Brazil 4 Business

Mato Grosso do Sul

Mato Grosso do Sul is the eighth place in the ranking of competitiveness from states to receive investments according to the IBGE. Located in the heart of South America, with several strategic advantages of logistics, economics and flowing of production, it has borders with Bolivia and Paraguay, plus five Brazilian states, with rail connections and waterways either with its neighbouring states as with neighbouring countries, such as the waterway from Paraguay River.

The state contributes R$ 49 billion to the national GDP, exceeding the average national growth in more than 41% in 2013. It is also targeted for investment in agriculture, livestock and tourism, with a large room for new investors.
 
It also highlights the great development in the construction sector in recent years and a greater investment capacity in the areas of bioenergy, electricity and clean energy. The diversification of industrial output enables aggregation of value to products, especially the  grains and meat processing sectors; leather and footwear; food; sugar and alcohol; textiles and clothing; mineral steel; metal-mechanic; pulp and paper; ceramics; packaging; wood and furniture.
 
The state government is an active partner of entrepreneurs. Through incentives, the state encouraged and attracted billions of reais in investments, responsible for generating more than 52.000 new jobs distributed over more than 50 municipalities.
 
Among the factors of increased competitiveness in the state are the quality of life, strategic and privileged location, abundant natural resources, easy manpower, as well as sufficient and reliable power supply. All this creates an environment that signals a positive scenario for industry consolidation as the main driving force of the state's economy.
 
The state also has a growing population and investments in technical and higher education, with objective courses for rapid immersion of trained professionals in the employees’ and collaborators’ state market.
 
The circulation of goods is done by 6700 km of paved roads and 1600 km of railways. The state covers two large waterways, the Parana River and Paraguay River, and has four international airports in the cities of Campo Grande, Corumbá, Bonito and Ponta Porã.
 
Mato Grosso do Sul invests along with the Federal Government in the works that will connect transport modes in order to reduce costs and time flow of production. The modernization of logistics includes the following projects:

  • Mato Grosso do Sul Rail way connection to the port of Paranaguá, Paraná, crossing the producing regions of Novo Maracaju-Golden-Mundo;
  • Railway connecting SP to MT, through Dourados, Maracaju and Porto Murtinho (border with Paraguay);
  • Ethanol pipeline implantation between Campo Grande and the Port of Paranaguá, Paraná;
  • Paving the MS-040, creating yet another road link with SP;
  • Paving the MS-359, between the BR-163 and the border with the state of Goiás, as well as highways of regional integration stretches in Alcinópolis / Figueirão / Camapuã;
  • Paving the southern border Highway, Brazil-Paraguay integration;
  • Implementation of a cargo terminal in Campo Grande’s airport;
  • Implementation of the intermodal cargo terminal and the Customs Industrial Logistic Center (CLIA) of Campo Grande. 

The government acts in search of new enterprises to diversify the economic matrix and generate new income opportunities for Mato Grosso do Sul's population. These initiatives are carried out through the following actions:

  • Institutional support for medium and long-term financing through the Constitutional Fund of the Central-West (FCO), National Bank for Economic and Social Development (BNDES), Inter-American Development Bank (BID), among others;
  • Areas of concession with basic infrastructure;
  • State tax incentives - reduction and deferral of state and local taxes in numerous industrial areas);
  • Qualification and workmanship training. 


To create favourable conditions for production, the Government encourages the development and deployment of new technologies, which increases the demand for qualification work to fill the growing job openings.
 
Many strategic projects include the modernization of transport logistics with integration of highways, intermodal cargo terminal, industrial airport and ethanol pipeline.
 
DISCOVER MATO GROSSO DO SUL
 
To assist and support to foreign investors, the International Business Centre (CIN) makes available to businessmen information, consulting services, organization of fairs, events and international missions. The CIN-FIEMS is part of a network led by the Confederation of Industry (CNI) and connected with dozens of international institutions in promoting business and investments.
 
Check in the left menu, a number of advantages to invest in Mato Grosso do Sul and please contact our team in the state.

Mato Grosso do Sul has industrial centers in accelerated development level. The state is a sure investment for both large and for small and micro enterprises, even though the state focus adheres agricultural activities. Mato Grosso do Sul's industry has been developing and modernizing.
 
The state is the target of new investments due to its location, incentives, logistics which nurture the competitiveness of industries. Know the principal focus for investment:
 

  • Second line of pulp production in two units already in operation in the state (Fibria - Eldorado Brazil);
  • Second line of paper production unit already in operation in the state of International Paper Industry;
  • New pulp plant due to come into operation in 2017;
  • Expansion of operations of iron ore extraction which should double the state production of the company Vale and Vetria;
  • Chemical processing of corn - citric acid, lysine, various acids, vitamin C and ethanol, with Chinese investment in the municipality of Maracaju;
  • MDF and MDP Industries in the county of Agua Clara;
  • Construction industry with segments focused on heavy construction, Factory fittings and highways;
  • Industry for soy protein, expanding the industrial plant of ADM Campo Grande;
  • Industry for  Corn Ethanol in Chapadão do Sul.

 Get to know some sectors with excellent investment opportunities:
 
Agricultural
This area is the state's largest growth driver. In 2014, Mato Grosso do Sul reached the seventh largest national income in the agricultural part and livestock until the end of the first quarter, with continued growth and room to grow even more. The state also has a strong investment in the sector, focusing on the planting of sugarcane and maintenance of plants for the production of alcohol.
 
Still in this segment, the potential production of ethanol and biodiesel from sugarcane has attracted many investors. The installation of 28 new plants and expansion of the existing 14 by 2009 generate demand for machinery, equipment, special vehicles for the activity, among other goods and services, and a wide field for scientific and technological research in the field of bioenergy.
 
 Tourism
Opportunities for investment in the eco-tourism area are immense. Mato Grosso do Sul has an exceptional natural heritage and a rich cultural background.  Pantanal is the most important scenario for the development of sustainable activities in rural tourism, which opens opportunity for companies looking to invest in a rich tourism, full of rhythms, colors and flavors.
 
 Industry
In the period from 2002 to 2011 the industrial growth has a 15.9% expansion a year, above that of agriculture and livestock sectors (7.2%) and trade and services (12.2%), according to IBGE data, SEMAC and FIEMS . Thus, Mato Grosso do Sul is among the states with the highest industrial growth from 2002 to 2011, growth of 336%, only behind the state of Pará (394%).
 
Estimated average nominal growth of Industrial GDP for the period of 2011 - 2014 is 8.6% per year. From 2011 to 2014, the estimate is that the Industrial GDP will grow at least more than 39%, reaching the equivalent of R$ 13.56 billion at the end of the final period.
 
The industry accounts for the second largest share of the wealth generated in the corresponding state for 22.8% of the total. From 2005 to 2013, the average annual growth rate of formal employment in industrial activities was 8.6%.
 
The industry is responsible for the second biggest inventory of formal jobs of Mato Grosso do Sul with 143,197 employees in 2013, corresponding to 22.4% of the total, only behind the services sector with 183.856 formal employees or 28.8%.
 
From 2009 to 2013, the average growth rate of exports on industrial products was 18.2%. In 2013, industrial products accounted for 67.8% of total exports from Mato Grosso do Sul.
 
In the period from January to December 2013, pulp and paper are the most exported product with R$ 1.07 billion, and then the Meat Complex with R$ 1.061 billion, the sugar and alcohol complex exported R$ 522, 2million. The mining industries and metallic minerals exported R$ 450.8 million, followed by the Vegetable Oil Industry and products of their extraction with R$ 206 million in exported products.

 Mining - metallurgical (exploration and beneficiation)
The state has huge mineral resources such as iron, manganese, limestone and carbonate, marble and granite, but there is a lack of investments in exploration and beneficiation of these minerals. Before long, there are numerous opportunities for pig iron extraction for the production of steel, laminated steel manufacturing and processing into final products, chemical products and charcoal from a lawful origin and improvement and adaptation of the transport system for transporting production.
 

PCHs (Electricity)
On a price rising scenario for electricity and incentives for investments in generation and sale of energy encouraged, the Small Power Plants (PCH) market is a great investment opportunity in Mato Grosso do Sul. Investment in PCH’s has some practical advantages: discount on transmission tariff, entitled to tax incentives and facilities in environmental licensing. The small power plants are even exempted from compensating municipalities and state the use of water resources.
 
Civil construction
One of the sectors that grew the most in recent years, construction has programs aimed at housing and carrying out major works on behalf the State development, warming the market and generating income as well as job openings in various areas - production, sales and commerce of materials. Currently, there are numerous factors that came to leverage numbers in the construction area. Salary growth in terms of reais, the largest purchasing power and the growing of the middle class, inflation at a controlled level, lower rate of unemployment, and increase in mortgage operations are some of the factors driving the industry.

The state of Mato Grosso do Sul provides various incentives and benefits, to stimulate the transformation of primary products and natural resources, extend the industrial production base and its internalization, encourage the creation of new industries in possession of advanced technology, giving greater competitiveness to the industrial park existing, virtualization, diversification and internalize value; generating employment and income for the population.
 
Municipalities hold different policies to attract industries, negotiated directly with the head of the Municipal Administration. Some benefits may be accepted as a donation of areas in industrial centres, earthworks, manpower training, exemption from Urban Territorial Property tax (IPTU) and Service Tax (ISS).
 
These incentives are supplemented with subsidized credit lines and planned training programs for skilled labour, customized for each investment. Among the main incentives include:
 
Fiscal incentive of the state

  • MS Entrepreneur Program: Grants benefits or tax incentives to industries that move to or expand their facilities, up to 67% of ICMS due for a period of up to 15 years, renewable for the same period, according to the enterprise profile. Possibility of exemption from payment of ICMS incurring on interstate entries or  on the import of machinery and equipment intended for the fixed assets of the company and deferral of ICMS due on imports of raw materials.
     

The municipalities Tax incentive:

  • Donation of areas in Industrial Cores;
  • Earthworks;
  • Exemption from Building Urban Land Tax (IPTU) and Service Tax (ISS);
  • Manpower Qualification;

Credits and targeted incentives:
 
In addition to the traditional credit lines offered by banks (Automatic BNDES, FINAME and PROGER), Mato Grosso do Sul holds a business development line created by the Constitution of 1998, aimed at promoting economic and social development of the Central-West, called Constitutional Fund for Financing of the Central-West (FCO). Companies and farmers can apply for loans of up to R$ 4.8 million which can exceptionally reach up to R$ 40 million.
 
The aim of the FCO is to increase the region's development, payment period. For fixed investment - the time limit is up to 12 years, including the waiting period of up to three years. For associated working capital the deadline is up to three years, including a waiting period of up to 1 year.
 
The Working capital also counts on the PRODES, The Program for Incentive to the Economic and Social Development of Campo Grande (PRODES) has the objective to attract businesses, increase offer of employment and increase the income of Campo Grande's population.
For this, it grants tax incentives and extra fiscals that are used as a promoting tool for the installation, expansion or relocating of industrial companies, merchants or service providers in the city.

The International Business Centre is ready to assist you in the process of obtaining incentives and various benefits, by coordinating with the various agents involved.