Nairobi (Kenya) – President Luiz Inácio Lula da Silva said this Tuesday (6th) that Brazil wants to sign an agreement for producing biofuels in Kenya. According to Lula, Brazil could transfer technology to the African country, which has land available for agriculture. “Brazil has 13 years worth of experience. Kenya has the land and the willingness to produce clean biofuels for us to sell to wealthy countries, which will need to mix 10% of ethanol into the gasoline used in their cars starting in 2020,” said Lula in a joint address with the president of Kenya, Muar Kibaki.
Kenya is the third country visited by Lula in his trip to Africa this week. He has been to Cape Verde and to Ecuatorial Guinea, and should head to Tanzania today. This morning, the two presidents also discussed the establishment of an Afro-Brazilian University. His proposal is still being considered by the Brazilian Congress, but Lula stated that he “dreams of” laying the cornerstone before his term in office ends. The Afro-Brazilian University should be established in the municipality of Redenção, in the state of Ceará, and according to the project, it should offer 1,000 seats, being 500 for Brazilians and 500 for Africans.
Lula also stated that on the sidelines of the university’s establishment, Brazil may implement schools in Kenya in order to teach the Portuguese language. “[The university’s regulation] mandates that Brazil should teach Portuguese in Kenya and other African countries.”
Lula’s visit to Africa has a pragmatic tone that has been reaffirmed by several government officials, who underscored the need for establishing closer ties between Brazil and Africa, trade-wise. Lula stated that the East African Community (EAC), which includes Kenya, Burundi, Uganda, Rwanda and Tanzania, comprises 126 million people. Lula called on the Mercosur to establish closer ties with this market.
Kenya is one of Africa’s most industrialized countries. The economy has grown over the last few years, despite the setback of last year’s world crisis. The services sector is on the rise, driven by tourism. Presently, services account for 62% of the country’s GDP. Agriculture accounts for 21.4% of the GDP, and industry, for 16.3%. Studies conducted by consultancy firm Economist Intelligence Unit and cited by the Brazilian government point out that the Kenyan economy should grow by 3.4% in 2010 and by 5% in 2011.
Trade relations between Brazil and Kenya have grown six-fold over the last seven years. bilateral trade increased from US$ 14 million in 2003 to US$ 91 million last year, despite the effects of the world financial crisis, which led trade flow between the two countries to drop by 11% compared with the previous year. Brazilian businessmen accompanying the president in his visit to Africa have spotted yet-untapped market niches, and want to increase sales in sectors in which there already are more solid trade relations. There are good perspectives for fuels, pharmaceutical products, automobiles, tractors, and other industrialized goods.
*Translated by Gabriel Pomerancblum
