SÃO PAULO CONNECTING BRAZIL TO THE WORLD
São Paulo - 22nd largest economy in the world 45 million people, the largest state in Brazil Over 200 thousand km² of extension, larger than the UK
LATAM office of 60% of Fortune 100 companies
São Paulo is the second most desired destination in the world to travel in 2020 World’s number one producer of sugar, sugarcane ethanol and orange juice 4th largest consumer market in Latin America and largest in Brazil, only behind Mexico, Colombia and Brazil
Source: IBGE; Fortune UN, SEADE; State Government
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Healthy and growing economy Second strongest economy in South America (larger than Argentina) USD 613 billion GDP1
If Sao Paulo were a country, its 2019 GDP growth of 2.6% would be equivalent to the second largest GDP growth in Latin America, in front of Brazil and Colombia. In 2019, over 222 thousand businesses started in the State of SP - best result in company creation over the past 20 years.
1
Value for 2018 Source: IBGE; SEADE; UN; State Government
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Diverse and qualified workforce State that created the most jobs in Brazil in 2019, 291,000 formal jobs
Largest Japanese, Italian and Lebanese migrant communities in the world Received 110 thousand expats, half of Brazil’s sum, over the past four years
Home to 4 of the 10 best universities in LATAM
Accounts for 30% of Brazil´s PhD students
54% of the population with 11 years or more of study (Brazilian average is 45%) Source: Capes; PWC; Times Higher Education
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Highest historical level of investment Largest sum of announced investments over the past 20 years, USD 25 billion in 2019.
InvestSP is responsible for more than 30% of the announced investments.
Announced investments – State of SP Accumulated over past four quarters (USD Billions1) 26
19
16
19
17 10
12
13
13
3ºT17
4ºT17
12
11
1ºT18
2ºT18
14
14
7
1ºT16
2ºT16
3ºT16
4ºT16
2016 1
1ºT17
2ºT17
2017
3ºT18
2018
4ºT18
1ºT19
2ºT19
2019
FX fixed rate 2019 Source: SEADE; InvestSP
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9 Strategic objectives of the Government 1. Quality education, inclusive and transformative, seeking full development; 2. Integrated public health, with modern technologies and wide access; 3. Security for society using intelligence tools to combat crime; 4. Economic development promoting investment, innovation, tourism and the creative economy; 5. Social development guaranteeing individual and collective rights and promoting full autonomy; 6. Urban life quality, with adequate housing and mobility; 7. Competitive agriculture, strengthening production and sustainable consumption; 8. Sustainable development preserving the environment and protecting the population against natural disasters; 9. Modern and efficient Public Management, committed to the quality of public services, fiscal responsability and accountability. 6
Most relevant economic areas 32% of total Brazilian industry production
38% of total Brazilian services (value added)
40% of total refined oil in the country
33% of total foreign tourists in Brazil
47% Brazilian creative economy GDP
Source: PNAD; IBGE; RFA; State Government
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12 Hubs identified to promote economic 12 Development Hub concentrate 78% of the State’s industrial transformation value
Industry 1. Health and Pharmaceuticals 2. Metal-Metallurgical, Machinery and Equipment 3. Automotive 4. Chemical, Rubber and Plastic 5. Oil Products and Petrochemical 6. Biofuel 7. Food and Beverage 8. Textiles, Clothing and Accessories 9. Leather and Footwear 10. Paper, Pulp and Reforestation
Source: SEADE
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development to the State
Technology 11. Tech (Agritech, Aerospace and IT Services)
Eco-industry 12. Eco-Forestry (Vale do Ribeira)
32% of Brazilian industry leveraged by our Development Hubs USD 8 billion announced investments in 2019 in our Development Hubs. Source: SEADE; MTE-RAIS; InvestSP
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State of São Paulo exports % by value of exports (2019) Machines
16%
Transportation
16%
Foodstuffs
13%
Mineral Products
8%
Chemical Products
5%
Vegetable Products
5%
Animal Products
4%
Metals
4%
Plastics and Rubbers
3%
Paper Goods
2%
Precious Metals
1%
Textiles
4%
Others
Source: Siscomex
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Total Exports: USD 48.4 billion
18%
Strong agribusiness In 2019, SĂŁo Paulo exported over USD 12 billion in agribusiness. 2020 Agro Expo International Fair: over 6 thousand expected visitors; 500 meetings, over 700 million in business opportunities.
Growing creative economy One of SP’s top 10 economic sectors, with more than 350.000 direct jobs.
5.2%/year average expected growth for the next 4 years Netflix will invest US$ 75 million on local content in 2020 The largest ComicCon in the world, with 400.000 attendees The third market in the world for theatre and musicals Source: State Government
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World class infrastructure
75 million people fly through our airports every year. This value is comparable to the population of France and the United Kingdom
The largest port in Latin America is located in Santos, with 130 million tons of cargo annually, representing Âź of the total Brazilian trade flow
17 of the 20 best Brazilian highways are in the State of SĂŁo Paulo
Source: State Government; press clipping; InvestSP
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New investment opportunities
21
10 USD billion
40
40 USD billion
Projects in pipeline
Signed projects
in Planned Investments
in public and private investments throughout the concession or partnership
In 2020 SĂŁo Paulo received USD 279 million with the largest highway bidding in Brazil, from the Singapore Sovereign Fund. The 30-year concession equates to an investment sum of USD 4 billion in the State.
Source: State Government
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São Paulo is a tech State São Paulo is LATAM’s largest data and technology hub. São Paulo was the third economy that generated the most unicorns in the world. 10 of the 11 Brazilian unicorns are from SP. We will inaugurate LATAM’s largest government innovation hub in 2020.
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CITI project
More than 1,000,000 m² for the Brazilian Silicon Valley. In 2019, we launched IPT Open Experience as the landmark of the CITI project, focused on applied hard sciences development.
Confirmed companies
Singularity University will have a campus in the CITI project
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The Center for the Fourth Industrial Revolution Network’s missions is to codesign governance protocols and policy frameworks to maximize the benefits and minimize the risks of advanced science and technology. One of the 8 centers in the world, the center of Brazil will focus on: • Internet of Things • Artificial Intelligence • Data Policy Officially launched in Davos, members will be able to: • Co-design public policies of the 4th Industrial Revolution • Access global experts Confirmed members in Brazil
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Potential investments Intercity Train • 200 km • Investment – USD 2 billion
Metropolitan Train • 77.6 km; 1.1 million passengers/day • Investment – USD 1 billion
Coastline road • 230 km • Investment – USD 1 billion
Airport Concessions • 22 Airports • Investment – USD 113 million
Prisons • 7 facilities; 14 thousand vacancies • Investment – USD 190 million 17
Forefront of innovation in Brazil USD 7 billion invested in R&D over 2018 in SĂŁo Paulo FAPESP alone disbursed USD 300 million in 2019
Agricultural Sciences
Biological Sciences
Earth and Exact Sciences
Social Applied Sciences
Health Sciences
Engineering Sciences Source: InvestSP; State Government; FAPESP
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Research in the state is business oriented. SP has more researchers in the private sector than in universities.
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Tech parks and innovation ecosystems
VOTUPORANGA
BA SÃO JOSÉ DO RIO PRETO ARAÇATUBA
A PRESIDENTE PRUDENTE MARÍLIA
BAURU
OURINHOS
Many private sector initiatives to support startups are located throughout the state:
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BO
ITAPEVA
13 Tech Parks 13 Startup Incubators FRANCA
8 Innovation Centers
ARRETOS
RIBEIRÃO PRETO
SÃO JOÃO DA BOA VISTA
ARARAQUARA
SÃO CARLOS
PIRACICABA
GUARATINGUETÁ
CAMPINAS JUNDIAÍ
OTUCATU
GUARULHOS
SOROCABA
SÃO PAULO OSASCO
STO. ANDRÉ S. BERNARDO DO CAMPO
SÃO JOSÉ DOS CAMPOS
MOGI DAS CRUZES
SANTOS
REGISTRO
Source: State Government
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Social impact
More than 2 million families benefited by state and federal income transfer programs
“Bom Prato� program served 25 million meals in 2019 at USD 0.3 (BRL 1) to the vulnerable population
More than 72 million L of milk distributed annually, reaching over 326 thousand beneficiaries
In 2019, the State of SĂŁo Paulo increased by 87% the number of attended elders (+60) by State programs
Source: State Government
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Vocational Education
Largest vocational education program in Brazil, with more than 294,000 students. Of the 50 best state schools in Brazil, 32 are vocational schools in the State of SĂŁo Paulo. Expected to triple vocational education training by 2022, with 20,000 new vacancies offered in 2019 and over 100,000 in 2020. 78% of students from state public vocational programs are from public schools
30% of students from state vocational programs are Afro-Brazilian Source: Paula Souza Center
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Social impact
Health
The largest hospital network in the country, with over 100 State-run hospitals In 2020, The Butantan Institute will be responsible for more than 60% of the vaccines produced in Brazil. In 2025, it expects to produce 600 million vaccine doses Emilio Ribas Institute is internationally recognized for its infectious diseases treatment
Source: State Government; Butantan Institute; Emilio Ribas Institute
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Future Valley: largest social project for the lowest HDI region
State´s largest sustainable economic development Program. The region, considered a world natural and cultural heritage, encompasses the largest continuous of Mata Atlântica in Brazil, covering over 100 km of coastlines. 4 pillars: 1. 2. 3. 4.
Jobs and income Quality of life Sustainable management Infrastructure
Expected impact: • • • •
30 thousand new economic opportunities USD 1.4 million in foreign resources USD 792 million in public concessions USD 480 million in investments
In three months of operation: • Investment of USD 12 million • Over 2.000 positions for professional and vocational training 25
Urban security Lowest historical level of homicide rates, lower than Uruguay, Chicago and New York. Improvement in the main security indicators in 2019, such as robbery.
The largest police force in LATAM 1.7 million responses by the Military Police in 2019 Presence in 645 municipalities of the state
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The State is looking for more investment partnerships
São Paulo will host WEF LATAM 2020
Bracell Invested USD 1.8 billion in São Paulo after the 2019 WEF Annual meeting. With the investment it will become the world’s largest dissolving pulp producer of the world
Meetings with over 200 companies held throughout 2019 for potential investments
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Now’s the best moment to invest in SP São Paulo is already recognized as one of the best place for investment in Latin America by vehicles of international credibility:
Reasons for this credibility rely on: • Cost-benefit • Transparency • Business environment Our management is committed to provide maximum support and agility to international investors willing to invest in the state development: Liaison between organs of all governmental instances to ensure simplicity in the process Initiatives to increase the security of investors Strong support of state agencies dedicated to investments in the state Source: InvestSP
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New mission and offices for investment promotion InvestSP was named the best investment promotion agency in the world in 2018 7 international missions in 2019: • Beijing, Shanghai and Xian - China • Davos - Switzerland • Hannover and Berlin - Germany • London - United Kingdom • New York - USA • San Francisco and Los Angeles - USA • Tokyo, Nagoya - Japan 10 new missions scheduled for 2020 • InvestSP China office opened and ready for business • InvestSP Dubai office opens on February 2020
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Services for investors
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Site Location (Greenfield, Brownfield, Warehouses, Expansions)
Tax, Environmental and Infrastructure Advisory
Investment Facilitation
Tailor-Made Projects
No Cost for Investors
Non-Disclosure Agreement
Credit options
DESENVOLVE SP’s loan portfolio reached almost USD 103 million in 2018. In 2019, loan portfolio expansion expected to be 105%, totalling USD 213 million. DESENVOLVE SP supports projects aligned with UN’s Sustainable Development Goals. USD 350 million in negotiation with international organizations and the New Development Bank.
Credit Lines • Sustainable Projects • Innovation • Human Capital • Machinery and Equipment • Investment • Working Capital • Public Sector
Source: DesenvolveSP
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SĂŁo Paulo State Government We are ready for business
/ governosp
www.sp.gov.br
global.sp.gov.br