This is the state flag of Espirito Santo, in southern Brazil. The inhabitants of Espirito Santo are perplexingly known as Capixabas.
The words on the flag, Trabalha e Confia translates to "Work and Trust [in God]". There are rumours that the the flag was originally designed for a gelati (ice-cream) parlour, and this is supported by the large number of Italians that reside in the state.
From about 1550 to 1850 the main export of Espirito Santo was sugarcane, however in more recent times the primary export is coffee. Tourism is becoming increasingly important aspect of the economy.
You can read more about Espirito Santo on Wikipedia
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