Lula loves Africa but China’s a bigger friend

2010-07-10 10:39

Brazilian firms could start tapping the debt market in South Africa.

This has emerged as Brazil’s Luiz ­Inacio Lula da Silva winds up his final ­presidential tour of

Africa.

Lula has worked hard to increase

trade with other emerging economies as they play an ever greater global role and

has taken advantage of Brazil’s strong cultural links with Africa. He has visited more than 25 African countries,

six on this trip.

Brazil, with the world’s largest black African population after

Nigeria, ­tripled its exports to Africa to

$8.7 billion (about R66 billion) last year. Yet it lags behind China’s expansion

in ­Africa.

“Brazil in general pays very little attention to Africa,” said Rubens Barbosa, a former Brazilian

diplomat who is president of the council on foreign trade at Sao Paulo business

group FIESPI.

“I don’t think that to travel six or seven times to Africa opens markets to Brazilian products or markets.”

The proportion of Brazil’s trade taken up by Africa dropped from 7% in 2008 to 5.6% as of this May.

Its trade with Africa is still dominated by a

handful of countries such as Nigeria, Angola, and South Africa and by a few large companies such as miner Vale

and oil firm Petrobras.

Experts say a lack of funding compared to Chinese rivals has also

hindered Brazilian firms expanding in Africa.

That could result in Brazilian firms tapping the debt market in

South Africa for the first time, said Eduardo

Centola, the Brazil-based Americas head of South Africa’s Standard Bank Group.

“There are clear opportunities for Brazilian companies issuing

bonds in South African rands,” he said.

– Reuters



Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.