São Paulo – The minister of Development, Industry and Foreign Trade, Miguel Jorge, said, in an interview to ANBA, that there are many business opportunities for Brazilian companies in Algeria and Oman, countries he visited last week while heading a trade delegation.
The government of Algeria, for example, presented an investment plan of US$ 286 billion for the coming five years. "There are many ways, many works are being developed. Not just works, but there are possibilities for cooperation in several areas for small and medium companies. They are going to work on professional qualification, to build schools, universities and also technical schools. All of that, not to mention the infrastructure area, with highways, dams and ports”, said the minister.
Jorge met with several Algerian and Omani ministers, Abdelaziz Bouteflika. "He [Bouteflika] showed great interest and appreciation for Brazil," pointed out Jorge. The minister added that "there is great interest of the government of Oman in Brazilian companies". Read the main stretches of the interview below.
ANBA – You met with several Arab ministers and also with Algerian president Bouteflika. What were the main topics discussed?
Miguel Jorge – In this mission, we had to solve a specific matter with the ministry of Agriculture [of Algeria], but there was no need to discuss the matter with the minister, as the impasse in exports of processed chicken was solved directly by personnel in the technical area. However, there was still a long meeting with the minister of Agriculture. We invited him to travel to Brazil, to learn about the main experiences, mainly those connected to the Ministry of Agriculture, Livestock and Supply. In Algeria, what happened was a fact that is uncommon, but of great relevance: the president [Abdelaziz Bouteflika] having spent three hours with us. That was truly surprising.
How was the meeting with the president?
He showed that he is very well informed on several matters, including those regarding Brazil and the Amazon. He showed special interest in discussing the Amazon. He also spoke about books by Lévi-Strauss [a French anthropologist and philosopher], which he read to learn about details of science and anthropology. He asked many questions about our neighbours, mainly [Venezuelan president Hugo] Chávez and [Bolivian president Evo] Morales.
He spoke about their relations with [president Luiz Inácio] Lula [da Silva]. He then spoke much about Cuba, about the economic situation, about the fact that 500,000 people have left public service. He spoke much about the port that Brazil is building in Cuba. He then asked for [his] minister to ask for further details about the port project. It was a very interesting conversation. He recalls the past very well, when many Brazilians asked for asylum at the Algerian embassy, and many Brazilians lived in Algeria as political refugees.
Did the president mention areas of interest for cooperation and investment between both countries?
He spoke much about agriculture. We also spoke about oil exploration in ultra-deep water. We explained how the discovery [of the pre-salt] worked, the depth. And he was very impressed that Petrobras can extract oil over 100 kilometres in depth. We then spoke about ethanol, the Amazon. The discussion about the Amazon was due to the fact that our agricultural production is very distant from the Amazon, not touching it.
As we currently have great production of grain and ethanol, he was very impressed. We showed that in Brazil we currently consume more ethanol than petrol. What he showed was enormous affection for the country. He was very happy, and enquired about football, asking us to send a football coach to Algeria, as they fired their coach. So I said: “But president, we also fired ours".
The government of Algeria announced a plan for investment of US$ 286 billion. How can Brazilian companies be benefited?
There are many ways, many works are being developed. Not just works, but there are possibilities for cooperation in several areas for small and medium companies. They are going to work on professional qualification, to build schools, universities and also technical schools. All of that, not to mention the infrastructure area, with highways, dams and ports. There are many possibilities for participation by our companies, which already have important presence in North Africa.
How about Oman? What were the main sectors of interest?
There is great interest of the government of Oman in Brazilian companies. There was a specific order for the mission going to Algeria to go by Oman, a small country, but with great operation in some areas. They also have a plan for investment in infrastructure. Our Vale is investing heavily there, around US$ 1.3 billion in Sohar port. They bought participation in an Omani [iron ore] pelleting company and are studying some investment with the Omani oil company, with possible joint investment in African countries, like Mozambique and Angola.
There is also an engineering company that participated in the delegation, Fidens, which has two important tenders in the country. They are two great projects, one for US$ 400 million and another for US$ 1.5 billion. And Embraer is participating in a tender for the sale of aircraft for maritime patrol. They are the aircraft that have an enormous belly, where all the equipment to find vessels in the sea is placed, for search and rescue of vessels. This is a tender whose result should come out over the next two or three months.
Will there be another delegation to the Arab countries in November?
We are going to Kuwait, the United Arab Emirates, Saudi Arabia, Qatar and Syria. This should be the last great mission of 2010. We will have another five or six smaller missions with secretaries and vice ministers. That is not to mention those by other ministries. [Defence minister Nelson] Jobim, for example, is now in China.
What is the importance of the Middle East and North Africa to Brazil in terms of opportunities for partnerships and investment?
Brazilian companies already focus on three important areas. One is in Latin America, the most obvious one, the closest and the easiest to operate. Even due to the fact that most companies already have something in Latin America. In the case of Africa, over the last four or five years alone, due to this movement by president Lula, companies have woken up to Africa. There were just one or two companies operating in Africa, now there are several. The Arab nations are difficult due to the distance, but there is also an interesting focus for these companies.
Are you stating that due to the opportunities the market offers?
Due to the opportunities and to the fact that we consider, with great evidence, the fact that Brazilian companies should become international. So we are currently on the foreign market as we have never been before, if taking into consideration the last eight years. There are companies in the area of civil construction that historically started this process. Odebrecht has been in Angola for thirty years.
We have food companies that stopped importing and are now even exporters. There were some distributors and they started operating abroad, buying local companies.
One of the companies that is there [in the delegation], [construction company] Queiroz Galvão, had nothing in the region three years ago. Now, over 10% of revenues come from Africa. It is a great step.
And what is the route to open doors for Brazilian companies abroad?
Many companies are establishing partnerships. It is that story: the enemies are others. That helps promote the "Brazil" brand. A fundamental factor that I think resulted in a visible change in recent years is the engagement of the Ministry of Foreign Relations, through not only the Foreign Office, but also Brazilian ambassadors.
All you have to do is see these last meetings. He (the ambassador) who is organizing the meetings, who pushes, who participates in all we do, who opens routes for companies. Companies have learnt that they may seek the ambassador, that he is a tool for them in the country. He is prepared to work because, to him, it is also important. A few years ago there were no enquiries by companies at embassies. When companies started doing that, they were there to help and have answered in a spectacular manner.
*Translated by Mark Ament
