São Paulo – Brazil’s trade with Africa remains modest given its potential, says Carlos Sérgio Sobral Duarte, Secretary for Africa and the Middle East at Brazil’s Ministry of Foreign Affairs. The diplomat spoke on the second day of the 12th Brazil Africa Forum, which is taking place at the WTC Sheraton in São Paulo this week.
After mentioning the establishment of the African Continental Free Trade Area (AfCFTA), he said it represents a great opportunity for the world, for Brazil, and for Mercosur. “In 2022, more than two-thirds of Mercosur’s exports to Africa went to countries with which the bloc has no trade agreement, so there is significant room for expansion,” he said.
According to Duarte, while Brazil has a USD 22 billion trade with Africa, India’s trade with the continent reaches USD 100 billion, and China’s amounts to USD 243 billion. “It’s very modest, but even so, there are encouraging data and signs,” he said regarding Africa-Brazil trade.
The diplomat listed Brazil’s main export destinations in Africa: Algeria, Egypt, South Africa, Morocco, and Nigeria. On the other hand, Brazil primarily imports from Algeria, Morocco, Nigeria, Angola, and South Africa. According to him, Africa accounted for only 3.5% of Brazil’s global trade in 2023. “The potential here is evident,” he said.
According to Duarte, the stock of direct investment from Africa in Brazil reached USD 2.3 billion in 2021, with South Africa being the main investor. He mentioned examples of these investments like the announced expansion of Terminal 3 at São Paulo’s Guarulhos Airport by a South African company and a fertilizer plant in Maranhão by a Moroccan company. Brazil’s investment in Africa reached USD 1.9 billion in 2021, with Angola being the primary destination.
The diplomat highlighted Africa’s potential, with an average annual growth rate of 3.5%, 65% of the world’s available arable land, and 60% of its population under the age of 25. According to him, six of the world’s 15 megaprojects, each with investments exceeding USD 10 billion, are in Africa. The AfCFTA could boost Africa’s income by 7%, Duarte noted.
The representative of Brazil’s Foreign Ministry emphasized the continent’s priority in Brazil’s foreign policy, a point that had already been made by Foreign Minister Mauro Vieira at the opening of the event on Monday (14). “This is a priority that has a direct relation with Brazil’s domestic policy, where there is an inclusive project with goals for socially just and environmentally sustainable development,” he said, also mentioning the alignment with Brazil’s guidelines during its presidency of the G20.
Trade could expand
The executive vice president responsible for global trade at Afreximbank, Haytham El Maayergi, opened the second day of the forum with a viewpoint similar to Duarte’s, emphasizing the transactions and cooperation projects between Brazil and Africa. He also said there is still much to be done in the relationship between the two sides of this partnership, particularly regarding the expansion of trade.
He presented to Brazilians an overview of the continent, highlighting some recent advancements such as the increase in consumption of goods, improvements in the business environment, a growing middle class, ongoing population growth, potential for renewable energy, as well as investment opportunities in agriculture and the growth of the textile, automotive and technology industries on the continent.
The Brazil Africa Forum is organized by the Brazil Africa Institute, led by João Bosco Monte, and is held with the support, partnership, and sponsorship of various companies and institutions. Brazil’s federal government and Ministry of Foreign Affairs were among the supporters of this edition.
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Translated by Guilherme Miranda
