NATURE GOALS SERVICES

9 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.
BRIEF DESCRIPTION

PERSONALITY NATURE GOALS SERVICES

9 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.
BRIEF DESCRIPTION

PERSONALITY NATURE GOALS SERVICES

9 The role of MINASINVEST is to target and attract those types of

investment that will support the government’s broader economic
development goals and objectives.

. MINASINVEST is geared to the contemporary global context in its

9
approach of attracting and retaining FDI – foreign direct
investments.
BRIEFING OF SERVICES
SERVICES

9 Stimulating
9 Stimulating aa favorable
favorable
Attraction of Business
Business climate.
climate.
quality FDI –
Foreign Direct 9 Identifying
9 Identifying simple
simple and
and
practical
practical alternatives,
alternatives, facilitating
facilitating
Investment the
the administrative
administrative barriers.
barriers.

Image Policy Service Investment

building advocacy facilitation generation
 ‰ STIMULATING
BUSINESS CULTURE,
“THE STATE OF CONDITIONS AND
MINAS GERAIS MIND SET.
CLUSTERED BY
INNOVATIVE
‰TRANSFORMING MINAS
VISION CORPORATIONS INTO A BENCHMARK FOR
WITH A KNOWLEDGE ECONOMY
WELFARE AND AND RESEARCH ORIENTED
LIFE QUALITY TO PRODUCTION CHAIN.
SOCIETY.“

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.
 Strategy
Strategy and
and
targeting
METHODOLOGY

targeting
•Concentration in intensive technology and
innovation investments
•Focus on selected sectors MinasInvest
MinasInvest
•Grouping the projects actions
actions
•Compliance with investors requirements
•Elaboration of consistent and
attractive projects
Resources
Resources and
and •Aggressive and pro-active
know-how
know-how marketing
•Permanent interaction with
•Venture capital firms the various stake holders
•Multilateral organizations and •Highly technical consistency
funds •Synchronization with State
•Universities and think tanks Government economic sectors
•Development banks and entities
•Investment banks
•Highly reputed consulting firms
 AN ENTERPRISING DEVELOPMENT
ALLIANCE FOR MINAS GERAIS/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.
9EXPORTS in 2004: About 20 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.
COMPREHENSIVE FACILITIES
9CAPITAL 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.
9ACQUISITION, MERGING, FUSION: fully supported by Brazilian corporate
laws.
9 TECHNOLOGY TRANSFER: Brazilian intellectual property law regulates
the application of patents.
9 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:
9FIND (INDUSTRY INCENTIVE FUND): a credit instrument to foster industrial
development through two financial support programs, financing fixed
investments and working capital.
9FUNDIEST: designed to develop strategic industries.
9FDMM: to fund mineral and metallurgical projects
9FUNDESE: for small and medium-size companies dedicated to new
technologies.
9PRO-FOREST: to fund forestry activities.
9FASTUR: financial incentives to tourism in regions of recognized potential.
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.
9INVEST 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.
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.
POSSIBLE COOPERATION EXIMBANK/MINASINVEST
9 build a strategic
9 US companies accessing the
HIGH TECH (SIMILAR TO
AGREEMENTS WITH
VARIOUS COUNTRIES,
PARTICULARLY INDIA)
partnership between the
State of Minas Gerais and
US high technology
businesses to boost
productivity and wealth
creation in both countries.
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.
INDUSTRIAL PRODUCTS HIGHLY CONSUMED
IN MINAS GERAIS IN THE FOLLOWING
PREDOMINANT SECTORS:
9Mining
9Agriculture
9Aircraft
9Infrastructure : waterways, railways,
Industrial airport Tancredo Neves/Free
Trade Zone
9CIT
9Energy
9Steel production
9Environment/reforestation
9Wood pulp and paper production
9Refrigeration equipment for foodstuff