The Brazilian Trade and Investment Promotion Agency (ApexBrasil) presented, this Tuesday (17), the 23 agreements signed with business entities and the agreement signed with the Brazilian Micro and Small Business Support Service (Sebrae) to support the country’s exports, with the attraction of investments and the promotion of Brazilian companies abroad. The sectoral initiatives involve R$ 537 million in resources and should benefit almost 19 thousand companies in the next two years.
The agreement with Sebrae aims to encourage cooperatives, micro and small businesses (MSEs), especially in the North and Northeast regions, to initiate or improve export-oriented strategies. Approximately R$175 million will be allocated to the development of new products and methodologies to fill gaps in the journey of entrepreneurs who want to export, actions aligned with the National Export Culture Policy.
At an event at the Planalto Palace, President Luiz Inácio Lula da Silva celebrated the partnerships and reaffirmed the importance of making money circulate in the hands of the population to boost the economy. “The magic word is to turn people into small consumers,” he said.
“I only think about consumption because there is no industry if there is no consumption. No one will invest in an industry if there is no market to sell their product. So the miracle is for us to create conditions so that everyone has a little bit,” added Lula, defending the policy of appreciation of the minimum wage as an income distribution policy in the country.
In the same vein, the president defended the provision of credit to small and medium-sized business owners. “It is much easier for a bank manager to serve just one guy who wants to borrow R$1 billion, and who will also smoke a cigar if he receives the loan, than to serve a thousand people wearing flip-flops, with feet full of barnacles, who only want to borrow R$50 thousand,” he said.
“If it took so long in this country to talk about small and medium-sized companies, if it weren’t for us [os governos do PT]. there was no general law for micro and small businesses, there was no MEI, there was no Ministry of Small and Medium-sized Businesses that we created, Apex did not exist, because all of this was done to create conditions to make the invisible visible. And, when we manage to make the invisible visible, things improve”, he stated.
Through the acts signed this Tuesday, actions will be carried out such as the promotion of Brazilian businesses at international fairs, business rounds with foreign buyers, missions with importers to Brazil to learn about Brazilian production, in addition to market studies, defense of interests and access to markets.
Export economy
Exports could be the “flagship” of the good economic cycle that Brazil is experiencing, says Finance Minister Fernando Haddad – Marcelo Camargo/Agência Brasil
For the Minister of Finance, Fernando Haddad, exports could be “the flagship” of the good economic cycle that Brazil is experiencing. According to Haddad, the tax reform will eliminate the cumulation of taxes, “which is a problem for the Brazilian economy,” from the current tax system. “When we turn the key and eliminate the cumulation, you will be able to work with the real price of the goods, under conditions of competitive equality with your competitors that are established in other countries. This will be a productivity gain for the Brazilian economy.”
Haddad also stated that the government has been working to offer credit and create guarantee funds to finance small exporters, as is offered to large exporters.
“This issue – tax, credit and insurance – is a very important tripod that Brazil has never definitively faced in order to transform. Brazil has always thought about the domestic market – we were the champions of import substitution. But this model has run out, it ran out a long time ago. Either we become an export platform or in this new world that we are living in, with artificial intelligence, with ecological transition, what is at stake is very challenging,” he said.
“We therefore need to rethink ourselves and look more outwards. And without this tripod, it is very difficult to compete. We need to have a new tax system, a new credit system and a new system of guarantees to give Brazilian entrepreneurs the best conditions to compete. There is no lack of talent in Brazil, there is no lack of creativity in Brazil, we already know that. We need more solid institutions, support, and backing for these entrepreneurs and we will reap the fruits of this initiative very quickly”, added Haddad.
Small
According to the government, cooperatives, micro and small businesses represent around 41% of all Brazilian exporting companies, but the amount traded by this segment does not reach 1% of the total resources moved in the country, which in 2022 amounted to US$ 3.2 billion. In addition, almost 60% of exports by SMEs are to the Americas.
Sebrae president Décio Lima also noted that the SME sector represents almost 95% of Brazilian companies and, in formal employment alone, is responsible for 80% of the country’s employability. For him, it is possible for Brazil to overcome its problems with a shared economy.
“There is no turning back from imagining an economic model, even a small one, that is not globalized. […]. Small businesses, now, at this moment, with this agreement together with Apex, will also be included in order to have a programmatic and protective process for small economies in the world of globalization”, he stated.
The president of ApexBrasil, Jorge Viana, highlighted that the entity recently created the Export Grant to support entrepreneurs in Rio Grande do Sul, affected by the historic flood that hit the state in May.
“We at Apex do not think it is fair that companies from Rio Grande do Sul should not participate in scheduled international events and trade fairs due to a lack of resources as a result of the drama we are experiencing there,” said Viana, explaining that the agency will pay for travel and accommodation so that these participations can continue to take place.
Agreements
Of the R$537 million that will be invested through agreements with sector entities, R$287 million will be contributed by the Brazilian government, through ApexBrasil, and R$250 million by the private sector. The agreements are expected to generate more than R$281 billion in international business, including exports and foreign investments to be applied in strategic projects in Brazil.
Apex signed 14 agreements in the industry and services area, aimed at the internationalization of strategic sectors of the Brazilian economy, totaling an investment of more than R$278 million.
In agribusiness, there are seven agreements to expand the presence in international markets of the sectors of processed rice; chocolate, candy, sweets and peanuts; beef; frozen fruits and pulps; machines, equipment, inputs and technology for the production of ethanol and sugar; ethanol and corn bran; and products for pets. The total investment amounts to R$75 million.
The agreement between ApexBrasil and the Brazilian Private Equity and Venture Capital Association aims to attract foreign investment of around R$24.5 billion over the next two years. The partnership focuses on raising international funds for Brazilian equity investment funds, which will in turn invest in companies and projects, including opportunities related to the New Industry Brazil (NIB) and the New Growth Acceleration Program (PAC).
The agreements also cover the furniture sector, with R$33.6 million to support the segment in order to expand and strengthen its presence in international markets.
