Brazil has joined the Lusophone Compact, a major initiative aimed at accelerating private sector growth in Portuguese-speaking African countries. The move strengthens ties between Brazil and African nations, offering significant economic potential.
Signed in the capital Brasilia, the agreement reflects a desire for closer economic cooperation. “We need to work to strengthen economic ties through more investments, trade and cooperation,” said Brazil’s Minister of Planning and Budget, Simone Tebet.
The Lusophone Compact, launched in 2018, is a collaboration between the African Development Bank (AfDB), Portugal, and six African nations: Angola, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique, and São Tomé and Príncipe.
The AfDB President, Dr. Akinwumi Adesina, praised Brazil’s commitment, stating, “Your membership will further strengthen South-South Cooperation under the Compact… Brazil’s leadership in key sectors will bring much to the table.”
Adesina highlighted Brazil’s genuine commitment to Africa. “Brazil engages Africa with its heart. Brazil respects Africa, it shares with Africa and believes in Africa,” he said.
The Compact has already yielded results. Since 2019, the AfDB has approved $166.4 million for projects in energy, transportation, and business development across these African nations.
Examples include a €520 million corporate loan to Hidroeléctrica Cahora Bassa in Mozambique and a $10 million trade finance guarantee for Banco Fomento de Angola. Additionally, 2023 saw approval for blended finance projects supporting youth and women entrepreneurs in Guinea-Bissau and coastal infrastructure development in São Tomé and Príncipe.
