Brazil 4 Business

Rondônia

The GDP of Rondônia is approximately R$ 34 billion. This low value is due to the extensive native forest still untouched. The economy consists primarily of the service sector (~ 65%) and agriculture (~ 20%). With territory equivalent to the UK, it is the 13th in size, but in terms of population is 23rd. It borders with Bolivia, and the states of Amazonas, Acre and Mato Grosso.
 
The state presents a stable political situation and the proximity to countries in South America with low industrial development ensures great market opportunities.
 
The capital is Porto Velho with approximately 500.000 inhabitants and GDP per capita standards higher than the average in the Southeast and South.        
 
The main reasons for investments in Rondônia are:

  • Agricultural production is booming, enabling high availability of resources for certain sectors;
  • Recent investments in projects related to energy sources (hydroelectric of Jirau & Santo Antônio and gas pipeline of Urucu-Porto Velho);
  • Wide network of roads.

Food and Beverages: The wide availability of raw materials and proximity to markets with low industrial development amplify enormously the possibilities in the sector. It has emphasis on resources, meat and cocoa. As possible destinations, the various Latin American countries are attractive markets.
 
Pesticides: With over 20% of the economy from agricultural, Rondônia is a potential market for pesticides, which are currently either imported or from other regions of Brazil. Its strategic position among the largest grain and cereal producers, favours the expansion of possibilities.
 
Other non-metallic mineral products: the exploration potential of this sector is very large because it has mineral reserves still little intruded. The state has a past linked to mining, but it confers a low degree of professionalism in the activity and there is great room for development.
 
Equipment for energy production: The state goes through major investments in the sector, motivated by the construction of the hydroelectric of Jirau and Santo Antônio, and the Gas Pipelines of Urucu-Porto Velho. The power generation capacity provided by these works makes it the national point of view clear of making the state an exporter of electricity. The market suppliers for this class have plenty of room.
 
Pharmaceutical products: The state of Rondônia is known nationally by the great potential in the field of herbal medicines, still with very low exploitation. In order to develop this sector, the government provides incentives in many ways, being negotiable according to the impact of the activity that will be installed in the state.

With the intention to decentralize the industrial park (highly concentrated in the capital), the government negotiates incentives to more distant regions. Most of the incentives are related to the significant reduction of the ICMS. Each case (or industry sector) is evaluated separately, and the percentage of reduction is given by the planned investment size, potential to generate jobs and revenue.
 
Especially in remote areas, obtaining land can be greatly facilitated.