Brazil has officially joined the Lusophone Compact, an initiative working to accelerate private sector development in Portuguese-speaking countries in Africa, known as the PALOPs (Angola, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique, São Tome and Príncipe).
The country's minister for Planning and Budget Simone Tebet signed a Memorandum of Understanding with the president of the African Development Bank Group Dr Akinwumi Adesina on Monday 22 April in the capital Brasilia. The memorandum was also signed by ambassadors present from Portugal and Portuguese-speaking African countries.
The Lusophone Compact initiative was launched in December 2018 between the African Development Bank, the government of Portugal, and the six PALOPs.
Speaking during the signing ceremony in the capital Brasilia, Minister Tebet said, "Brazil and the Portuguese-speaking African countries share strong historical, cultural and social ties, and we need to work to strengthen economic ties through more investments, trade and cooperation."
Adesina, who is leading a delegation on a two-day official visit to Brazil, met with President Luiz Inácio Lula da Silva on Tuesday.
"We want to support the inclusive and sustainable growth of the private sector in the Portuguese-speaking countries in Africa," Tibet said.
Dr Adesina commended Brazil for signing up to join the Lusophone Compact. "Your membership will further strengthen the South-South Cooperation under the Compact. Your joining the Lusophone Compact is a further testament to Brazil's strategy to deepen economic and political ties with African countries."
The Bank Group president said that as the largest economy among the Community of Portuguese Language Countries, Brazil's leadership in agriculture, energy, health, industrialization and private sector development will bring much to the Lusophone Compact.
Earlier Monday, Adesina held meetings with senior government representatives including the Foreign Affairs, Agriculture and Health ministers, as well as representatives from the National Confederation of Industries to explore areas of further cooperation and partnership.
The Bank president said he was inspired by Brazil's desire to do more with Africa. "Brazil engages Africa with its heart. Brazil respects Africa, it shares with Africa and believes in Africa," Adesina said.
Under the Lusophone Compact Framework, the Bank has since 2019 approved $166.4 million of investments to partially finance projects across the energy and transport sectors, as well as enterprise development initiatives.
In 2022, the Bank approved two non-sovereign transactions in Mozambique and Angola--a corporate loan to Hidroeléctrica Cahora Bassa (HCB) worth EUR 520 million (of which the ADB ticket was EUR 100 million), and a $10 million Trade Finance Transaction Guarantee to Banco Fomento de Angola (BFA) S.A.
In 2023, two private sector projects following the blended finance structure were approved the $12.35 million "Youth and Women Entrepreneurship and SME Development Lusophone Compact Facility" in Guinea-Bissau, and the $20.13 million "Building Coastal Infrastructure Connectivity" and Blue Enterprises in São Tome and Princípe.
