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Investment potential aplenty in Belo Horizonte - Economic hub of Brazil

 

May 25, 2010.

 

Belo Horizonte is the capital city of the Minas Gerais state located in the southeastern region of Brazil and the third largest metropolitan area the country. According to IBGE, 2008, about 5,054,000 people resided in the metropolitan area of the city with a population density of 7,290.8 inhabitants per km².Belo Horizonte is the sixth most populous city in Brazil and its metropolitan area is the third most populous in Brazil. The population is evenly spread amongst different races with Amerindians being the least and whites the majority, amongst others.  

 

As Brazil’s main economic hub, the city receives many visitors thus wields influence on other states. Multinationals and local Brazilian companies have headquarters in the city. Google and Oi have headquarters in Belo Horizonte, a city whose service sector plays a key role in its economy with about 85% contribution to its GDP and the other Industries making up about 15% of GDP contributions. The city’s GDP as at 2006 stood at R$ 32,725,361,000 while the GDP of its metropolitan area was R$ 62,329,388,000 and the per capita income for the city was R$15,830 in 2007.

 

The city has a well developed industrial sector and has distinguished itself as Brazil’s siderurgical and metallurgical hub due to its rich mineral resources particularly iron ore.  Canadian Queensland Engineering Company, Austin Engineering signed an investment deal in April, a joint venture business partnership in which the company committed US$15 million over the next two years in the city. The deal was a venture with Delp Engenharia, a company that supplies engineering services to the resource sector in Belo Horizonte.

 

Additionally, a cooperation agreement between the University of Queensland and the Federal University of Minas Gerais, a state research agency was signed with a backing of US$2 million commitment towards new research, especially water research. The investment deals with the Canadian government focused on mining, education, training and research sharing.

 

The huge revenues from mining, a robust and thriving industry sector in the region have been possible thanks to fair government policies and regulations on mining. The Brazilian mining regulation as contained in the constitution ensures isonomy, that is, equality of fiscal and economic treatment before law for all companies in mining sector regardless of the origin of their capital. This has subsequently opened doors for foreign investments in exploration and mining and the disclosure of vital information in the sector that an investor easily gets if they need.