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Brazil & AfricaThe Brazilian government is forgiving or restructuring Africa’s almost $900 million debt in an effort to strengthen economic ties between Brazil and the African continent. Twelve countries will benefit from the decision, including Tanzania, Zambia and Congo-Brazzaville.

Trade between Africa and Brazil has increased in recent years, leading to an extensive partnership between governments. Brazil’s President Dilma Rousseff announced the decision during her third visit in three months to Africa.

“To maintain a special relationship with Africa is strategic for Brazil’s foreign policy,” Rousseff explained in a press statement.

It is also strategic to renegotiate debts since most were accrued in the 1970s and Brazil’s economy is continuing to expand. Africa’s economy is also mounting rapidly.

“Brazil has great expertise in what we call tropicalizing European crops,” Rousseff’s spokesman said. “We have that technology. The idea is how to transfer it from Brazil to African countries.”

Debts not forgiven will be negotiated to include lower interest rates and longer reimbursement windows.

Congo-Brazzaville, Tanzania and Zambia owe Brazil the most. More than $700 million of the continent’s collective balance to Brazil is split between these three countries. However, other countries including the Ivory Coast, Senegal and Sudan will also benefit from this agreement.

Rousseff has also signed several major agreements with African leaders to promote economic growth and cooperation. These partnerships stem from a sudden interest in Africa’s potential as an economic powerhouse.

Several countries – including China, India and Russia – are Africa’s biggest group of investors and newest trading partners. The Africa trade between all of these nations is expected to eclipse $500 billion by 2015.

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  • WhatIThink

    The way this normally works is they forgive the debt and then send their companies in to “do business” and “invest” which really means finance operations to extract the resources with little or no money going to the natives.

    As long as African people don’t own the land and don’t own own the companies there can be no benefit for Africans from trade or any other economic activity. Most of the economic activity in Africa is vampire economic activity where foreign companies and expatriates own the land and companies and make all the money. And the African people are simply landless peasants because their neo-coon governments don’t even acknowledge their BASIC RIGHTS to land ownership. Now how on earth is that? This is only because the governments in Africa today operate as custodians of the colonial vampire system that took all the land from the Africans to begin with. The apartheid system wasn’t limited to South Africa. ALL of the African colonies operated the same way, kicking Africans off their lands and forcing them to live in squatter camps and slums. In order to stay in power these clowns must allow the land to EXCLUSIVELY be available for foreigners to exploit at will, which means that in most African countries the government owns all the land and not the people. Therefore, when deals are made it is exclusively with them and not the people in an open “free” market society. So you can have all kinds of land grabs and concessions to foreigners where they get hundreds of thousands of acres of land for pennies per acre, yet and still the people that LIVE THERE can’t get a deed or title no matter how much money they have. So there cannot be any real economic benefit for the Africans because they aren’t even involved in the transaction. They aren’t selling the resources because they don’t own the land and therefore don’t have the rights to profits off the sale of the resources that are produced from it. All they can do is be the cheap labor that works in the fields and in the mines for those who have secured the rights and the ability to sell and profit off the resources of the land. Until Africans have the right to sell and profit DIRECTLY off the sale and trade of the resources coming out of African lands they will always be in poverty. And that will always be true as long as these traitorous politicians who take their orders from their masters in Europe stay in office.

  • Al

    Africa is hard to use as an economic center due to the diseases, high death rate,war ect. China is the only country with revenue from Africa (diamonds). China should buy the debt from Brazil. China would help the African economy.