Brazil and African countries have had trade relations since the end of the 20th century. The African Continent has 55 countries and not all countries participate in these trade relations. One of the most significant markets is South Africa, which has been part of the BRICS since 2011. The countries with the largest presence in Africa are China and India, followed by Russia and Brazil.
As in the Chinese case, the activities of Brazilian companies in African countries are also related to segments such as energy, minerals and civil construction, sectors that are booming in Brazil and other emerging nations, or even in underdeveloped countries that are undergoing some type of modernization. structural and economic.
In 2013, bilateral trade volume reached a record figure of US$ 28.533 billion, with Brazilian exports worth US$ 11.087 billion and African sales totaling US$ 17.446 billion. In 2017 it was just over US$ 14.924 billion. In 2018, raw cane sugar was the main product exported to African countries, followed by refined sugar, iron ores, beef and chicken meat. Despite the sharp drop in global exports from Africa to Brazil, oil shipments increased by 46.3% in the period January-May 2018. Exports also included naphtha, hard coal, urea and fertilizers.
Egypt is one of the main destinations. South Africa, Algeria, Nigeria and Morocco also stand out.
Portal Agrolink spoke with the president of the Brazil Africa Institute (IBRAF), João Bosco Monte, to understand the profile of agribusiness on the African Continent. On November 12th and 13th, IBRAF will promote the 7th Brazil Africa Forum, in São Paulo, with the theme Food Security.
Agrolink Portal: Africa joined Brics in 2011. How is the commercial relationship with Brazil in terms of agribusiness and what aspects of this relationship can still be expanded/explored?
João Bosco Monte: Portuguese-speaking countries, especially Mozambique and Angola, have an important relationship with Brazil. Infrastructure issues are a natural need for the continent and Brazil still has a lot to contribute in presenting answers for basic, but also general, infrastructure. Our country has already demonstrated that it can help in this work. Agriculture is certainly a good alternative for Brazil to expand its agenda with African countries. But in addition to technology transfer, improveable seeds, I think we can also offer solutions in Brazilian equipment and machinery. Chinese, European or American agricultural implements do not have the same “morphology” as Brazilian equipment, as the geography of these places is different, whereas Brazil looks a lot like Africa. Therefore, some responses that Brazil has already presented can easily be taken to the African continent. Agriculture is certainly the best we can present when comparing Brazil and the African continent.
We also have to remember the free trade agreement on the African continent, which should start in January. Looking at this new chapter in Africa, Brazil can present itself as a partner, whether in business initiatives or in investments and technology transfer.
Agrolink Portal: Much is said about Asia as a promising global market, especially in soy and meat (now a little shaken by swine fever). What is Africa's potential in the global economy?
João Bosco Monte: Africa has the most cultivated areas in the world, unlike Asia. Brazil has already shown that it is possible to diversify its commodities, and our similarities benefit it. Prognoses indicate that Africa will be the place where hunger can be minimized, as more food can be produced there than anywhere else on the planet, due to the abundance of land. There is plenty of water. It is possible to produce different crops, depending on each region of the continent. But compared to Asia, conditions in Africa are more favorable. Another aspect is that Africa can produce for itself, but it can also export. Many companies that already produce in other locations are beginning to look at this continent as a suitable place for production, as it has cheaper labor and an expanding consumer market. Nigeria, for example, could almost double its population by 2050.
Agrolink Portal: How does Africa observe agribusiness today?
João Bosco Monte: the perspective we have on agribusiness in Africa is different from Brazil. In the African context we do not have a production capacity similar to our country, as the concentration of land is largely in the hands of the State. The state owns most of the land, including arable land. So family farming is what maintains grain production. But this reality may change over time. There is a prospect that countries will modernize their legislation and I advocate that this happens soon, so that producers are interested in producing more. Agribusiness has the possibility of solving many of the problems on the African continent. Today, if it weren't for agribusiness, Brazil would not have a surplus. This could also happen with Africa. Whether for the domestic market or for export. On the other hand, there is a situation that the continent still experiences, which is the lack of a well-defined structure. There is no point in producing if there is nowhere to store what is made.
Source: agrolink
