São Paulo,
Number 1 State in Brazil
Luciano Almeida
President
April 8, 2014
Investment
Promotion
Agency
Investe São Paulo
Mission
To be the gateway to new investments
or expansion of existing businesses,
generating innovation, employment and income,
in addition to the continuous improvement
of the competitive environment and
of the image of the State of São Paulo
Investment Promotion Agency
Areas of Activity
Business Prospection
• Identification of sectors and companies with investment potential
Investment Projects
• Technical support and orientation to investors: site location, taxes, infrastructure
• Contact with public and private institutions aiming as investment facilitation
Institutional Activities
• Reception of foreign delegations and organization of international missions
• Support and guidance for municipal governments
SP Actions for the Promotion of Competitiveness
• Labor training, Taxation, Innovation, Infrastructure and Licensing
• Studying and proposing public policies
Promotion of the image of the State of Sao Paulo
Our Customers
Investments
US$ 11.77 bi
Direct jobs
50,468
71 announcements
Brazil on the World Stage
and São Paulo Highlights
Brazil, the 7th economy of the planet
GDP - US$ billions
4th Germany
2,433
11th Canada
3,366
9th Russia
6th UK
1,953
1,770
1,980
2,580
15,653
8th Italy
5,984
5th France
8,250
3rd Japan
10th India
1st USA
1,946
2nd China
2,245
7th
Brazil
12th Australia
1,493
Source: IMF - year 2012
Investment Promotion Agency
Brazil and São Paulo Comparison
São Paulo’s
Share
Territory
8,515,000
Km²
248,000
Km²
3%
Population
193.9
million
41.9
million
22%
GDP
nominal
US$ 2,475
billion
US$ 750
billion
33%
GDP
per capita
US$ 11,611
US$ 17,908
50% larger
Source: IBGE, Banco Central e SEADE
Exchange Rate: US$ 1 = R$ 1.95
Investment Promotion Agency
São Paulo Highlights
•
The territory has the same size as the UK’s
•
42 million inhabitants - population equivalent to
Argentina’s and Canada’s
•
GDP of US$ 700 billion - equivalent to countries such as
Indonesia, the Netherlands and Turkey
•
World´s number one producer of sugar, sugarcane
ethanol and orange juice.
•
3rd largest economy in Latin America
•
3rd largest aircraft manufacturer in the world
•
15th automotive producer in the world
•
Latin-American headquarters of the main multinational
corporations
•
75% of fairs and events in Brazil
•
55% of the energy matrix is renewable
Foreign Trade and
Investment in Brazil
Mercosur
• Brazil is a founding member of Mercosur, a free trade area and a
customs union which is progressively consolidating.
• Member states are Argentina, Brazil, Paraguay, Uruguay
and Venezuela.
• In 2012, Mercosur had a combined GDP which accounted for
almost 80% of South America’s total.
• Mercosur is the world’s third-largest free trade area, after
the European Union (EU) and the North American Free Trade
Agreement (NAFTA).
• In December 2012, Bolivia signed an accession treaty to join
Mercosur.
Source: Investment Guide to Brazil 2014
Investment Promotion Agency
Free Trade Agreements
• Mercosur currently has free trade agreements with Bolivia,
Chile, Colombia, Ecuador, Peru (associate members) and
Israel.
• Free trade agreements have been signed with Egypt and the
State of Palestine and are pending ratification.
• Mercosur is currently negotiating a free trade agreement
with the European Union (EU), which, if successful, would create
one of the world’s largest free trade areas.
Source: Investment Guide to Brazil 2014
Investment Promotion Agency
Tariff Preferences
• Brazil is also a member of the Latin American Integration
Association (ALADI), which aims at establishing a regional free trade
area.
• At present, ALADI members benefit from tariff preferences in
specific sectors.
• Brazil currently has preferential trade agreements with
Cuba, Guyana, Mexico and India.
• The preferential trade agreement with the Southern African
Customs Union – SACU is pending ratification.
Source: Investment Guide to Brazil 2014; Ministry of Development, Industry and Foreign Trade website
Investment Promotion Agency
Brazil's Foreign Trade
Brazil's Trade Flow (US$ billions)
(sum of imports and exports)
482
384
371
281
466 482
281
229
192
160
77
113 109 97 111 114 108 122
101
96
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Ministry of Development, Industry and Foreign Trade
Investment Promotion Agency
Brazil's Trading Partners
Brazil's Trade Flow Breakdown by Major Trading Partners Selected Years
31%
29%
27%
23%
24%
24%
22%
21%
21%
20%
20%
19%
18%
13%
13%
12%
4%
2000
7%
7%
6%
7%
5%
4%
3%
2005
2010
Asia
Africa
Latin America
Middle East
European Union
Other partners
6%
6%
4%
4%
2013
United States
Source: Ministry of Development, Industry and Foreign Trade
(1) The Latin American and the Caribbean region includes Mercosur.
Investment Promotion Agency
Foreign Direct Investment into Brazil
US$ billions
66.7
65.3
64.0
48.4
45.0
34.5
26.0
18.1
16.6
15.0
18.8
10.1
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Brazilian Central Bank
Investment Promotion Agency
FDI flows over the past 3 years
2010
2011
United States
198
China
115
2012
United States
227
China
Belgium
86
Belgium
Hong Kong
83
Hong Kong
124
103
96
United States
147
China
120
Hong Kong
73
Brazil
65
United Kingdom
51
Brazil
67
United Kingdom
63
Brazil
49
Australia
66
France
59
Singapore
49
Singapore
64
Singapore
54
Germany
47
Russia
53
Australia
49
Ireland
43
United Kingdom
51
Canada
47
Russia
43
France
41
Russia
44
Spain
41
Canada
41
Ireland
40
Australia
35
Germany
40
India
27
Swiss
33
Italy
34
Chile
26
France
31
India
32
Luxembourg
23
Saudi Arabia
29
Spain
30
Belgium
19
0
50
Source: UNCTAD
100 150 200 250
0
50
100 150 200 250
0
50
100
150
200
Investment Opportunities
São Paulo PPPs Program
The most
diverse program
Including areas like: Public transport, Logistics, Health, Housing
experienced program
The first PPP to be implemented in Brazil – Line 4 yellow of subway
innovative program
The first MIP law
Investment plan
of more than
of Brazil
US$ 20 billion
Investment Promotion Agency
Successful partnership
Line 4 – Yellow (subway)
Type: Public with sponsored concession
Deadline: 30 years
Construction Investment:
US$ 2,8 billion.
PPP Investment: US$ 500 million
Actual State: 6 operational stations
Awarded as the best PPP
in Latin America and the Caribbean - 2013
(by IFC - member of the World Bank Group)
Listed in the Infrastructure 100: World Cities
Edition – a KPMG report
PPP projects
Public Mobility
4 Projects: US$ 15.8 billon
Health Care and Medicine Logistics
2 Projects: US$
406 million
Housing Construction
Investment: US$
2 billion
Infrastructure
2 projects: US$
2 billion
Investment Promotion Agency
Thank You!
Luciano Almeida
President
Telephone: + 55 11 3218 6060
E-mail: [email protected]
www.investe.sp.gov.br
SECRETARIA DE DESENVOLVIMENTO
ECONÔMICO, CIÊNCIA E TECNOLOGIA