ADVOCACY Minas Gerais: a beacon for global investment

Record-breaking investments and sustainable development are driving prosperity in Minas Gerais

The state of Minas Gerais has been breaking record after record in attracting private investments from many different countries around the world. One of the factors behind this success is the management model adopted by the state government, which is focused on responsible development and guided by serious and effective administration, and good ESG practices, with the ultimate goal of prosperity and improvement in the quality of life of its inhabitants. In recent years, Minas Gerais has attracted, on average, investments of around R$80 billion annually (US$14.66 billion). These are record amounts that demonstrate an ever-increasing interest in a place that has so much to offer.

One of its main policies that has contributed to this is the incentive for clean energy sources. The state currently has the largest reserve of niobium in the world and the largest reserve of lithium in Brazil, which is why the successful Vale do Lítio (Lithium Valley) project was created. This project has been attracting billions’ worth of investments, which boost not only Minas Gerais’ revenue, benefiting the state’s most needy regions, but also its economic development.

It is also worthwhile to highlight the state’s intense work in the photovoltaic solar sector, led by the Sol de Minas (Minas Gerais Sun) project. With its implementation, Minas Gerais has become a leader in the sector and a national reference in adopting solar energy systems that power homes, businesses, industries and rural premises. Today, 100% of the 853 municipalities in Minas Gerais have at least one photovoltaic solar energy generation unit. The goal is to achieve zero net greenhouse gas emissions by 2050.

With such great effort and planning for responsible development, Minas Gerais has reached almost 10GW in solar energy generation, surpassing more than 150 countries. Furthermore, 99.5% of the electricity produced in the state comes from renewable sources. And Companhia Energética de Minas Gerais  (Minas Gerais Energy Company) has also been doing its part, by investing more than R$50 billion (US$9.16 billion) in 10 years (2019–2028).

The work of the Minas Gerais government in making the state increasingly attractive and economically diversified does not stop there. Minas Gerais is the country’s leader in coffee, milk and potato production, and the state government, in partnership with Banco de Desenvolvimento de Minas Gerais (Minas Gerais Development Bank), has given a further boost by announcing R$1.4 billion (US$256.7 million) in credit for cooperatives, producers and companies in Minas Gerais agribusiness. This has allowed the sector to increase its efficiency in the field, further diversifying production and, at the same time, encouraging the creation of new companies able to add value to agricultural products. Just to provide an idea of all this potential, agribusiness is already responsible for 22% of Minas Gerais’ gross domestic product.

To further leverage economic development, Minas Gerais invests in other sectors. One of them is Local Productive Arrangements: clusters of companies with the same production specialisation in a given municipality or region. They enable the expansion of production capacity for new technologies across several sectors, thereby increasing business opportunities throughout the state. There are already 70 LPAs in 339 municipalities in Minas Gerais, with more than 96,000 companies. In addition to the LPAs, the Minas Livre Para Crescer (Minas Gerais Free to Grow) programme has been streamlining the business environment to facilitate the creation of new companies. There are currently 462 municipalities with pro–economic freedom legislation, benefitting more than 11 million Minas Gerais residents and creating tax incentives for industry, foreign trade and wholesale trade, among others.

These efforts to modernise the economy, besides attracting a record number of investments, have shown concrete results in improving the quality of life of the people of Minas Gerais. In recent years, more than 924,000 direct formal jobs have been created in the state, which is a historic milestone.

Another point worth highlighting regarding socioeconomic development is the creation of Minas Reurb – Programa Mineiro de Integração e Regularização Territorial (Minas Gerais Programme for Territorial Integration and Regularisation). This programme aims to deliver property titles for urban settlements to thousands of Minas Gerais residents. Since its creation, more than 12,000 property titles have been delivered and another 57,951 premises have been made available for regularisation in the coming years. With the formalisation of premises, citizens now have access to basic sanitation, water and electricity.

With a vibrant economy and increasingly growing socio-economic development, Minas Gerais is being consolidated as a place with a friendly business environment, which is highly attractive to those looking to invest. And the state also has some very important advantages. Its location is privileged: it is in the economic centre of the country. Its population is 21 million inhabitants, which favours the acquisition of domestic consumers. And its logistics are excellent: Minas Gerais has the largest road network and the second-largest rail network, and is within a one-hour’s flight of 70% of the country’s gross domestic product.

All of this is complemented by an increasing number of higher education institutions and educational institutions focusing on technical courses. This education network will produce new technologies, innovate and connect a qualified workforce to the demands of companies and the market as a whole.

If you are looking to invest in a place with legal security and increasing investments in economic and social development and infrastructure, this is the place for you. Invest in Minas Gerais.

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