São Paulo – The Middle East and North Africa have become a target of exports from the state of Minas Gerais. The state has developed “Projeto Coaching,” whose main purpose is to diversify the export basket, and now it is at a final stage of international tendering to select a consulting firm to aid 15 local enterprises in selling to the Arab world. At present, nations in the region account for only 4.2% of exports from Minas.
The project came up as part of the technical cooperation programme that the state of Minas Gerais maintains with the World Bank. The food and civil construction sectors were chosen as targets of the trade promotion actions to be held in the Arab countries. The choice of sectors and of the target market was made jointly by the Federation of Industries of the State of Minas Gerais (FIEMG), the Agriculture and Livestock Federation of the State of Minas Gerais, the Brazilian Micro and Small Business Support Service (Sebrae), and the State Secretariat for Economic Development.
“The Arab world may be one of the most promising markets for the food industry,” says Jorge Duarte de Oliveira, the director of Central Exporta Minas, an organisation of the government of Minas Gerais that works to promote the state overseas. Further on, a third sector will become part of the list of areas for trade promotion in Middle Eastern and North African countries. This new area will be chosen with input from the consulting firm that wins the tender. Currently, most of the exports from Minas Gerais consist of ores and metallurgy products.
Oliveira explains that once the consulting firm is selected, opportunities 15 medium-sized companies based in the state, active in the three sectors specified and that are willing to export to the Arab countries, will be able to bid. “A strategic plan will be set for these companies to internationalize themselves, aiming at the Arab market. The consulting firm will follow them up for eight months,” says the director of Central Exporta Minas.
During this period, says Oliveira, the enterprises will participate in a trade mission that will travel to the United Arab Emirates, Saudi Arabia and Egypt. The mission should take place simultaneously with either the Big 5 civil construction fair, or the Gulfood fair, for foodstuff, both of which are held in Dubai.
An important point emphasized by Oliveira is that the interest extends beyond simply selling goods to Arab importers. The project has broader goals, he claims, such as attracting Arab investment into companies in the state, signing long-term sales contracts and even establishing joint ventures between companies based in Minas Gerais and in the Arab world. “We are seeking a more elaborate type of trade relations, always based in mutual gains,” he pointed out.
According to Oliveira, the tender process to select the consulting firm received bids from companies in 15 countries. One of the requirements was that the enterprises had offices in the Arab world. The winner should be announced in the first half of the current month. Companies interested in participating in the project may already contact Central Exporta Minas by e-mail at estrategia@exportaminas.mg.gov.br.
Current scenario
Presently, the export basket from Minas Gerais to the Middle East and North Africa concentrates on sugar and ethanol, mining and metallurgy, foodstuffs, jewellery, metals and precious stones. Exports from Minas Gerais to the region grew by 449.1% from 2003 to 2010, and reached US$ 1.31 billion last year.
*Translated by Gabriel Pomerancblum
