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Relations with Africa could be better explored by Brazilian companies

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Portuguese Translation of the Week

In commemoration of the fiftieth anniversary of the African Union which was celebrated on May 25thin Addis Ababa with the presence of President Dilma Rousseff, Brazil's gift was the debt forgiveness of twelve countries in the region which amounted to approximately $900 million dollars.

Em comemoração aos cinquenta anos da União Africana, realizada em 25 de maio na cidade etíope de Ades Adeba, com a presença da presidente Dilma Rousseff, o presente do Brasil para doze países da região foi o perdão de uma dívida aproximada de US$ 900 milhões.

This article has been translated from Portuguese. Click here to read the original version onIsto Dinhiero.

In a statement rebutting criticisms, the Foreign Ministry affirmed that the decision was not about Brazilian voluntarism, "but about a concerted foreign policy effort with clear objectives to disable the weight of the debt from impeding economic growth and poverty eradication." The Foreign Ministry also argued that the debt forgiveness is a way of increasing Brazil's economic potential in the region.

According to the Foreign Ministry, trade between Brazil and Africa (values of exports and imports) increased five times from $5 billion dollars in 2002, to $26.5 billion in 2012. Beyond the economic factor, the country also exerts influence through cultural ties which were intensified during the Lula administration.

Jonuel Gonçalves, an Angolan-Brazilian expert from the Institute of Strategic Studies at the Fluminense Federal University says that Brazil understands that China has a strong presence in Africa and that it must seek stronger economic relations with African countries. The debt forgiveness within this context is part of a larger strategic international policy.

"In recent years Brazil has been attempting to integrate into international politics through the IMF, the World Club and the debt forgiveness of African nations." According to Gonçalves, Brazil's actions have been influenced by claims by poorer nations that BRICS's have been exploiting them."

"The relationship between Brazil, China and India with African countries has been consistently criticized, indicating the need for the political gesture of the debt forgiveness," he stated.

Marcus Vinicius de Freitas, the coordinator of the International Relations program at FAAP, explains that the debt relief also fits the context of the projection of Brazilian leadership. "We want to exercise political leadership globally, which also encompasses economic policy. Part of the country's efforts to build an image of strong leadership includes debt forgiveness and stimulus for exports."

Freitas explains that what is lacking in Brazil-Africa relations is a stronger commercial bond. There is much to be explored commercially.  "In this matter, the problem is not only specifically Africa, but the Brazilian cost which prevents the country from being competitive in relation to China." The professor explains that China's strategy in the African continent consists of a strong economic program with a small political component, while Brazil's policy consists of a purely political strategy with some economic undertones.

Article translated by Anna Cardenas, Staff Intern for the Brazil Institute at the Wilson Center.

Photo attributed to Blog do Planalto on Flickr Commons.

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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