4 - Belo Horizonte City - Investment Attraction - July 2012

7/27/2019 4 - Belo Horizonte City - Investment Attraction - July 2012

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Prefeitura de Belo Horizonte | Secretaria Municipal de Desenvolvimento

Investment Attraction

Belo Horizonte,

April, 2012.


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Source: IBGE

Belo Horizonte is one of the three most prominent cities in Brazilwith both social and economic development accelerated, withmany opportunities within a favorable political context

Key Facts & Figures

Population 193 M

GDP: US$ 1,59 trillion

Population: 19 M(10% of BR)

GDP: US$ 150 Billion (9,5% ofBR)

Population: 4,5 M (20% of MG)

GDP: US$ 35 Billion (17% of MG)

Brazil Minas Gerais Belo Horizonte

BRAZIL

Ranked 6th economy in

the world, expected tobe 5th by 2016

3rd largest economy

among the 27 BrazilianStates 6

th

largest Brazilian cityin number of citizens


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Why Belo Horizonte?

Infrastructure

BusinessEnvironment

StrategicLocation

LaborForce

Quality ofLife

Security

EconomicContext

PublicManagement


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Infrastructure

Infrastructure

Ambiente deNegcios

LocalizaoEstratgica

Mo deObra

Qualidadede Vida

Segurana

ContextoEconmico

GestoPblica

Energy Sanitation Telecommunications Logistic


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Belo Horizonte has 2nd best infrastructure among thelargest cities in the country

The quality of life of a population can also be measured by the level of infrastructurethat the city has. According to data collected by Census 2010, released by the IBGE,the residents of Goinia and Belo Horizonte live in the best conditions in the country,among the fifteen largest cities in Brazil, with more than 1 million inhabitants.

Items analyzed: public lighting, paving, sidewalk, wheelchair ramps, greenareas, identification of streets, open sewage and accumulated garbage on the streets.

Belo Horizonte was the champion in two items, paving (98.2%) andsidewalk (94.0%), and had prominence in all the others.


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Infrastructure

Sources: Urban System 2011 para EXAMEwebsite CEMIG - Urban System 2011 para EXAME

A study by the Urban System pointed Belo Horizonte asone of the best capitals in infrastructure, especiallytelecommunications, sanitation and energy.

Energy

The energy of Belo Horizonte isprovided by CEMIG, elected thebest energy provider in thecountry according to the

newspaper Valor Econmico, andconsidered the largest integratedelectricity sector in the country.

Sanitation

The COPASA, water andsanitation company that servesBelo Horizonte, in 2009, was alsoelected the best company of the

year by the newspaper ValorEconmico and elected for twoconsecutive years the bestcompany in Water and Sanitationin Brazil.

Telecommunications

Belo Horizonte won first place in

the Brazil Index 2011 of DigitalCities, calculated by the WirelessMundi magazine with the support ofthe Moment Editorial and CPqDFoundation. This recognition is dueto efforts to computerize publicadministration and to ensure free

access to the internet to thepopulation in 325 telecenters andfrom 44 hotspots that replicate thesign of the public Wi-Fi, with anetwork coverage covering 95% ofthe city.


7/32Prefeitura de Belo Horizonte | Secretaria Municipal de Desenvolvimento

InfrastructureAirports

Airports

Belo Horizonte has a total of three commercial airports withemphasis to the Tancredo Neves International Airport (Confins)and Carlos Drummond de Andrade Airport (Pampulha)

The airport of Confins is the airport among the capitals with thefastest growing rate in recent years.

Growth of90,33% in number of flights from 2005 to 2009.

Growth of 96,01% in number of passengers from 2005 to2009.

2nd airport with greater growth in volume of cargo

transported from 2005 to 2009.

There are about R$ 400 MM (four hundred million reais)planned to be invested in Confins Passenger Terminalexpansion, until 2014.

Besides that, Confins is receiving Brazils first Airport Industry,what will work as a tax customss zone.



Business Environment

Infraestrutura

BusinessEnvironment

LocalizaoEstratgica

Mo deObra

Qualidadede Vida

Segurana

ContextoEconmico

GestoPblica




Minas Gerais is ranked by the IFC as the best state in Brazil to open a business, with anestimated time of 19 days. This value is eight times smaller than the state ofSo Paulo (152 days) and about four times smaller than Rio de Janeiro (68 days).

Average time to open a business in thebrazilian states (number of days)

Rank of the easiest places to open abusiness in Brazil



The city of Belo Horizonte has also several initiatives that aim to improve economicdevelopment and how we do business:

PROEMP - A program to encourage the installation and expansion of companies, with a reductionof tax rates and deferral of city tax and property tax. New companies starting their business in BH,and that develop products or services with a technological base and high added value may havetax incentives up to 100% of ISSQN, and tax deductions of IPTU, according to the conditionsestablished in the municipal law.

CODECOM - Economical Development Council of Belo Horizonte - Initiative developed inpartnership with various institutions to attract investments to Belo Horizonte seeking to acceleratethe development of the city.

GEAL - Executive Group to accompany Licensing and Implementation of Projects: Agroup formed by various departments and sectors of the Municipality in order to accelerate theacquisition of licenses for strategic business for the city.

In addition to that, the state of Minas Gerais has its Investment Attraction Agency, calledINDI, which stands for Institute for Integrated Development of Minas Gerais, that alsocontributes on the analysis of the citys possibilities and brings support for future investors.




This scenario favors the attractiveness of the city and itsmetropolitan area, where important Brazilian and InternationalCompanies are strategically located



Economic Context

Infraestrutura

Ambiente deNegcios

LocalizaoEstratgica

Mo deObra

Qualidadede Vida

Segurana

EconomicContext

GestoPblica



Belo Horizonte is the fastest growing metropolis in the country

Fonte: http://economia.terra.com.br/noticias/noticia.aspx?idNoticia=201201241154_TRR_80763224

A study with the 200 biggest metropolitan regions in the world, appointed that BeloHorizonte is the fastest growing region in Brazil, followed by Brasilia, So Paulo, Rio deJaneiro, and Porto Alegre.

Belo Horizonte passed So Paulo, going from 39th place to 28th, while So Paulo lostone position compared to the earlier study, going to 37th. Porto Alegre went from 60th to50th.

The study considered population facts, as wellGDP, employment rate, and income.



Economic Context

Fonte 1: IBGE 2008 considerando inflao

Fonte 2: Portal da Copa 2014

Belo Horizonte is responsible for 17% of GDP of thestate of Minas Gerais and for 39% of GDP of itsMetropolitan Region. 83% of the citys GDP comesfrom trade and services, specially construction,healthcare, biotechnology, IT, and software industry.

The Metropolitan Region of Belo Horizonte has thethird largest industrial center of the country and thefifth largest industrial park in South America -specially automotive, mining and metals, electronics,

information technology and construction.



Economic Context

Fonte: IBGE 2008

82,3

2007

16,39%

20082004

45,8

66,3

2006

59,0

2005

51,6

2003

37,1

2002

31,5

2001

28,7

2000

25,3

1999

21,0

GDP growth of Belo Horizonte - 2003-2008

R$ Bilhes

GDP and Economy .

The GDP of Belo Horizonte and itsmetropolitan region presentedthe highest growth rate between

1999 and 2008 compared to themajor capital cities, with an annualgrowth average of 12.35% and16.39% respectively.

Belo Horizontes average GDP

growth rate, between 1999 and2008, is 23% higher than SoPaulos and 39% than Rio deJaneiros.



Strategic Location

Infraestrutura

Ambiente deNegcios

StrategicLocation

Mo deObra

Qualidadede Vida

Segurana

ContextoEconmico

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Strategic Location

Belo Horizonte is located in the Southeast region of

Brazil, which is responsible for 56% of national GDP,

and concentrates the area with greater industrial

development, with the biggest offer of skilled

labor, and the largest consumer market of the country.

Belo Horizonte is only about one hour flight to other

major cities in the country, like Rio de Janeiro, So

Paulo and Brasilia.

Belo Horizonte has also an extensive road

network connecting the capital to other cities, regions

and ports.

Fonte: Ministrio do Desenvolvimento, Indstria e Comrcio Exterior

Bahia

MinasGerais

Esprito

Santo

Rio dejaneiro

So

Paulo

Mato Grosso

do Sul

Paran

SantaCatarina

Rio Grande

Do Sul

Gois

DF


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Strategic Location

In a 800km range around the areawhere Belo Horizonte, Rio de Janeiro andSo Paulo are located, there is:

50% of the population of Brazil

65% of national GDP

65% of retail purchases in Brazil

65% of industrial production

73% of the energy consumption


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Labor Force

Infraestrutura

Ambiente deNegcios

LocalizaoEstratgica

LaborForce

Qualidadede Vida

Segurana

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Labor Force

Belo Horizontes Metropolitan area presents a rate of 59,8% of economic active population, thehighest value among the main capitals and their metropolitan regions.1

Belo Horizonte has leading universities, like the Universidade Federal de Minas Gerais (UFMG), for

instance, and the Pontifcia Universidade Catlica (PUC). UFMG graduates 600 PhDs and 1.200

MSc every year

Regarding Business Education, Belo Horizonte has three excellence centers with both national andinternational distinction: Fundao Dom Cabral - FDC, Fundao Getlio Vargas FGV, and IBMEC.

FDC was ranked by the Financial Times as the 5th best business school in the world, in2011, and as the 3rd in customized programs for companies.

Source 1: PME/IBGE 2010

Ranking Cities Rate of Economic Active Population (%)

1 Belo Horizonte 59,8

2 So Paulo 59,6

3 Salvador 57,74 Porto Alegre 56,8

5 Rio de Janeiro 53,9

6 Recife 50,2


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Labor Force

Fonte: Banco de Desenvolvimento de Minas Gerais (BDMG)

Number of students enrolled in Engineer andrelated courses per year

2008

54.648

34.677

2007

38.886

2006

37.448

22.275 23.173

2005

34.545

2004

31.022

17.746 17.560

+15%

BH Metropolitan RegionMinas Gerais

Number of Post Graduates enrolled in Engineerand related courses per year

3.533

3.1772.9872.951

2.869

2.591

200920082007200620052004

+6%

Minas Gerais

Labor Force Training


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Labor Force

Fonte 1: Censo Escolar INEP/MEC

+6%

2010

130(14,0%)

2009

861

107(12,5%)

2008

795

105(13,2%)

2007

694

82(11,9%)

2006

745

86(11,6%)

925

Brasil Minas Gerais

Number of students enrolled in a Professional Education program(1)

(thousands)

MGs CAGR of 11%

Labor Force Training

The Metropolitan Regionof Belo Horizonte has

20.000 openings a yearin technical courses


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Public Management

Infraestrutura

Ambiente deNegcios

LocalizaoEstratgica

Mo deObra

Qualidadede Vida

Segurana

ContextoEconmico

PublicManagement


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Committed to effectively implement long term strategicgoals and to maintain a positive political environment

Belo Horizonte has a political environment

that contributes to the city development

Political Stability

Alignment and cooperation betweenmunicipal, state and federal governments

Continuity in public policies and programs Strategic Planning for 20 years based on 3

pillars:

Opportunities Jobs, Business, Services

Public private partnerships

Sustainability

Environmental sustainability Social participation in government

Quality of life

Public services, leisure and culture

Urban mobility

Inclusion and social justice

In order to deliver the Long-term Strategic

Planning, a short-term program with12

strategic areas and 40 projects is being

implemented.


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Belo Horizonte is ranked as Aa1 innational ranking by Moody's.

Moody's rates bonds "Aa" as being of highquality, with "very low credit risk"

Public Management

Finances Belo Horizonte

Fonte: Relatrio Moodys, PBH/SMF

Belo Horizonte is getting ready to receive a loan

from the Metropolitan Urban Development

Policy of the World Bank, which has a

counterpart in the excellence of public policies and

the financial health of the municipality. This loan

will be used to settle the debt with the Federal

Government allowing the municipality to

reduce its financial expenses by approximately

150 million dollars over the next four years, making

it possible for the city to spend more

money on other priority areas.


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Quality of Life

Infraestrutura

Ambiente deNegcios

LocalizaoEstratgica

Mo deObra

Quality ofLife

Security

ContextoEconmico

GestoPblica

Health Education

Culture Environment Mobility

Security


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The Citys social development has led its HDI to be at thesame level as Japan, which is the eleventh in the UN worldrank

Belo Horizonte has thehighest Basic EducationDevelopment Index (IDEB) ofthe Southeast Region StateCapitals, which includes SoPaulo and Rio de Janeiro

8 of the 50 top middleschools of Brazil are locatedin Belo Horizonte.

Belo Horizonte is theBrazilian State Capital withthe highest Healthinvestmentper capita.

It has also the mostdeveloped Primary HealthProgram of the country,reaching over 77% of thepopulation.

Belo Horizonte has thelowest rate of stolen cars(which is the most reliablesecurity statistics in Brazil)among all capitals of the 27Brazilian states

And its homicide rate hasbeen decreasing an averageof 10% every year, since 2003

SecurityHealthEducation


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Sustaining that social and economic progress, Belo Horizonteholds well-known Knowledge Centers and an Innovation Cluster

Top tier public and private educational institutions of Brazil:

Fundao Dom Cabral

The fifth best Business School of the World according to theFinancial Times.

Federal University of Minas Gerais (UFMG)

One of the top five Brazilian universities.

Graduates 600 PhDs and 1.200 MSc every year.

More than 700 research groups with several patents andpapers published every year.

BHTEC: New technological park integrated with UFMG is readyto accept many global R&D Centers.

Inove em Minas: State Incentive Program to attract R&DCenters to Minas Gerais consolidating the innovation cluster.

FAPEMIG: State agency that finances R&D programs BH.


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Quality of LifeEnvironment

The Municipal Parks Foundation manages and maintains 69 parks, totaling an areaofapproximately8.6 million square meters.

Becoming a sustainable city is one of the pillars of the Strategic Planning Belo Horizonte2030 which includes a series of projects and initiatives for sustainable development:

SWITCH - Sustainable Management of Water - Improve the Health of "Cities ofTomorrow

DRENURBS - flood control program

Project PoliCS - Policies for Sustainable Construction

Municipal Committee - Climate Change and Eco-Efficiency

Municipal Inventory of Emissions of Greenhouse Gases.

According to the Latin American Green City Index (The Economist IntelligenceUnit), Belo Horizonte was rated as above the average in the categories of water and airquality, and construction of sustainable buildings (Green Buildings).

Nota: ICLEI: Conselho Internacional dos Governos Locais pela Sustentabilidade

Fonte: Prefeitura de Belo Horizonte


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Quality of LifeMobility and Urban Planning.

Belo Horizonte has a relative small territorial extension (330.95 km ), where "everything isvery close," and the main residential areas are near the central area of the city.

Nonetheless, in order to improve public transportation and the environment, Belo Horizontehas relevant initiatives:

Cycling: The Program BH Pedal intends to build 365 km of bike paths through thewhole city.Bus Rapid Transit (BRT): The municipality intends to invest R$ 1.6 billion in amobility plan for the 2014 World Cup, which includes the construction of 38 km of BRT.Subway: R$ 3.2 billion will be invested in the expansion of the citys subway.

Belo Horizonte is a national reference in Urban Planning, with a recently updated MasterPlan (2009) to ensure orderly occupation of the city, the expansion of public spaces and themultiplication of urban centralities.

Fonte: BHTrans


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Furthermore, our people is proud and happy to live in a city with arich cultural, gastronomical and entertainment scenario

95% of its citizens are proud to live in Belo Horizonte

Internationally recognized for its fashion designers,

musicians, singers and theaters groups (e.g.: MiltonNascimento, Ronaldo Fraga, Grupo Corpo)

A swarming nightlife with a bar for every 200 habitants,

the highest rate of bars per capita in Brazil

About 22 theaters, movie theaters and concert halls in,

with some important music festivals, such as FIT(International Theather Festival) and the Savassi JazzFestival

Close to the largest Open Contemporary Art Museum in

the World: Inhotim


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Investment Attraction

Belo Horizonte,

April, 2012.

Documents

4 - Belo Horizonte City - Investment Attraction - July 2012