TRADE PROMOTION SECTION Quarterly Business Newsletter | Issue No. 20 | 3rd Quarter 2019

This is a quarterly publication by the Embassy of Brazil in Nairobi which aims to create awareness of existing trade and investment opportunities between Brazil and Kenya, Uganda, Rwanda, Somalia and Burundi.

Quarterly Business Newsletter | Issue No. 20 | Third Quarter 2019 THE INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) SECTOR IN BRAZIL 3 Mobile Telephony 4 Brazil’s gaming industry 6 Telemedicine in Brazil 6 Opportunities in the ICT Sector in Brazil 7 Regulation and Government Institutions within the ICT Sector 8 THE STATE OF 10

RECENT HIGHLIGHTS 21

BRAZIL’S DEMOGRAPHIC AND ECONOMIC DATA

Surface area (Sq. Km) 8,510,820,623 km2 DEMOGRAPHIC DATA (WORLD BANK/IBGE) Total Population (May 2019- estimate) 210,124,283 Population growth rate (2016) 0.80% per annum Population density (2016) 24 inhabitants/km2 Urban population growth rate (2016) 1.15% per annum ECONOMIC DATA (IBGE DATA) GDP (2017 in US$) 1.731 Trillion Inflation target 2019 4.25% ± 1.5% Inflation (IPCA) May 2019 0.13% 12 month cumulative inflation (May 2019) 4.66%

Trade Balance (BCB Data) Exports (Jan-May) USD 21.2 billion Imports (Jan-May) USD 14.9 billion Trade surplus (Jan-May) USD 6.3 billion Total trade flow between Brazil and Kenya (2019) USD 22.85 million

Financial and Capital Markets) – (BCB Data) Base Lending Rate (Selic Rate – (May 2019) 6.4 %p.a Long term lending rate (TJLP – (May 2019) 6.26 %p.a Stock Market Value (IBOVESPA) (May 2019) USD 855.8 billion Number of companies listed in BOVESPA 333 Embassy of Brazil in Nairobi

THE INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) SECTOR IN BRAZIL

or Information and Communications Companies (ABES) in partnership with International ICTTechnology (or technologies), is the Data Corporation (IDC). It is followed by Mexico (US$ infrastructure and components that enable modern 20.6b), Argentina (US$ 8.4b), and Colombia (US$ 7b). computing. Although there is no single, universal Brazil is the ninth largest ICT market globally. definition of ICT, the term is generally accepted Brazil accounts for more than 45% of total investments to mean all devices, networking components, in the IT sector in the region. The Brazilian ICT applications and systems that combined allow business market (which includes hardware, software, people and organizations (i.e., businesses, nonprofit services, cloud, and exports) achieved a turnover of agencies, governments and criminal enterprises) to US$ 50.88 billion in 2017, up 12.7 percent over the interact in the digital world. previous year. When the telecom (voice, mobile and ICT encompasses both the internet-enabled sphere data) and in-house IT markets are added, the turnover as well as the mobile one powered by wireless totaled US$ 121.6 billion, up 5.4 percent. In total, networks. It also includes antiquated technologies, the technology market accounted for 7.1 percent of such as landline telephones, radio and television GDP, according to a study prepared by the Brazilian broadcast -- all of which are still widely used today Association of Information and Communications alongside cutting-edge ICT pieces such as artificial Technology Companies (Brasscom). There are intelligence and robotics. ICT is sometimes used approximately 195,000 IT companies in Brazil with synonymously with IT (for information technology); 69.3 per cent of them based in the Southeast region, however, ICT is generally used to represent a broader, where the cities of São Paulo and Rio de Janeiro are more comprehensive list of all components related to located. computer and digital technologies. The Brazilian government has also revised the high Brazil is Latin America’s largest IT market with US$ tariff rates, and the current rates are based on World 105b in investment according to a recent study Trade Organisation (WTO) which makes the ICT prepared by the Brazilian Association of Software sector lucrative for foreign investors.

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Information Communication and Technology applications have played a major role in transforming E-commerce activities Brazil across different sectors. For instance, IT Percentage of internet users who report perfoming each activity in the past month advances in the health area, such as telemedicine, applications focused on cancer, applications for prescription process, electrocardiogram in the Searched Visited an online Purchased a Made an online Made an online online for a retail store on product or purchase via a purchase via a clouds, and remote tele-monitoring of chronic service or a the web (any device) service online laptop or desktop mobile device patients has improved access to professional medical product to buy (any device) computer care especially for those in the rural parts of Brazil. ICT has also revolutionised the agricultural scene with the use of drones and remotely controlled farm 89% 90% 68% 50% 45% machinery and irrigation as well as climate monitoring technologies. Other sectors that are experiencing a shift include manufacturing and industry with Annual Digital Growth adoption of Industrial Internet of Things as well as In 2019, it was reported that 10 million more Brazilians the gaming industry. This edition takes a closer look stated having access to the internet, a growth of 7.2% at the ICT scene in Brazil as well as opportunities for in comparison to 2018 report. There were 7.7% investment. more active social media users in Brazil, totalling Mobile Telephony 140 million users. There was a decrease in mobile subscriptions of 2.9%. However, there is still more Mobile telephony is Brazil’s largest ICT subsector, than one mobile device per inhabitant in Brazil. It is accounting for 43.5% of the sector’s gross revenues common for subscribers in Brazil to have more than in 2017 and for 72.9% of subscribers. By 2019, one subscription to cut on cost as network operators’ reports indicate that there are 215.2 million mobile offer free of charge call for communication within the connections in Brazil, which represents an increased same network. The decrease is probably justified by penetration of 102% of the population. Mobile the increase in smartphone usage whereby users rely internet usage stands at 66% and it is estimated more on mobile data to make phone calls eliminating that Brazilians spend an average of 4h 45 min each the need for multiple subscriptions. day on the internet on their mobile devices. This represents just over 50% of all the time they spend Internet Penetration and Usage online every day. Brazil is the third country in mobile Internet penetration has reached 70% of the internet usage in the world, behind Thailand and the population in Brazil, above the global average of 57%. Philippines. 61% of all Brazilians access their social More than 149 million out of the country’s nearly 210 media accounts through mobile devices, an increase million inhabitants are internet users. It is estimated of 8.3% in comparison to 2018. 63% of Brazilians that 85% of internet users in Brazil browse the web own a pre-paid mobile phone which is lower than the every day. Brazil is second to the Philippines in terms global average of 75%. It is estimated that 61% of of hours spent on the internet. Brazilians spend a internet users in Brazil use mobile banking. total of 9h 29 min per day on the internet, way above the global average of 6h 42 min. Connected money Understanding internet users’ online nancial activities Time spent with media Average daily time spent consuming and interacting with media (survey based)

Purchase items Use mobile Make mobile online using a Own some form banking payments mobile phone of cryptocurrency Average daily time Average daily time Average daily TV viewing Average daily time spent using the spent using social time (broadcast, streaming spent listening to internet via any device media via any device and video on demand streaming music $

61% 38% 45% 8.2% 9h 29m 3h 34m 3h 26m 1h 19m

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Fintech in Brazil and healthcare. A study commissioned by BNDES in 2015 showed that a widespread IoT adoption could Fintechs are a segment of companies on the add $200 billion to the country’s revenues by 2025. intersection between the technology and financial These projects integrate as well as other emerging services sectors that are adopting scalable business technologies such as blockchain and artificial models to innovate in products and services targeting intelligence. The government has also developed the particular customer needs. They provide their Information, Communications and Cyber Security solutions based on disruptive technologies such as Strategy to facilitate Brazil’s transition into a digital blockchain, big data cloud, Internet of Things among economy. These strategies aim to harmonize the others. The number of fintechs mapped in Brazil federal government initiatives related to the digital increased from 244 to 370 in 2017, with companies environment, to take advantage of the potential acting in lending, investment, financial management, of digital technologies to promote sustainable and payments, insurance, crypto currencies, debt inclusive economic and social development. The renegotiation and other services – more than the rest strategies also address topics such as telecom of Latin American countries combined. Data from infrastructure, taxation and cyber security. Finnovista and the Fintechlab4 shows that in 2017, 71% of all Brazilian fintechs were located in São Brazil has a robust industrial sector both in terms Paulo, 8% in Rio de Janeiro and 5% . of sizes of companies and industrial activity. The The main segments in fintech are in Payments and manufacturing industry is responsible for more than Remittances (electronic money transfers), Enterprise 21% of the Brazilian GDP. Investment and growth of Financial Management (organisation of financial data the industrial sector in Brazil have for decades been for companies) and Consumer and Business Lending. boosted by fiscal incentives related to job creation. As Although still not the largest, the fastest growing a consequence of having fiscal incentives linked to job areas are Digital Banking and Investments in Wealth creation, adoption of new technologies to improve Management and Markets & Trading. efficiency like Industrial Internet of Things (IIoT) is still at an incipient level across Brazilian industries The most well-known and largest fintechs in Brazil as technology most often replaces manual labour are in the areas of digital banking (Nubank) and in industries. However, the automotive industry, payments (Stone Pagamentos and Pagseguro; both and beverage production industry have been in the companies recently had an Initial Public Offer in frontline with regards to adaptation of IIoT. the US). These three companies are Brazil’s fintech unicorns (privately held startup company valued at All IIoT companies which adopt IOT technology need over $1 billion). Among the Brazilian fintechs, 30% to submit their equipment for homologation. This is a have already expanded abroad. 81% of them have process of certifying or approving a product to indicate businesses in Latin America and the Caribbean, 11% that it meets regulatory standards and specifications, in the US and Canada and 5% in Europe. such as safety and technical requirements in Brazil. Telecommunication equipment, which includes IIoT Internet of Things (IoT) devices, cannot be legally imported or sold in Brazil. IoT is short for Internet of Things. The Internet of A few examples of IIoT devices that require Things refers to the ever-growing network of physical homologation are: Lora Gateways (LPWAN), Lora objects that feature an IP address (Internet Protocol) Endpoints (LPWAN), WiFi access points, Sigfox for internet connectivity, and the communication that base stations or Gateways (LPWAN), Sigfox Nodes occurs between these objects and other Internet- with RF modules (LPWAN), Other RF modules for enabled devices and systems. IoT applications, LowPan Routers, Routers and One of the highlights in terms of trends as per WirelessHART adapters. International Data Cooperation (IDC) report is the rise Data Protection Laws are in place in Brazil which in Internet of Things (IoT) initiatives. This exceeded create a new legal framework for the use of personal $8 billion in business in 2018 for Brazil. Local data in Brazil, both online and offline, in the private corporate interest in the IoT scene is largely driven by and public sectors. These laws supplement more the government’s national IoT plan. The plan seeks than 40 legal norms at the federal level that directly to advance Brazil’s IoT ambitions across four areas and indirectly deal with the protection of privacy and namely: smart cities, agriculture, manufacturing, personal data in a sector-based system.

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Brazil’s gaming industry annually, which brings the latest international gaming innovations and community to Brazil. Brazil’s gaming industry has been skyrocketing. The industry has grown 13 times between 2015 and ABRAGAMES (Associação Brasileira das 2016. In 2016, Brazil’s gaming industry accounted Desenvolvedoras de Jogos Eletrônicos), the gaming for US$1.5 million. Last year, the industry jumped to association, has been nurturing a partnership with US$20 million and it is estimated to keep growing. the Brazilian Agency for the Promotion of Exports Brazil boasts not only one of the largest profits in and Investments (Apex-Brazil) to promote Brazilian- Latin America’s gaming industry, but also has the designed games abroad. Through this initiative, the 12th largest gaming market in the world. In 2017, association introduced the Brazilian gaming industry Brazil brought in US$4.1 billion in the gaming market, to big-name companies like Google and Electronic accounting for one fourth of the entire region’s profits Arts (EA). Abragames has been able to create digital in the industry. The gaming market is projected to game development classes with local institutions, like increase an average of 13% in 2019. Brazil hosts the the Brazilian university Anhembi Morumbi, in order BIG Festival (Brazil’s Independent Games Festival) to shape the future of Brazil’s gaming innovators.

Telemedicine in Brazil Telemedicine is the remote delivery of healthcare services, such as health assessments or consultations, over the telecommunications infrastructure. Telemedicine already exists in Brazil. The Brazilian National Medicine Council (CFM) has revealed that it has plans to introduce regulations that will formally allow for consultations, diagnostics and even surgeries to be performed using long-distance communication platforms. Platforms such as WhatsApp, Facebook Messenger and Facetime are currently being used to make diagnoses. Patients can send photos of physical wounds to doctors or send copies of their test results to get medical advice. The services help reach patients in rural areas of Brazil where medical Agritech in Brazil services are scarce and the cost of traveling to larger cities to get treated is too expensive. Brazilian agriculture has faced a technological revolution in the last 50 years. In that period, agriculture in Brazil Brazil uses telemedicine across different transformed its production to become one of the largest part of the country. An example include one exporters in the world. in the southern state of Rio Grande do Sul, TelessaúdeRS which provides eye exams and Brazil has tailored its technology to suit the tropical soils other services remotely to underserved regions to make them suitable for crop farming which has seen where patients have difficulty obtaining medical its production soar. This can be attributed to investments services. The program has eight centres staffed in technology. Brazil is now the world’s second-largest with qualified ophthalmologists and each producer of biotech crops. Some of the technologies that equipped with cameras, computers and other have been used in Brazil include the use of drones which equipment that help gauge patients’ vision, eye allow the climate to be monitored more accurately, as they pressure and refraction. The services lighten are beneath the clouds level. This technology means that the load on in-person offices. For example, they can make all their decisions from the office rather of the 14,000 people waiting to see an eye than from the field, and identify planting gaps and weed doctor, 5,000 were examined remotely. Among control requirements. Farmers can also monitor their the 5,000, nearly two-thirds were from rural harvest in real time through their cell phones. areas. Brazil offers a wide range of equipment Brazil has also utilised ICT in traceability of produce in telemedicine which are of high quality. from farmers to market or from the production level in

6 Quarterly Business Newsletter | Issue No. 20 | Third Quarter 2019 Embassy of Brazil in Nairobi manufacturing to consumer. This technology is efficient (DGPS) sensors, GIS software, and a control tape. in ensuring food safety and ensures compliance of These can be called intelligent implements. The good agricultural practices as consumers are able DGPS sensors determine the latitude, longitude, and to know what kind of technology or pesticides were altitude within a management unit. The GIS software used in the production of food. with stored geographical databases provides the context within which the intelligent implements are Some of the technologies that have been used in working. The control tape gives the microcomputer smart farming include tractors, harvesters, airplanes, instructions on rate of application of materials, and other powered equipment used to apply seed depending on which operation is being performed. and agrochemicals for crop production, when The control tape can be an inch diskette generated equipped with powerful, harsh environment-tolerant from the GIS-based GOSSYM/COMAX/WHIMS microcomputers, differential global positing satellite system.

Opportunities in the ICT Sector in Brazil Optical Fibre The World Economic Forum pointed the ICT sector as There are investment opportunities in increasing a catalyst to economic transformation. The Brazilian optical fibre as this technology is dependable government has placed a lot of effort to enable and on other technologies and innovations that are start a digital transformation, encouraging the ICT directly associated with the infrastructure of ecosystems. Below are some of the areas of focus telecommunications services. New technologies that provide an opportunity for investors that will such as streaming in 4G and 5G will require a better transform the ICT sector in Brazil. connectivity experience, which may demand that the infrastructure comply with this new increase in 5G demand. Thus, the optical fiber plays a vital role in The number of 4G users’ continues to increase facilitating the expansion of new business models, in Brazil with operators still monetizing on 4G bringing connectivity to the population. infrastructure. It is expected that the amount of The Cloud users keeps increasing for the next years, especially with new technologies like the 5G that will provide The Cloud was selected as one of the main pillars high-speed connections between numerous devices. of the development of the national ICT sector, since 5G especially presents an opportunity since this it changes the concept of supply of some products, will enable new ecosystems such as the Internet of directly impacting the economy. With the increased Things, connected cars and several others that are connectivity made possible by 5G and fiber optics, the one of the main areas of the digital transformation. massive data generation by the various sensors and This also presents opportunities for investments in devices in IoT, 4K, Games on Demand, among others, 5G enabled technology in health (remote monitoring will require dynamic allocation of space, increased of patients) to agribusiness (monitoring of crops and processing power and cost reduction. New cloud- plantations). enabled business models and user-friendly services generate immediate benefits for the population by reducing bureaucracy for access to services (public and private).

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Safe City up in voluminous books. There are no centralised systems to handle prescriptions electronically, so There are opportunities in investments that will the only form of control that exists is the retention improve security and surveillance, communication, of the prescription at the drugstore. Other areas intelligence, command, and control capabilities that are not totally untouched but still have lot of to make cities safer. These include smart potential in the Brazilian market are within mobile cameras, artificial intelligence software and facial m-Health and IoT. The quick rise of the number recognition. of diseases related to sedentarism like diabetes, E-health a disease with extremely high mortality rates in There are gaps presenting an opportunity in Brazil, combined with the fact that Brazilians are e-Prescribing. Most prescriptions issued by clinics or extremely concerned about their health, creates a even at smaller health centres are handwritten, and great market for real time monitoring solutions via the options for medicine prescriptions are looked the internet.

Regulation and Government Institutions and laboratory tests necessary for the certification within the ICT Sector and approval process. The list of OCDs designated by Anatel to conduct certification processes Telecommunication products and accessories are is available on Anatel’s website under the tab required to have a certification and homologation “Informações Técnicas” then “Certificação de by the Brazilian Telecommunication Agency Produtos”, and “Organismos de Certificação (Anatel) in order to be legally commercialized and Designados (OCDs)”. Based on the analysis of the used in the country. product, they can provide a cost estimate. ICT products to be sold and used in Brazil For testing, companies should select an accredited must have a Certificate of Conformity issued Brazilian laboratory from among those listed by a Designated Certification Body (OCD in following the item “Laboratórios Credenciados” on Portuguese), verifying that they comply with the same page indicated above. The OCD can also Brazilian regulatory requirements. This certificate assist in the selection of a laboratory according must also be approved by Anatel, Brazil’s national to current regulations. It is also important to note telecommunications agency. The chosen OCD that, for imported products, the manufacturer will examine the technical characteristics of the must have a local representative, established product and determine the applicable regulations according to Brazilian legislation, who will be

8 Quarterly Business Newsletter | Issue No. 20 | Third Quarter 2019 Embassy of Brazil in Nairobi responsible for product supply and warranty in Selling to the Government Brazil. For additional information please visit According to Government of Brazil procurement Anatel’s site www.anatel.gov.br law, price is the overriding factor in selecting The Government of Brazil has eliminated most suppliers and the GoB may not make a distinction import prohibitions, with certain exceptions. In between domestic and foreign-owned companies general, all used consumer goods are prohibited during the tendering process. In most cases, to sell from being imported. Used capital goods are to the government one must have a local presence allowed only when there is no similar item produced and/or partner to be allowed to participate in locally. Remanufactured goods are still considered the bidding process. When two equally qualified used goods. There is also specific legislation that vendors are considered, the law’s implementing prohibits the importation of products that the regulations provide a preference to Brazilian goods Brazilian regulatory agencies consider harmful to and services. Brazil permits foreign companies health, sanitation, national security interest, and that have established legal entities in Brazil to the environment. compete for procurements financed by multilateral development bank loans. Data Protection Laws are in place in Brazil which create a new legal framework for the use of Distribution & Sales Channels personal data, both online and offline, in the Most distributors in Brazil are national companies, private and public sectors. These laws supplement but in recent years, foreign distributors have more than 40 legal norms at the federal level that entered the market and joined with Brazilian directly and indirectly deal with the protection dealers/reseller channel partners to become more of privacy and personal data in a sector-based competitive. As the number of resellers, value- system. added resellers (VARs), and agents grows and their Labelling / Marketing Requirements portfolios expand, more distributors will adhere to local distribution models. The Brazilian Customer Protection Code requires that product labelling provide the consumer with Principal Business Associations within the ICT precise and easily readable information about Sector the product’s quality, quantity, composition, Ministry of Science, Technology, Innovation and price, guarantee, shelf life, origin, and risks to Communication (MCTIC) the consumer’s health and safety. Portuguese translation of this information is required for all Brazilian Association of Information and imported products. Labels should also include Communications Technology Companies - metric units or include the metric equivalent. Brasscom Import Requirements & Documentation Brazilian Association of Software Companies - ABES The entry of imported products to Brazil is subject to permission issued by the respective Brazilian Association of Telecommunications - Brazilian authorities that regulate the entry and TELEBRASIL commercialization of these goods. Goods that Brazilian Electrical and Electronics Industry need a license for importation (non-automatic Association - ABINEE licenses) require approval customs authorities, composed mainly of ministries or agencies. These Other useful links: licenses usually need to be requested from a Brazilian Telecommunications Agency - ANATEL branch of the Ministry of Development, Industry Inteligência em Telecomunicações Webportal - and Trade (MDIC) before the shipment, but in Teleco certain cases can be obtained after the shipment of goods, but prior to customs clearance. Products that transmit signals with the purpose of telecommunication require a certification from Anatel for importation into Brazil. For additional information visit Anatel’s website.

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THE STATE OF MINAS GERAIS

Brazil

MINAS GERAIS

Atlantic Ocean

inas Gerais is a large inland state of search of its rich supply of geological riches. These Msoutheastern Brazil. It is the country’s Portuguese settlers brought African slaves in order storehouse of mineral riches, as indicated by its to work in the mines and to start connecting the name, which in Portuguese can be translated as various ‘settlements’ (or towns) by building a “General Mines.” The state is bounded to the network of roads throughout the area. The 1700’s north by the states of Goiás and Bahia; to the east saw the ownership of the mining exploration by Bahia, Espírito Santo, and Rio de Janeiro; to the belonging mainly to the Portuguese government, south by Rio de Janeiro and São Paulo; and to the who imposed heavy taxes on everything that was west by São Paulo, Mato Grosso do Sul, and Goiás. extracted. The colonists tried to rebel several It is the second most populous state after São times, but the Crown was too powerful for them Paulo and the fourth largest state. Minas Gerais’s to succeed. During the course of the 19th century, capital and largest city is Belo Horizonte, (which some of the gold mines were exploited to capacity, translates as “Beautiful Horizon”); located in the while others still yielded ample riches. While south-central part of the state. The metropolitan the European influence was marked, the locals area of Belo Horizonte concentrates much of the also had a fair share in the mining of this region, industries of the State. helping them to establish viable communities and to develop a unique art form, known as Barroco Minas Gerais has an area of 586,528 sq km, which Mineiro, which was characterized by an opulent is slightly larger than the area of Kenya. It has use of gold in design and architecture. approximately 20 million inhabitants, including Indigenous people and decendant Africans, Because of the major economic contribution of Germans and Lebanese. It is home to some of Minas Gerais, it played an integral role in the the longest rivers and highest mountains in the commercial and economic history of Brazil. In the country, as well as to several hydroelectric power 1800’s, the Brazilian Empire was established. The plants. It also still boasts many impressive mineral following century saw this state share control of deposits which include gold, emerald, topaz and the national political scene along with São Paulo. aquamarine. During almost two centuries after the Portuguese History of Minas Gerais reached Brazil’s coast, the country was a producer first ofpaubrasilia and then of sugar cane. Originally inhabited by the indigenous tribes, the Paubrasilia was already available while sugar cane state was renowned for its being rich in gold, gems farming was stimulated by the Portuguese due to and diamonds. During the latter part of the 17th its high value in Europe. All the cane farms were century, many Portuguese occupied this land in

10 Quarterly Business Newsletter | Issue No. 20 | Third Quarter 2019 Embassy of Brazil in Nairobi established on the coastal zone, not only because sent geologists to oversee the mining. Only the the lands were more adequate, but also because gold near the surface was explored; because of the exploration of the interior lands were much the poor techniques employed, a large proportion more costly and risky. of the gold was lost forever. Portugal was more driven by taxation rather than with rationally The bandeirantes, stimulated by the Portuguese exploring the gold. By 1760, reports indicate that Crown, were the first ones to reach Minas Gerais. the production of gold was in rapid decline. Expeditions date back to 1674, but only around 1693 the first discoveries of gold took place. For a short period, the production of diamonds In the first years of the 1700s, Minas Gerais surpassed the production of gold. During that witnessed a gold rush. People from coastal areas period, the region around the city of Diamantina (particularly Bahia and Rio de Janeiro) flocked flourished. However, Portugal showed a similar to the mines; the central government in Lisbon ambition for gold taxation, and the diamond had to legislate to stop the Portuguese from production soon was over. immigrating. The next decade saw fierce combats After 1822, the combination of more political between different groups (the Bandeirantes freedom with the sharp fall in gold production -17th-century Portuguese settlers in Brazil and promoted radical changes in the life of Minas fortune hunters and Emboabas- new generation Gerais. Geologists and other scientists were of Portuguese settlers) who claimed rights to the sent. Even though they couldn´t restore the gold share of gold. The episode was known as War of reserves, their studies on the potential of the iron Emboabas (Guerra dos Emboabas), and in the launched the basis of what would become the end the Paulistas (inhabitants of the south-central modern metal industry. New economic activities Brazilian state of São Paulo) were defeated. From came up to replace the gold mining. The ample 1693 to 1720, the population grew very quickly; areas around the São Francisco River were in 1720, the Portuguese created the captaincy of occupied by cattle farms. During the peak of Minas Gerais, with capital in the city of Vila Rica the gold production, the animals were necessary (today, the city is called Ouro Preto). for transportation of goods and for feeding the Portugal heavily taxed the mines using other population, were supplied by the southern States parameters given that it was difficult to gauge (notably Paraná and Rio Grande do Sul), but now the output of gold. The administration taxed there was a progressive movement of replacement. the production by the number of employees, by This area, until today, is one of the largest clusters amount of tools, and, eventually, a fixed amount of livestock breeding in Brazil. Minas Gerais had of gold per mine, which, being determined the extra advantage of having created over the unilaterally by the Crown, had a higher value each decades channels of distribution with several year. Increased taxation caused rebellion to rise. parts of Brazil. By the middle of the 19th century, Coffee gave a boost to the economy and once The Portuguese had no preoccupation with the again Minas Gerais was one of the most dynamic productivity of the gold prospection as they hardly economies of Brazil.

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Economy and Infrastructure of Minas Gerais NOMINAL GDP BY SECTORS 2017 (US$ billions and percentages) Minas Gerais is among the most developed states in Brazil. The economy of the State has a strong influence Farming Industry Services of historic factors. The State generates about 10% of Brazilian GNP, and accounts for about 13% of 5.2 Brazil´s total exports. Minas has more livestock than 6% 109.8 38.5 any other State, and is the largest producer of dairy 70% 24% products. About half of the Brazilian coffee is grown in Minas. Industries are much diversified in the state. Trade and Services Trade and services is a large generator of employment and income, responsible for about 65% of the state Gross Domestic Product (GDP). The services sector in Minas Gerais has gradually increased its participation in the formation of wealth and jobs. Approximately 71.5% of formal employed people work in some Total Nominal GDP: public or private organization that belongs to the US$ 179.3 billion. tertiary sector of the economy. Source: IBGE/Fundação João Pinheiro (FJP)/ Departmento de Economia ACMinas An intense movement was observed in the market FORMAL EMPLOYMENT (2016) in 2018, as large retail chains of supermarkets and drugstores invested in the opening of stores in the FARMING interior of the State. There are plenty of shopping 259 thousand (5.59% of the State). malls which bring diverse products and services with INDUSTRY comfort and convenience to the public. A survey 1.06 million (22.87% of the State). of the Brazilian Association of Shopping Centers SERVICES (Abrasce) points out 571 malls in the state with a 3.31 million (71.54 of the State). concentration of more than 100 thousand stores. Source: IBGE/Fundação João Pinheiro (FJP)/ MET (Anuãrio RAIS) As this type of establishment continues to be bought after by tenants, many new centers continue to be inaugurated. insurance business. The Metropolitan area of Belo Other service segments strong in Minas Gerais Horizonte (BHMA) is also consolidated as a service include the car rental sector. Belo Horizonte is home center specialized in business consulting. to the largest car leasing companies in Latin America. The Trade segment had the most important role Minas Gerais also houses the largest national in the 1.3% growth of the Services Sector in 2017. and international insurers having affirmed itself The segment itself grew 2.5% in the same period, as becoming Brazil’s second largest market for performing 12% of Minas Gerais GDP.

Agribusiness The diversified production makes Minas Gerais one of the largest agricultural producers of the country, occupying the fifth general place in the national production. Companies established in the state as well as entities that serve the sector constantly invest in innovation, such as the use of drones to monitor crops, application of phytosanitary products and precision agriculture. The crops that stand out most are coffee, sugar cane, fruit farming and beans. Coffee Minas Gerais is the national leader in coffee production, with 56.4% of the country’s planted and processed crop. The total state’s production in 2018 was estimated at about 30 million bags of 60 kilos. If Minas Gerais were a country, its coffee production would be the second in the world after Brazil. In the list of products exported by the state, coffee ranks second, with a value of US $ 3.455 billion. Production increased in relation to the 2017 due to, among other factors, the entrance of refurbished coffee areas, with greater technological

12 Quarterly Business Newsletter | Issue No. 20 | Third Quarter 2019 Embassy of Brazil in Nairobi input, resulting in higher productivity. This market, Meat in addition to growth, has emerged because of its In 2016, the cattle herd in Minas Gerais was 23.6 greater added value and received support and various million (beef cattle and milk), or 10.83% of the incentives for its development. One of them is the Brazilian total. The export volume of meat reached International Coffee Week, the largest meeting of almost US $ 600 million, equivalent to 147 thousand the sector’s productive chain in Brazil, and one of the tons. In the last year, the state maintained growth in most important in the world. For more information the slaughter of cattle, pigs and in egg production. about the international coffee week, please click on The state is home to large-scale meatpacking units the link. such as JBS Friboi, BRF Foods and Minerva Foods. International Coffee Certification Milk The Instituto Mineiro de Agropecuária (Agriculture Most of the milk produced in Brazil comes from and Cattle Raising Institute) (IMA), in partnership with Minas Gerais. The State is responsible for production Epamig and Emater-MG, is responsible for certification of 9 billion liters, which is 26% of production of of coffee growers in Minas Gerais. These producers milk in Brazil. The herd is composed of 23.6 million have adhered to the State Seal of certification and heads (considering beef cattle and milk), which gives whoever wins this local seal is automatically certified the state the second place in the national ranking. by the UTZ Dutch (formerly called UTZ Certified). This Several processing units of dairy companies settled certification attests to the production of coffee within in the state attracted by great supply of raw material. the criteria of environmental, social and economic Among them Nestlé’s largest dairy plant, Danone’s sustainability, bringing value to coffee and enhancing large yoghurt and nutritional care plant, and Brazil’s the competitiveness in the international market. The largest milk cooperative, Itambé, in addition to producer with the UTZ Certified seal is more likely to Jussara, Porto Alegre, Embaré and Cemil brands. sell and profit overseas. In 2017, 1,600 coffee growers received the certification of sustainable producers. • International Award (Cheese from Minas Gerais) (World competition, Tours, France, Dried coffee beans 2017) • Golden Super medal won by Senzala; a potent cheese from – Fazenda Caxambu (Sacramento) • Silver Medal Canastra cheese from Capela Velha Canastra cheese from Guarita Valley cheese from Cooperativa do Serro “Alagoa Grande” cheese (D’Alagoa cheese) Santo Casamenteiro cheese from Cruzília Grains Soybeans accounted for 16% of Brazil’s total exports in the first half of 2018. China was the main importer of soya in that year. As the 6th largest national producer of grain, the contribution of Minas Gerais was 5,048 million tons. The main items of the grain offer are soya and corn, which lead the state to occupy the sixth and fifth positions, respectively, in the national ranking. In total, Minas produced 14.2 million tons of grain in the last year, 7.5 million of which were corn. The major multinational companies engaged in the processing and marketing of soybeans and other types of grain are Cargill, ADM, Louis Dreyfus Commodities.

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Fruits - Fruits of Jaíba Project yield is 86.3 thousand tons of lemon; almost 850 thousand tons of banana and 85.7 thousand tons of In the dry lands of Northern Minas Gerais, there is mango. In the national ranking, the production of one of the largest irrigated areas of South America Minas Gerais corresponds to 10.8% of lemon (3rd where lemon, mango and banana are produced in a place) and 11.79% banana (3rd place). Production project named as Jaíba Project. It has transformed of mango occupies the fourth place in the national the socioeconomic reality of the northern region of production. The expectation for the 2016/2026 Minas Gerais, where 25,000 hectares are now in full decade is a significant expansion of 57.55% in banana production. The irrigated area used by the project production and 14.7% in the lemon harvest. corresponds to 66,000 hectares. Jaíba’s annual fruit Agricultural Production Highlights Minas Gerais in the last two years (% of Brazil’s production) st Potato: 1.6 millin tons (27.17%) 1 Strawberry: 85.76 thousand tons (56%) 4th nd Guava: 16.6 thousand tons (4.0%) Avocado: 50.4 million fruits (27.9%) 2 Tangerine: 211.2 thousand tons (21.2%) Pineapple: 251.4 thousand tons (14.23%) 5th Papaya: 61.3 thousand tons (4.3%) rd Persimmon: 15.1 million tons (7.9%) 3 Orange: 899.6 thousand tons (4.82%) Lime: 86.35 tons (10.8%) Banana: 847.1 thousand tons (11.79%)

Food and Beverage year, or about 8% of all the collection of this industry tax in the state. The food and beverage industries account for 20% of Minas Gerais Gross Domestic Product (GDP). From Another productive pole of beverages is craft beer, the inputs to the typical dishes to the beverages that with increasing production and presence in various accompany them, there is an entire chain generated regions of the state, such as Belo Horizonte and its from agribusiness (meat, poultry, chicken, milk and Metropolitan Area and Zona da Mata. It is a product of dairy products, coffee, fruit), food and beverage high added value, which has become a phenomenon industry and trade. among thousands of connoisseurs. There are 850 industries registered in the Union of In 2018, with the technical support of the Federal Beer and General Beverage Industries of the State University of Minas Gerais (UFMG), the Federation of of Minas Gerais (Sindbebidas), of which 510 are Industries of the State of Minas Gerais (FIEMG), the producers of cachaça; 70 of beer; 125 of juices; Union of Dairy Industries of the State of Minas Gerais 70 soft drinks and 75 other types of drinks, such as (SILEMG) and Sindbebidas signed a contract for the energy drinks. The sector collects R$ 1.5 billion in Tax transfer of technology to enable the insertion of new on the Circulation of Goods and Services (ICMS) per products and innovative solutions in the beverage

14 Quarterly Business Newsletter | Issue No. 20 | Third Quarter 2019 Embassy of Brazil in Nairobi market. Among them is a high fermentation process pulp companies, 14 of paper and 345 of packaging to isolate yeast, exclusively from Minas Gerais, for and paper products. the production of artisanal beer. The technology Data from 2015 shows an approximate production also provides for the development of an antioxidant of more than 8 million m3 of wood for paper yogurt, based on sun mushroom and a chocolate and cellulose, equivalent to 10.71% of Brazilian supplement for athletes and people with intense production. As for exports, in 2016 US$ 506 million caloric expenditure. were accounted for, representing just over 2% of the It is worth to mention that the Federal University of state’s exports. (UFLA) in Minas Gerais has partnered with Two of the state’s largest companies maintain Brazilian Cooperation Agency (ABC) and three East accelerated production and constant investments. African Countries; Kenya Tanzania and Burundi in Cenibra, located in , in the Rio Doce technical cooperation in the production of cotton. Valley, for example, obtained a record production of This is referred to as the Cotton Victoria Project. 1.2 million tons of pulp and investment of US $ 50 This is a four years and is aimed at enhancing cotton million to modernize one of the lines of its industrial production in the East African countries. The project plant. The pulp and paper producer Klabin is studying is worth $9 million. the next investment cycle in the state. Among the noteworthy productive sectors of food in Mining and Metal Industry Minas Gerais is poultry with 28 chicken slaughterers and an egg processing industry, with units distributed The mining-steel segment is intrinsic in Minas Gerais in the Midwest, Triângulo, Zona da Mata, Campos economic history, substantially contributing to define das Vertentes and South of the State. According to the socioeconomic profile of the state. No wonder, it the Association of Poultry Farmers of Minas Gerais is even present in the name “Minas Gerais” (General (Avimig), the sector employs around 400,000 people Mines). The sector represents 8% in the composition directly and indirectly. of the economic activity of the state and directly employs almost 50 thousand workers, throughout the Another contribution comes from the dairy sector, extractive chain. whose main producing regions are the Triângulo Mineiro and Alto Paranaíba, followed by the In Minas Gerais, iron ore, bauxite, phosphate, southern region of the State. The State has more manganese, aluminum, potassium, zinc, gold and than one thousand establishments, among dairies other minerals are produced. The main concentration factories, processing plants and refrigeration stations, is in the metallic minerals, evidencing the state’s role employing 34 thousand people. in the national scenario in the extraction of iron ore (66%), zinc (100%), and gold (45%). In nonmetals, it Sugar and Ethanol Industry leads nationally in phosphates (57%) and limestone Minas Gerais is the second largest sugar producer and (27%), according to the Minas Gerais Mining Outlook, fourth largest producer of ethanol in Brazil. Minas a document from the Brazilian Mining Institute (Ibram) Gerais guarantees the harvest of 63.5 million tons and the National Iron and Basic Metals Extraction of sugar cane, from which 3.98 million tons of sugar Industry Union (Sinferbase). and 2.65 billion liters of ethanol are originated. Brazil Ornamental stones, gemstones and precious stones, has the largest fleet of flexible fuel vehicles. These as well as substances for the production of electronic are vehicles which use both petrol or/and ethernol components like lithium and niobium are found in as fuel. Since their inception in 2003, a total of Minas. Niobium, a corrosion-resistant element, rare 30.5 million flex fuel cars and light-duty trucks were on the planet, is abundant in the state. It is extracted, registered in the country, and over 6 million flexible- in Araxá, in the Triângulo Mineiro region, by CBMM, fuel motorcycles, both by March 2018. The main the most important producer in the world. producing regions of the state are distributed among the Triangle – the largest – Zona da Mata, Central and Large world steel industry groups – which consume North. predominantly metallic minerals – have units in Minas Gerais, where they invest heavily. Among them: Paper and Cellulose ArcelorMittal, Usiminas, Gerdau, and Vallourec. In In Minas Gerais, there is 24.5% of the area planted its global business, including operations in Brazil and with eucalyptus in Brazil. The state concentrates three Minas Gerais, Vale S.A. announced investments of US$ 12 billion between 2018 and 2020. Among the

Quarterly Business Newsletter | Issue No. 20 | Third Quarter 2019 15 Embassy of Brazil in Nairobi mining companies that contribute not only to GDP American – are the country’s only manufacturers of but also to the state value chain are Anglo American, locomotives for freight trains. Anglo Gold, Arcelor Mittal, BHP Billiton, CBL, CBMM, In the city of , in Zona da Mata Mineira, Jaguar Mining, Kinross, Vale and Yamana Gold. the Mercedes Benz factory in Brazil produces Actros In terms of exports, Minas Gerais accounts for about cabins and trucks. In 2018 the company inaugurated 15% of the Brazilian output, with iron ore in the first a new production process, the Industry 4.0, innovative place, representing 92% of the amount. In the list of technology that will be extended to all stages of mining products for export, iron ore predominates, production. The initiative is part of an investment of with almost 40%. In the country as a whole, Minas US$ 593M in progress by Mercedes in its operations accounts for almost 100% of exports of lead, zinc, in the country until 2022. niobium, precious metals, graphite, slate and Civil Construction magnetite. The civil construction sector in Minas Gerais is The State of Minas Gerais is today the 2nd most another main player in the economy of the state, important state in steel production among Brazilian as it is an important generator of jobs, besides states. Some of the main production units in Minas being in constant evolution and innovation. In its Gerais belong to the largest global groups in the productive chain there are large companies, which sector, such as Arcelor Mittal, Gerdau, Usiminas, offer turnkey solutions from raw materials and inputs Vallourec and VSB (Vallourec and Sumitomo). to the final product for the improvement of the state Transport and Automotive infrastructure. Minas Gerais is home to the 2nd largest automotive By contributing socially to the reduction of the hub in Brazil, with 15.4% of the national production Brazilian housing deficit, the movement of the in 2016. Minas Gerais has Fiat Chrysler Automobiles sector also boosts the chain of financial services, (FCA) as the key player in the sector in the state. The commerce, technology, transportation, consulting factory surroundings in , in the Metropolitan and training among several others. In this scenario, Area of Belo Horizonte (BHMA), are populated by some companies stand out inside and outside the hundreds of auto parts industries that serve the Italian state territory. Important civil construction brands automaker, installed in Brazil in the mid-1970s. FCA’s in Minas Gerais include Emccamp, which has been industrial unit is the largest manufacturing plant in receiving distinctions for its performance in important the world and has an annual production capacity national rankings. MRV- which has constructed more of 800,000 vehicles. In July 2018, on the occasion than 40 thousand apartments and occupies the place of the celebrations of the 42 years of the FCA unit of the largest residential construction company in in Betim, the automaker announced investments Latin America and one of the largest in the world in of around US$ 2 billion in the plant, to expand the volume of real estate built. Also drawing attention facilities and attract suppliers with technology not yet is PHV Engenharia, one of the civil construction available in the region. brands in Minas Gerais, known for its high-standard developments and that has maintained above- In addition to passenger cars produced by FCA, the average growth, is also worth mentioning. Precon automotive industry in Minas Gerais manufactures Engenharia is the first in the industry to obtain a engines and transmissions (FPT – Powertrain certification of competitiveness, the SiAC certification Technologies), iron and aluminum parts (Teksid PBQP-H-2017. Another initiative of the company do Brasil), trucks and utilities (Iveco and Mercedes is the Precon housing solution, or SHP, a technical Benz), armored defense vehicles (Iveco), agricultural innovation that brought to the civil construction field and construction machinery (CNH), automotive the concepts of the automotive assembly. components (Magneti Marelli) and industrial automation equipment (Comau). Several other Other important companies located in Minas companies with related activities, such as consulting, Gerais: Andrade Gutierrez Engenharia, Direcional finance and insurance, also reinforce the economic Engenharia, Grupo ARG, Construtora Barbosa Mello, range of the automotive sector. Minas Gerais has Empresa Construtora Brasil, Odebrecht Ambiental, gained national prominence by housing manufacturing AG Constructions and Services, Construtora Aterpa, plants of GE Transportation, EMD Equipamentos e Construtora Cowan, Torc Terraplenagem, Obras Serviços Ferroviários (a Caterpillar subsidiary) for the Rodoviárias, Construções Ltda. production of locomotives. The two companies – both

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Cement than 20 thousand enrolled students. Special mention should be made of the courses in Computer Science, In Minas Gerais lies the largest cement producing Electrical Engineering, Physics and specializations park in the country, with nine factories of the main in Systems Analysis, Software Engineering and brands active in the market. The national cement Telecommunications Networks at Federal University industry has installed capacity for 100 million tons of Minas Gerais (UFMG); the Computer Science and annually produces 57 million tons. course at Pontifical Catholic University (PUC), as well Information and Communication Technology as other institutions such as the Francisco Moreira The second largest concentration and third largest da Costa Technical School of Electronics (ETE), the GDP of companies in the country’s Information and National Institute of Telecommunications (Inatel) and Communication Technology (ICT) sector is in Minas the Center for Higher Education in Management, Gerais territory. The state has technological parks, Technology and Education (Fai). industrial districts and industrial technology condos, Electrical and Electronics Industry: Silicon Valley which produce hardware and software for the in Brazil is in Santa Rita do Sapucaí aerospace sector, embedded software and IoT for the Compared to Silicon Valley in California, Minas automotive sector, sensors and software for mining, Gerais is proud of its own Valley of Electronics, electronic components for household appliances located in Santa Rita do Sapucaí, a municipality and several others. There are more than 6 thousand with 43 thousand inhabitants, 387km from Belo companies that inject into businesses around US Horizonte. It is the first city in Latin America to have $618 million per year. a technical school of electronics and the first college Within the ICT ecosystem, Minas Gerais is home to of Telecommunications Engineering in Brazil. Santa the R&D centers of Google (the only one in South Rita houses 153 technology companies and more America), Embraer, Erikson and FIAT, as well as than 20 startups. Among the more than 15,000 items international companies such as Infosys, Axxiom, manufactured by a contingent of 14,700 directly hired Hexagon Mining, Algar technology and Cadence. professionals, we highlight digital TV transmitters; In terms of human capital training to attend to the electronic ballot boxes and technological games for diverse functions of the ICT branch, Minas Gerais children in the Asperger’s spectrum. Altogether, has 67 educational institutions specializing in ICT, revenues from local technology companies are around representing 11% of the Brazilian offer, with more US$ 791 million annually.

Textile and Clothing The state’s textile industry employs almost 130 thousand people and is among the three largest in Brazil, according to the latest data from the Brazilian Association of the Textile and Apparel Industry (Abit). The state, “avant-garde” of national fashion, has hosted the largest fashion business event in Latin America for 23 editions, Minas Trend Preview, promoted by the Federation of Industries of the State of Minas Gerais (FIEMG). In two annual editions, the meeting brings together the entire chain of the fashion industry, represented by exhibitors of clothing, footwear and accessories. It is also important to highlight the originality and quality of luxury fashion factories present in Minas Gerais. For more information about Minas trend preview, please click here

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Reasons to Invest in Minas Gerais Southeast Region, connecting the Center-West (by the frontiers with Goiás and Mato Grosso do Sul) and Solid economic foundations: Minas Gerais is the 2nd the Northeast (to Bahia) to the states of São Paulo, largest exporter and the 3rd largest contributor to the Espírito Santo and Rio de Janeiro. That allows easy overall GDP in Brazil. Minas Gerais has the second access to the main Brazilian ports, such as Santos largest consumer market in Brazil, with a 10.4% (SP), Rio de Janeiro (RJ), Paranaguá (PR), and those share, only behind the state of São Paulo. in the Espírito Santo Port Complex. Therefore, Minas Logistical advantage: Minas Gerais has a considerable Gerais stands as the main corridor connecting these logistic advantage: easy access to 49% of the Brazilian states, which are responsible for a high cargo land consumer market, with a consumption potential transport, especially due to the port of Santos. GDP estimated at USD$ 493 billion in 2016. The Highly qualified workforce: Minas Gerais has region also concentrates 50.3% of the 19.07 million skilled workforce, the result of good quality in public Brazilian companies. Minas Gerais has the most education and technical training centers. The state important airport located in its capital. It is one of the has important federal universities and hosts the top five airports in Brazil and registers a flow of over Dom Cabral Foundation, one of the top ten business 10 million passengers a year, with international flights schools in the world according to the Financial Times to Europe, United States, Central and South America. ranking. Minas Gerais also has the largest road network and the second largest rail network in Brazil. Great quality of life and low costs: with advanced infrastructure, access to quality education and the Strategic Location: Minas Gerais boasts a privileged presence of key industries, Minas Gerais offers great location in Brazil, being a focal point of the Brazilian quality of life and convenience.

Tourism in Minas Gerais Some of the main tourist attractions in Minas Gerais:

The Mineral Springs in Araxá Araxá, a municipality in southwest Minas Gerais has some of the most tranquil holiday-maker attractions in Brazil. You will see the loveliest craft pieces made in looms, and the delicacies of the local cuisine, like compote candy and cookies. Araxá’s weather and landscapes make it perfect for exciting activities such as hang- gliding. Several mineral rich springs provide a relaxation of the muscles and the nervous system besides improving the general blood circulation and treating the skin. Available also is the alkaline-sulphurous water, which is used in medicine for the treatment of: diabetes, obesity and gastric, rheumatologic, urological and hepatic troubles.

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Instituto de Arte Contemporânea Inhotim The world’s largest open-air contemporary art museum, and greater Belo Horizonte’s standout attraction, this sprawling, world-class complex of gardens dotted with 23 modern art galleries and numerous outdoor sculptures lies 50km west of the city. Much of the international artwork on view is monumental in size, with galleries custom-built to display it. The constantly expanding gardens has over 4000 different species of plants (including one of the world’s most extensive collections of palm trees) and lakes with swans. You can wander at will, or attend daily scheduled programs led by guides trained in visual arts and natural science. Ten on-site eateries serve everything from hot dogs to gourmet international fare. Wednesday’s a great day to visit, as the museum is free; weekends can get crowded, but offer a wider range of guided tours.

Coqueiral Waterfall in Monte Sião Among all the natural corners of Monte Sião, the Coqueiral Waterfall is one of the most beautiful spots to visit. It is located on the border of Monte Sião and Jacutinga, and is formed by two sequential waterfalls. The Coqueiral Waterfall is popular for the extremely warm and cozy atmosphere, bordering slender coconut palms and a riparian forest adorned with exotic flowers, and wonderful orchids curled in secular trees.

Parque Nacional de Caparaó This 250-sq-km national park contains southern Brazil’s highest mountains, including Pico do Cristal (2798m), Pico do Calçado (2766m) and the third- highest peak in the country, Pico da Bandeira (2892m). Popular with climbers and hikers from all over Brazil, it affords panoramic views of the Caparaó Valley that divides Minas Gerais and Espírito Santo. The wide-open, rocky highlands that predominate here are complemented by lush remnants of Mata Atlântica (Atlantic rainforest) at lower elevations. The park entrance is 2km steeply uphill from the nearest town, Alto do Caparaó. Between November and January is the rainy season. The best time for clear weather is between June and August, although these are the coldest months.

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Ouro Preto Of all the exquisite colonial towns scattered around Minas Gerais, Ouro Preto is the jewel in the crown. Significant historically as a center of gold mining and government, and as the stage for Brazil’s first independence movement, the city remains vital in modern times as a center for education and the arts, and is one of Brazil’s most visited tourist destinations. Built at the feet of the Serra do Espinhaço, Ouro Preto’s colonial center is larger and has steeper topography than any other historical town in Minas. The narrow, crooked streets of the upper and lower towns tangle together and in places are too rough and precipitous for vehicles. Navigating the vertiginous cobblestone slopes on foot can be challenging, but the views of 23 churches spread out across the hilly panorama are spectacular. The city is a showcase of outstanding mineral art and architecture, including some of Aleijadinho’s finest works.Aleijadinho was a sculptor and architect of Colonial Brazil, noted for his works in various churches of Brazil.

The Igreja de Sao Francisco de Assis Praça da Liberdade (Freedom Square) in Belo Horizonte This exquisite church is Brazil’s most Circuit Cultural Freedom Square is the ideal place to learn about important piece of colonial art, after the history of the capital of Minas Gerais, Belo Horizonte. It Aleijadinho’s masterpiece The Prophets was implemented through the Secretary of State for Culture in in . Its entire exterior was partnership with the private sector to offer to the public spaces carved by Aleijadinho himself, from of knowledge, art and culture. Currently the complex is set apart the soapstone medallion to the cannon as the largest cultural circuit of the country. The construction waterspouts to the Franciscan two- of the square was initiated at the time when the new state’s bar cross. The interior was painted by capital was founded (1895-1897). Situated at the highest point Aleijadinho’s long-term partner, Manuel of the initial area of the city (limited by Avenida do Contorno), da Costa Ataíde. the square was designed to house the headquarters of the state government. Altogether, the circuit consists of eight spaces and museums in operation near the square, being them: the Public Archives Mineiro, the State Public Library Luiz de Bessa, the Popular Art Centre Cemig, TIM UFMG Space of Knowledge, Memorial Minas Gerais Vale, the Museum of Mines and Metal, the Mining Museum and the Palace of Freedom. Embassy of Brazil in Nairobi

RECENT HIGHLIGHTS

Brazilian smartphone market grew in revenue in Q1 2019 Brazil’s mobile phone market has seen a revenue boost in the first quarter of 2019 as number of units sold increased, according to research from analyst house IDC. Full story here

Brazil to boost agricultural exports with series of global market visits Brazil’s Ministry of Agriculture and Food Supply (MAPA) is aiming to enhance its reputation in the international meat sector with a series of trips to major markets to strengthen trade relations. Full story here

ICC Brazil wins ICC National Committee Initiative of the Year Award International Chamber of Commerce (ICC) Brazil earns the ICC National Committee Initiative of the Year prize for an artificial intelligence (AI) tool designed to assist trade negotiations. Full story here

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IBM, Hyper ledger Blockchain ID System for Banks Launches in Brazil CIP, a facilitator of Brazilian banking and financial infrastructure, has officially launched its blockchain ID platform via a partnership with IBM using Hyperledger Fabric, Cointelegraph Brazil. Full story here

Sources Minas Gerais State Investment Promotion Agency - INDI Why Invest In Minas Gerais Brazil Investment and Business Guide Volume 1 Strategic and Practical Information IBP, Inc Insights about Digital Transformation and ICT Opportunities for Brazil” https://www2.deloitte.com/br/ en/pages/technology-media-and-telecommunications/articles/insights-sobre-o-setor-de-tic---deloitte- brasil.html# http://www.v-brazil.com/information/geography/minas-gerais/history.html http://www.portaldaindustria.com.br/cni/canais/brazil-4-business-en/states/en-mg/ https://www.pagbrasil.com https://brasscom.org.br/

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INVEST& EXPORT

Trade and Investment Guide

BRAZIL’S TRADE PORTAL: INVEST EXPORT BRAZIL The Invest & Export Brazil website is a unique initiative of the Federal Government of Brazil, which brings together, on a single platform, information from various Brazilian agencies dedicated to trade promotion and investment attraction. A publication by the Invest & Export Brazil is an efficient, coordinated Trade Promotion and Commercial Section, government website highlighting Brazil’s business Embassy of Brazil in Nairobi. and investment opportunities, promoting foreign United Nations Crescent, trade and attracting international investors No. 121, Gigiri. to the country’s dynamic domestic economy. P.O. Box 30754-00100 Nairobi, Kenya. This informative website is a joint effort of Tel: +254 (0) 20 712 5765/6 Brazil’s Ministries of External Relations (MRE), Development, Industry and Foreign Trade (MDIC), Fax: +254 (0) 20 7125767 Agriculture, Livestock and Food Supply (MAPA) Cellphone: +254 733 606460 and the Brazilian Trade and Investment Promotion Agency (APEX-Brasil). [email protected] The platform brings together information on investment and business opportunities, presenting, www.apexbrasil.com in a structured and thematic manner, Brazil’s www.nairobi.itamaraty.gov.br major industries and the institutions supporting them. The Trade and Investment Guide follows the international trend towards cooperating organizations sharing products and services in a single, standardized electronic environment. The innovative web interface enhances the user experience, optimizing access to information, BrazilEmbassyKE quickly answering key questions and offering services that simplify import, export and investment activities. BrazilianEmbassyKenya

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