Top Cities

The State’s investment agency Investe São Paulo recently shared the results of the BCI 100 index for the year. The study is undertaken by Delta consulting firm and is based on the appreciation of 77 topics in ten different segments (generic, governance, quality of life, economy, finance, housing, health, education, security and digital inclusion).

The ranking suggests regional vocations and trends for future economic development which may prove crucial to the good positioning of new businesses and investments. The top 10 cities in Brazil accordingly are:

1   - Santos - SP
2   - Belo Horizonte - MG
3   - Jundiaí - SP
4   - Blumenau - SC
5   - Campinas - SP
6   - São Bernardo do Campo - SP
7   - Mogi das Cruzes - SP
8   - Mauá - SP
9   - Curitiba - PR
10 - Santo André - SP

Never Better

On December 22 the Ceará State-headquarter Pague Menos (“Pay Less”) Drugstores holding company announced that General Atlantic Growth Equity Investments based in New York committed to an investment of R$ 600 million to support the former’s next phase of expansion.

Pague Menos was established in 1981 and today has stores in every Brazilian member State. Its network amounts to 820 stores in 300 different municipalities, growing at the rate of 80 new stores yearly. With around 20,000 employees, it foresees total revenue of R$ 5 billion in 2015.

In his statement General Atlantic CEO Bill Ford pointed out that “Pague Menos has kept a high growth rate even through difficult economic times for Brazil, displaying its resilience and its differentiated proposition of value to its customers”. The same is known to have invested over US$ 1.5 billion since 2000 in Brazil, in segments like animal health products education and investment consulting services.

The transaction comes at a time when business in general is low due to the combination of political and economic adversities currently faced by the country. What is nevertheless remarkable in such story is that it clearly signals to the potential of major gains for investors who dare to act right at this moment.

Half Empty, Half Full

This Wednesday a conference on projections for 2016 took place at SECOVI Real Estate Union in São Paulo. The tone of the presentations did not differ from the reigning mood in the Brazilian society these days in view of gloomy prospects in the short term.

The makings of the current crisis are at this point widely known. In a nutshell, having benefitted from favorable circumstances in the world economy for a long time, the Lula and Rousseff administrations nevertheless failed to promote growth sustainability through the necessary investments in infrastructure, technology and productivity.

Worse yet, in the past few years interest rates, fuel and electricity prices were all kept arbitrarily low. In the meantime government expenditure never ceased to increase, contributing for the creation of a serious fiscal imbalance.  That added to the aggravation of the government-owned Petrobras oil company’s hardship, contaminated as it was by mismanagement and corruption.

Almost a year into its second term in office, the government has been consistently losing support in Congress. Necessary laws to salvage its accounts from turmoil failed to obtain approval from the parliament. According to today’s speaker former Central Bank president Affonso Celso Pastore, although Brazil’s foreign trade balance has lately been improving, “there will be no solution without budget cuts and reforms”.

It is clear to see that such state of affairs can only deepen the crisis and delay the recovery from it. Bad news for most local entrepreneurs and workers, but not necessarily so for foreign investors since Brazil is temporarily on sale. Things are bound to worsen before they get better again – which will happen sooner or later.

Yet as Executive and Legislative clash, the Judiciary takes the lead. Investigations on the corruption-linked scandals at government-owned Petrobras oil company keep producing arrests and sentences against those responsible for some of the largest contractors in the country as well as implicated party officials and – lately – even previously unsuspected congressmen. Others may follow soon.

For another speaker, political correspondent Eliane Castanhede, not all is lost though. “The half empty glass is also half full”, she says. In the midst of this huge ethical and moral crisis, “something is changing in this country, perhaps the construction of a new sense of citizenship”. Now that is good news for everyone.

Speaking for cooperation at the Lebanese University

Speaking to the students at Université Libanaise (UL) in Beirut this Thurday 5th was a rewarding experience. First of all because they seemed quite self-centered for their age. Secondly they also appeared to be genuinely connected to the subject of international cooperation. Scholars present were just as much interested.

NGO-like business is like a message in a bottle at sea. As you throw it out you can only hope someone gets it somewhere some time. Talking to those who are willing to act on your proposition renews the expectation of results to follow, even though following up on it is knowingly a hard task to achieve.

Years of practice demonstrate that goodwill alone does not suffice to see your well meant purposes materialized. Almost fifteen years into this line of work, the overall status quo of the relations in question does not look to have changed much. However a more detailed analysis will reveal some actual developments. The international audience we have been hammering on for so long with our message at least starts to acknowledge the existence of our mission (i.e. the integration of peoples based on a common cultural and ancestral origin). Perhaps this has to do with the way changes produce themselves, slowly and gradually, too much so for an individual's realization.

One of the insistently repeated points is to depart from the traditional concept of foreign trade. Had we not taken that view, it would be far too hard for countries so different and continents apart to engage into productive collaboration. We instead opt for the broader view of business to include not just merchandise, but also services, intellectual property and even labor.

In the case of Brazil and Lebanon that includes engaging into joint business with the latter's zone of influence and vice-versa. Lebanon hence becomes not just the small-sized though quite sophisticated marketplace. Its assets now comprise its expatriate business community in the Persian Gulf, Africa and elsewhere. Brazil in turn, apart from being in its own right a proven business frontier yet to be fully exploited, also presents itself as a partner of outmost regional relevance.

The idea of free trade between Lebanon and the Mercosul block has as primary goal to facilitate and increase imports of Lebanese products. Buying more wine and olive oil from Lebanon will definitely not harm the industries of Mercosul member countries. It should instead induce mutually beneficial Lebanese-assisted business to the interest of those same countries in the vast territory where Lebanese are present and exercise decision making influence.

Coming back to the UL students we just met, it is our view that a skillful labor-hungry Brazil should additionally incentive the immigration of qualified ambitious youngsters like those, having as bonus for their success the existence of a Lebanese community a mounting to close to 5% of the entire Brazilian population. The foreseen result: generation of wealth, employment, know-how and technology for growth and progress.

That is of course just one among our conclusions upon visiting UL. We must persevere and multiply fronts for cooperation in parallel. One instant task arising from the morning at UL is to assist them make contact with counterparts in Brazil with the aim to engage into joint projects as well as to exchange students. A brilliant move it may be, by the way.

In two week's time it will be the business delegation coming to us on the other side of the planet. Some interesting possibilities in line. A Lebanese bank considering the start of an operation there and a famous Lebanese chain of stores of the country's celebrated delicacies contemplating its first franchises there down South.

Time to move on, always.

An entrepreneur's determination

Walter Torre Jr., WTorre CEO, is one of the top developers in Brazil, having to his credit landmarks in São Paulo like the JK shopping center and towers as well as the award winning Allianz Park Arena, made a presentation at the SECOVI Real Estate Association on Monday 3rd.

With over US$ 60 million worth of developments in course, Torre expressed his determination to keep pushing for success despite the adverse economic circumstances and local regulations in need of reforms. He is adamant that those who get demotivated during crisis will regret it when the market in time recovers.

Walter Torre, a man of proven vision, concludes that the country is in need to catch up with its delay in infrastructure and therefore focuses on like projects for the future, such as new ocean ports in São Luiz, North Eastern Brazil, as well as an offshore one in Santos. Rejecting pessimistic views, he mentions the insufficient number of logistics facilities, thus keeping investing in warehouses, let alone an all-new sports arena in an unprecedented complex for tourist attractions in the city of São Paulo.

BRF speeds up global move

In the press today, BRF Brazil Foods, holding company of some of the most traditional well known brands of Brazilian food is focusing on the consolidation of its global business, particularly through the opening of a factory in Abu Dhabi, UAE, last November. The unit represents an investment of US$ 160 million and has an annual capacity of 70,000 tons of products. BRF's intention is to expand and consolidate its market share under the Sadia brand.

BRF has a vast range of products, including beef, hog and poultry meat. It has elected the Middle East, South America, Southeast Asia, Europe and Brazil as priority targeted markets. The group's movements confirm the trend for mounting internationalization on the part of Brazilian industry.

Long term ambition

In an interview published in today’s O Estado de São Paulo newspaper, economist José Alexandre Scheinkman portrays the current “delicate” situation in Brazil, stressing on the excessive recent euphoria “in and about” Brazil and particularly on the need to take the opportunity to promote structural reforms and not lose long term ambitions. Scheinkman, a Columbia and Princeton professor living in the US, gives a fair account of a context benefitting the daring and the determined against the hesitants.

Brighter Prospects for Brazil

Seen from the inside the much publicized crisis in Brazil shows signs of exaggeration just as the previously reigning euphoria used to. No doubt the current state of affairs slashes the myth of the country’s once supposed immunity to global contingencies. Without raw materials in high demand from China as tail wind, Brazil now faces the challenge of putting its economy back on track while containing mounting government expenditure.

Economy is no longer a tool for the implementation of policies of choice, but rather a bitter mathematical pill for financial wounds yet to heal. The setback strikes hard on the country’s self esteem as recession sets in. Having played the cicada of Aesop’s fable, it is up to Brazil’s specific weight to ensure that recovery is just a matter of time.

A cycle has definitely ended, bringing a new time of awareness which virtue is to put one’s feet firmly back on the ground. The 1980’s and the early 1990’s – when Brazil lacked even the basics of a reasonably organized marketplace – were tough enough moments, but ultimately led to resurgence in the form of a stabilization plan. Why not again now?

Maybe for the time being Brazilians will not be buying as many cars as usual, but maybe now local industry can more cost efficiently target a wider customer base beyond the country’s borders. A number of items from the resilient Brazilian industry may also regain competitiveness, not to mention services, its already  mighty agribusiness or opportunities in the huge unexploited potential for tourism, just to name a few.

The Brazilian State has lately had ultimate proof that several activities, including public services, will work better in the hands of the private sector, which more than ever points towards PPP’s and concessions in several segments. Social inclusion no doubt remains an extremely demanding task. No more with magic formulas, but instead through the upbringing of the new generations through quality education, itself another area for business exploration.

Brazil has not blasted off nor has it blown up as the magazine predicted at different occasions. It has remained the dormant giant destined to wake up one day. Betting on its future is only logical, given its intrinsic attributes. After all its collaterals – natural resources and population – do far exceed the risks.

History tells us that men of vision have repeatedly seized moments of turmoil to succeed greatly. Once again this may well be the case now.

The French revolution revisited

Consul General Damien Loras and his wife Alexandra hosted the opening of an early celebration of France's national on Friday July 3. The party took place at the Bienal Pavillion at Ibirapuera, the largest park in São Paulo. It had the perfect balance between the stylish and pleasant event and the institutional duty to promote France's image and values. It counted on the participation of related sponsoring businesses like a wine importers, a number of restaurants, a hairdresser among others, let alone the fashionable French fusion music presented by the DJ. The resulting attendance and exposure is the natural result of a consular job well done that deserves recognition.

Requisitos especiais * Special requests

Na última terça-feira (9), o Cônsul Geral dos Emirados Árabes Unidos, Saleh Ahmed Al Suwaidi, recebeu no Hotel Tívoli Mufarrej em São Paulo delegação da agência Dubai Export.

O Halal foi o principal tema do encontro. A certificação, cujo nome significa "permitido", "lícito", em árabe, vale para toda a cadeia, mas em especial para alimentos como a carne, principal item da pauta comercial brasileira naquela região.

São 1,4 bilhão os muçulmanos no mundo, enquanto o mercado global sujeito à Charia (lei islâmica) está estimado em nada menos que US$ 3 trilhões . Incluam-se aí as aplicações financeiras, já que o Islã repudia a usura e modalidades específicas são necessárias.

Os Emirados seguem com uma postura comercial pró-ativa e continuada - e isso é positivo. Para o outro lado de uma eventual parceria de negócios, a mensagem implícita é que o sucesso depende de preparo e conhecimento.

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On Tuesday 8th the Consul General of the United Arab Emirates, Saleh Ahmed Al Suwaidi, received the Duba Export agency delegation at the Tivoli Mufarrej Hotel in São Paulo.

Halal was the main subject of the event. The certification, which Arabic name means "allowed", "legal", is effective for the entire chain, but to food like meat in particular, number one item in the list of Brazilian exports in the region.

There are 1.4 billion muslims in the world, whilst the global market subject to Charia, the Islamic law, is estimated at no less than US$ 3 trillion, including financial transactions, once Islan rejects interest, thus demanding specific operations to be devised.

The Emirates keep a pro-active and continuous business attitude - and that is positive. For the other end of an eventual deal, the implicit message is that success depends on study and knowledge.

Forza Milano!

Aberta ontem a Expo Universal de Milão. A cidade foi nossa grande incentivadora na campanha de São Paulo pela próxima edição, em 2020. O privilégio acabou ficando com Dubai, com justiça, pela determinação e comprometimento. Restaram-nos os ensinamentos daquela candidatura, o estudo de grandes eventos e os melhores exemplos de planejamento urbano. Por fim, um sonho a realizar.

De volta ao presente, cidades milenares como Milão ou Turim, só para falar das italianas, continuam se reciclando e se reinventando. Para Turim, foram os Jogos de Inverno de 2006 a impulsionar o renascimento da cidade após o fim de seu ciclo industrial. Já Milão coloca agora todo o esforço e criatividade em um projeto ambicioso, custoso, mas com muitos benefícios à vista para sua gente.

Forza Milano!

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The Milan World Expo opened yesterday. The city has been our great supporter during the São Paulo campaign for the next edition in 2020. The privilege ended coming well deservedly to Dubai, thanks to its determination and commitment. We are left with the lessons of that candidacy, the study of large events and of the best exemplas in urban planning. Thus a dream yet to fulfill.

Back to the present time, ancient cities like Milan or Turin – just to mention Italian ones – keep recycling and reinventing themselves. For Turin it was the 2006 Winter Games to propel the city’s rebirth after the end of its industrial era. Now Milan puts all the efforts and creativity in an ambitious and costly project, however with many benefits ahead for its people.

Forza Milano!