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The initiative is the work of “G10 Favelas”, an organization that brings together leaders and entrepreneurs from the ten largest favelas in Brazil, including Paraisópolis, in Sao Paulo, or La Rocinha, in Rio de Janeiro.
At the entrance to the Pabellón Social de Paraisópolis, the second largest favela in Sao Paulo, there are no statues of golden bulls, but a conglomeration of bare brick buildings. There are no experienced brokers inside the enclosure either, but there is a brass bell, symbol of the recently inaugurated “Favelas Stock Exchange”.
The ten largest favelas in Brazil created their own stock exchange, with which they intend to make local businesses flourish and open the doors to investors from all over the world. “The idea came to create a bridge between start-ups and those who want to act in the favelas of Brazil,” the president of “G10 Favelas”, Gilson Rodrigues, 37, a community leader from Paraisópolis, explained to the Efe agency.
The project, launched in mid-November, is the result of an alliance with DIVI-hub, a popular financing platform, based in Silicon Valley (California), which already has permits from the Brazilian Securities Commission (CVW) to regulate the shares of listed companies.
Any person, “rich or poor”, Rodrigues remarks, can invest and buy shares of 10 reais (almost 2 dollars). Shareholders, as in any other stock exchange in the world, will have the right to dividends, company shares or the return on their investment.
The first tenant of the Favelas Stock Exchange
The pioneer in this new stock market is Favela Brasil Xpress, whose founder and CEO, Givanildo Pereira, is 21 years old. His idea was born out of a pressing need: the serious problems in delivering parcels purchased via the internet in the favelas.
Pereira saw an opportunity and founded a company whose mission is to deliver the package to the consumer’s door. After several unsuccessful attempts to obtain loans, in the end he obtained a small one of 15,000 reais (2,700 dollars) from “G10 Bank”, another initiative of “G10 Favelas” that arose to facilitate access to credit to residents and that also prepares its IPO.
Now it aims to raise 1.3 million reais ($ 230,000) through a public offering of shares, which it hopes will have nothing to envy of an IPO anywhere in the world.
With EFE
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