The African Development Bank has called for more Brazilian investment in Africa. Through the 11th delegation of the Brazil-Africa Forum (held in São Paulo, Brazil; Oct 31st-Nov 1st), the AFDB called for South American active participation in the Lusophone Compact. The Compact aims to improve Africa’s sustainable growth through the private sector.
Launched in 2018, the Lusophone Compact involves Portugal and six Portuguese-speaking African nations: Angola, Sao Tome Principal, Guinea Bissau, Cabo Verde, Mozambique, and Equatorial Guinea. AFDB urges Brazil to join Portugal’s efforts and gain from the available resources around the participating nations.
The Forum allowed the African Bank to showcase the renewable energy opportunities and resources in Angola, Sao Tome & Principle, and Mozambique. This is in addition to the bankability and transport sector, which collectively seek $200 billion in debt and equity financing.
There will be control of risks involved, with AFDB aiming to assure the select investors regarding the security of their investment. Initially, African nations have been incapable of repaying debts, especially when projects at hand fall.
According to Nana Spio-Garbrah, Manager of the Client Solutions Division at AFDB, “There is no longer any excuse for savvy investors to shy away from the continent. The synergies between the two regions are undeniable, and the returns of investing in manufacturing or infrastructure – whether aviation, ports, or railway – are attractive.”
Undoubtedly, the AFDB succeeds at mobilizing foreign investors to African-Climate-related projects. For instance, the Brazil-Africa Forum enabled them to have a round table of 40 potential select investors. Therefore, they put Africa’s interests ahead, with the push for African climate finance getting tougher. This is considering the challenging economic times and rapid climate change.
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