São Paulo – The Brazilian Export and Investment Promotion Agency (Apex) and the São Paulo State Investment and Competitiveness Promotion Agency (Investe São Paulo) signed an agreement today (30th) for training in foreign investment attraction, using a methodology developed by the World Bank (IBRD).
“The methodology comprises several modules, covering training, services, investment promotion, generating interest in investing, and all of the post-investment aspects,” explains Ricardo Schaefer, Apex’s Management and Planning director.
The IBRD’s method is called Investment Climate Advisory Services (ICAS) and entails building a nationwide network, involving the federation states, to make them into investment attraction hubs. The intention is to train states and municipalities to deal with foreign investors. The Brazilian states of Pará, Pernambuco and Bahia are already receiving training to operate under the new system.
“Our aim is to actually build a network in the country, so that no matter where the investment comes from, we may find the best target for it, through cooperation,” explains Schaefer.
He reveals that eight investment projects targeting the state of São Paulo have been submitted to the Apex. “These will serve as practical examples in which we may test the methodology and start the training work with these prospective investors.”
According to Mario Mugnaini Júnior, the chairman of Investe São Paulo, there are five priority sectors for the state: aeronautics, due to the presence of aircraft manufacturing company Embraer in the municipality of São José dos Campos; the auto industry, given that the state accounts for 55% of auto production and 65% of auto parts production in the country; the oil industry, because of the demand that oil extraction in the pre-salt layer will generate; semiconductors, due to the ongoing search for investors in Southeast Asia; and research and development, through attraction of partnerships with foreign universities. The priority markets for seeking investment in the state have not been set yet.
Regarding Arab investment, Mugnaini highlights areas that are already receiving funds from countries in the region, such as the Santos port, the hotel industry and agribusiness. “These projects are at an early stage, so we are conducting in-depth research, receiving missions form Kuwait, Saudi Arabia, the United Arab Emirates etc. all the time,” he says.
The first action-setting meeting should take place on August 6th. The state’s city halls will also be trained to engage in foreign investment attraction. According to the chairman of Investe São Paulo, the objective is to provide training to 30 municipalities each year.
Investe São Paulo was established in 2008 by the government of the state. Ever since, it has managed to attract the establishment of Toyota’s second plant in the country, in the city of Sorocaba, with investment of US$ 600 million; the establishment of the Hyundai plant in Piracicaba, with investment of US$ 700 million; and the expansion of Cebrace’s glass plant, in Jacareí, which will produce 900,000 tonnes of glass per year. “It will be the world’s largest glass factory, competing against a Chinese plant,” says Mugnaini. The state is also negotiating the implementation of a plant by Sany, a Chinese civil construction equipment manufacturer, with investment of US$ 200 million.
*Translated by Gabriel Pomerancblum
