The Ministry of Industry, Foreign Trade and Services (MDIC) signed a cooperation agreement with SAP, a multinational company, to encourage the development of start-ups in Brazil.

The software multinational will invest R$ 40 million in the country over five years. The funds will be focused on creating digital services and using Internet of things (IoT) solutions for agribusiness.

The amount will be invested in SAP’s Research and Development Centre in Brazil, located in the city of São Leopoldo (state of Rio Grande do Sul). The company expects to open 600 jobs to maintain its growth in the country.

For the head of MDIC, Marco Pereira (photo), the cooperation agreement will bring more efficiency to Brazil’s agricultural sector. “With this agreement, SAP committed to establishing a support network for start-ups and small businesses and sharing best practices that can help Brazil in its path towards more efficiency in agricultural production and in sectors that benefit from it, such as transport and logistics,” said Marcos Pereira.