São Paulo – The government of Brazil has delivered proposals for investment agreements with four African countries, namely Angola, Nigeria, South Africa and Mozambique, and should do the same with other nations on the continent in future. According to information disclosed by the Ministry of Development, Industry and Foreign Trade, which led the initiative, the objective is to provide greater safety to Brazilian company investment in the region.
The content of the agreements proposed, which are under analysis by the governments of the countries to which they were delivered, was not disclosed, but the ministry says that it escapes the standard agreement for investment with other countries as its clauses are less demanding. To formulate the treaty and choose the countries, the government heard the private sector and based itself on the experience of companies that already have operations and have invested in the region.
The last proposal was delivered to Nigeria, visited by the ministry in a delegation last week. The ministry is also evaluating the possibility of promoting delegations to two countries in Africa, Algeria and Morocco. The trips, however, are not yet confirmed and it is uncertain whether the proposal for investment will be similar to those delivered to Nigeria, Mozambique, Angola e South Africa. Initially, the government plans to close an agreement with these four countries, implement them, and then head to other nations.
According to the Ministry, the idea is for Brazilian company investment in Africa to help increase trade with the region, with sales of machinery and equipment, as well as articles like electric material and others. Several Brazilian construction companies have operations in Africa and there are also agricultural projects developed for Brazilians abroad.
In the accumulated result for this year up to September, Africa was the fourth region in the world that most imported Brazilian products. Purchases totalled US$ 8 billion. There was, however, a reduction in the same period last year, when imports were at US$ 8.6 billion. According to figures disclosed by the Secex, Egypt was the African country that bought most from Brazil this year, according to South Africa, Angola, Algeria, Nigeria, Morocco, Libya, Tunisia, Ghana and Kenya.
The main product that Brazil exported to Africa is sugar, according to figures disclosed in the first nine months of the year. The country also sells meats, grains and ores. Up to September, sugar shipments to the continent generated US$ 2.6 billion, followed by meats, with US$ 1.19 billion and grain, with US$ 754 million.
*Translated by Mark Ament
