Pacified communities to get loan for buying franchises in Rio
Rocinha, one of the communities included in the projet
To grant credit to residents of pacified communities of Rio de Janeiro for buying franchises, and thus warrant their social and economic inclusion: that's the goal of the covenant signed on Tuesday (Sep. 1st) between the State Agency of Promotion (AgeRio) and Rio de Janeiro's Brazilian Association of Franchising (ABF Rio). Initially letters of credit of up to $4,000 will be issued for financing new microfranchises or for expanding the ones existing, which are run by local entrepreneurs, totaling an investment of $400,000. According to ABF Rio's president Beto Filho, the brands offered for microfranchising "show good profit margin and may be financed with 3% interest per year for people who live in the communities."
Luiz Fernando Pezão, governor of Rio, announced the he plans to increase investment and empower entrepreneurs. According to him, the government invested $10 million in the areas guarded by Pacifying Police Units (UPP), where 9,000 entrepreneurs create jobs and generate income. "There are bars, restaurants, hostels, hotels, beauty salons, mail carriers, motorcycle taxi firms. It's very diverse, [showing] wonderful creativity." The governor pointed out that interest rates charged are the smallest in the market. "In Brazil, nobody has the tools provided by AgeRio, which are of 3% interest per year, and 0.25% per month. Nobody works with such rate," noted Pezão.
According to a survey from the Data Favela Institute, about 12 million people live in communities in Brazil. They represent about $19 billion of potential consumers.
Celso Athayde, founder of the Unified Center for Favelas (Cufa), highlighted the importance for people to acquire great knowledge of the project operating mode, so that they may get loans "and pay it off, in order not to end up bringing problems later." Athayde regretted, however, that, with an amount of 1,226 favelas in Rio de Janeiro, the project is driven only to communities guarded by UPPs. For him, the ideal would be for everyone to have a chance.
According to data from the Brazilian Association of Franchising, in the first half of this year, the sector's revenues increased 11.2% compared with the same period of 2014, raising $17.387 billion.
Translated by Amarílis Anchieta
Fonte: Pacified communities to get loan for buying franchises in Rio
