A closer look at Minas Gerais: a state to invest and a destination for your exports

A closer look at Minas Gerais: a state to invest and a destination for your exports

Strategically located in the center of South America and in the largest consumer hub in Brazil, Minas Gerais is the second major export state. It has an area extension larger than France and the 3rd largest industrial GDP in Brazil totaling 9.2% of the entire Brazilian GDP (comparable to the country GDP of Chile and the Czech republic).

Over the past decade, Minas Gerais GDP had a better growth track than the States of São Paulo and Rio de Janeiro. In addition to that, the cost of living is approximately 27% lower than the average of those states. The metropolitan area of Belo Horizonte, the capital of Minas Gerais, is the 5th largest industrial region of Latin America.

Besides the well known and important Mining and Agriculture sectors, the industry of Minas Gerais is diversified, including high added value segments;

IT, Micro-electronics and Electro-electronics – 2nd largest center of companies in the electro-electronic segment of Brazil.

Minas Gerais is the 3rd Brazilian GDP in the ICT segment. The turnover of this segment reaches almost 2.5 billion per year, generating an average of 15 thousand direct jobs and over 6 thousand companies.

Investment opportunity (click here for more info): Hardware and software for the aerospace segment; Onboard software and IoT for automobile; Sensors and Softwares for Mining; Electronic Components for home appliances.

Renewable Energy – 2nd energy consumer market in Brazil

Minas Gerais has a Solar Radiation and Wind Potential availability above Brazilian average. Eight solar parks shall be implemented in the north and northeast regions of the State, tallying an installed voltage of 240 MW. Initial production of an organic photovoltaic film to be installed in cars and buildings.

Investment opportunities (click here for more info): Solar panels manufacturing; Implementation of wind farms; Implementation of Biomass energy plants; Urban waste energy plants.

Automotive- 2nd largest Brazilian automobile cluster

Around 20% of Brazilian automobile productionconcentrate in Minas Gerais.It is expected that the state’s auto parts market, of about R$ 35 billion worth, reaches an approximate value of R$ 74 billion until 2020, representing the largest growth in Brazil. Besides, the auto parts industry has a great representativity holding 13,5% of overall Brazilian sales. Follow other characteristics of the market.

Investment opportunity (click here for more info) : Car parts manufacturing

Aerospace – 2nd largest airplane fleet of Brazil

Nowadays, 35% of Brazilian aerospace production chain is concentrated in Minas Gerais. The commercial deficit of the aerospace segment in Brazil is around US$ 2.55 billion. Thus, attracting companies is a must, both to supply the chain and also to comply with offset agreements (the commercial deficit for the defense area is of US$ 165 million).

There are the segment hubs in Minas Gerais: Belo Horizonte Metropolitan Region (International Airport); South Zone of Minas Gerais state (Helibras); and TriânguloMineiro (an area in the west of the state of Minas Gerais).

Investment opportunities (click here for more info) : MRO Companies; Aircraft parts and engine production through auxiliary manufacturing; R&D Centers on Avionics – on board softwares.

Life Sciences – The capital of Minas Gerais has the largest number of health facilities per citizen

In demographic terms, there are two main characteristics of Brazilian population that drive this segment and may keep on influencing it along the next years.

Firstly, the Brazilian population is growing older. As the population lives longer, it is observed a higher incidence of age related diseases which demand specific diagnostics and treatments. The second is due to the fact that, in one decade, the largest part of the population will be aged between 20 and 49, i.e., in a productive age. As people enter the job market, the potential for consumption reaches higher levels due to a higher income available for health related expenses.

Investment opportunities (click here for more info) : R&D Centers; Pharmaceuticals; Medical equipment.

For more information on Minas Gerais and how to invest or do business in Brazil please contact the NBSO Brazil office.

T: +55.31.35043381  –  E: info@nbso-brazil.com.br

Source: FIEMG