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Brazil confirms Africa's priority in its international agenda as it forgives the continents foreign debt.

May 16, 2013

Brazillian Article Translation

"Brasil confirma prioridade da África em sua agenda externa ao perdoar dívidas"

"O Brasil confirmou que a África é uma prioridade de sua agenda de política externa ao anunciar que perdoará e reestruturará dívidas de 12 nações desse continente, rico em recursos naturais, onde tanto Brasil como a China buscam ampliar sua influência. A presidente Dilma Rousseff anunciou o perdão e a reestruturação de uma dívida de 900 milhões de dólares no sábado em Adis Abeba, na Etiópia, onde participou das celebrações dos 50 anos da União Africana."

Brazil has confirmed that Africa is a priority in its foreign policy agenda by announcing that it will forgive and restructure the debt of 12 countries in the continent, rich in natural resources, where both Brazil and China seek to expand their influence. President Dilma Rousseff announced the total relief and restructuring of 900 million dollars worth of debt on Saturday, May 25th, in Addis Ababa, Ethiopia, where she participated in the celebration of the 50th anniversary of the African Union.

This article has been translated from Portuguese. Click here to read the original version on Em.com.br.

She also announced that Brazil, the seventh largest economy in the world, which a decade ago extended its presence on the African continent, will create an International Agency of Commerce and Cooperation for Africa and Latin America. "For us, the relationship with the African continent is very important," said Rousseff.

Oliver Stuenkel, professor at the Getúlio Vargas Foundation, pointed out that Brazil, "understands well that Africa is the last frontier of the global economy, where we will see high growth rates in the coming years." "This policy reflects an economic interest in Africa, but also a political one: there are 54 African countries in the UN, where Brazil aspires to a permanent seat at the Security Council. In addition, these countries recently helped elect a Brazilian (Roberto Azevêdo) as general director of the WTO."

Rousseff has given continuity to president Luiz Inácio Lula da Silva's policy in the region, which established Africa as a top priority on Brazil's foreign policy agenda through strongly advocating for South-South cooperation.  Trade between Brazil and Africa increased from $5 billion in 2002, to $26.5 billion in 2012, and 20 embassies were established, now numbering 37, which represent an important part of Brazilian diplomatic presence in the region.

Large Brazilian companies have expanded in Africa, particularly construction companies that have taken on massive infrastructure projects, and Petrobras, followed by banks and bus manufacturers. Vale, the world's largest iron producer, is present in nine African countries with an investment of 7.7 billion dollars.

The Brazilian Development Bank disbursed $682 million dollars in 2012 to Brazilian companies that are developing projects in Africa, 46% more than in 2011. Despite the growing Brazilian presence in the continent, it is still small in comparison to China. However, "Brazil's projects compliment developmental initiatives currently taking place in the region." This can be seen, for example, in the different technical cooperation programs aimed at agricultural production as well as other technological transfers from Brazil to Africa.

Brazil will also cooperate on health, social programs, food security programs, and biofuels production. "In the last decade, Brazil has become the main actor in the continent, competing with China and India for influence and trade agreements." A study published by the International Relations Institute Chatam House, indicates, however,  that Brazil is less interested in the continent's natural resources, which it already has, but more interested in a "promising market for its goods and services."

Brazil's participation in Africa, "should not be seen as a purely economic strategy." It reflects the countries ambition to be recognized as a major actor in international relations and politics. Those countries that have benefited by Brazil's decision to forgive or restructure their foreign debt are: Congo, Ivory Coast, Gabon, Guinea Bissau, Equatorial Guinea, Mauritania, Sao Tome and Principe, Democratic Republic of Congo, Senegal, Sudan, Tanzania and Zambia.

The countries with the largest debt and who most benefited from Brazil's decision were the Democratic Republic of Congo ($352.6 million dollars), and Tanzania (237 million dollars,) both of whose debts were alleviated and restructured. Most of these loans originated in the 70s and 80s.

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Africa Program

The Africa Program works to address the most critical issues facing Africa and US-Africa relations, build mutually beneficial US-Africa relations, and enhance knowledge and understanding about Africa in the United States. The Program achieves its mission through in-depth research and analyses, public discussion, working groups, and briefings that bring together policymakers, practitioners, and subject matter experts to analyze and offer practical options for tackling key challenges in Africa and in US-Africa relations.    Read more