Angola Joins Brazil in Lucrative Investment Agreement
The Brazilian Head of Diplomacy, Carlos Alberto Franca, recently visited Luanda, Angola. Franca visited in order to meet with the Angola-Brazil bilateral commission that serves to strengthen the ties between the two countries.
During his visit, it was revealed that Brazil would funnel $1.8 billion into new and existing investments in the southern African country. The investments would be in several fields including energy, agriculture, pharmaceutical, construction, and tourism.
The projects that will see this investment money include the Cabinda oil refinery, the Barra do Dande port terminal in Bengo Province, as well as the development of a drug factory in the Special Economic Zone.
Agricultural projects will see the growth of rice, corn, and beans in collaborations between Angolan and Brazilian companies. “The grain productivity in Brazil is far superior to that of countries such as the United States, for example, and so that we can grow together with Africa.
We would start with Angola and apply these conditions that allowed Brazil to expand agricultural production,” said Carlos Alberto Franco.
There will also be irrigation projects facilitated in certain areas, especially those that suffer from droughts such as the Cunene Valley.
“The idea is, through cooperation, to help the Angolan government to carry out the economic development of the Cunene Valley, as was done in the Sao Francisco Valley, especially because the geographical similarities are great,” said Rafael Vidal, who is the Brazilian ambassador to Angola.
The tourism industry in Angola will also see some investment in tourism. “We are proposing to the Angolan government a very creative and innovative partnership, which is an investment in sustainable tourism, involving know-how and capital from Brazilian companies, in concession areas, on the coast,” said Vidal.
More Insights on Angola’s Lucrative Investment Agreement…
The tourism developments would see projects that have to do with environmental management such as water and waste treatment, waste recycling, urban rehabilitation, and water desalination.
Angola is located in southern Africa and has recently formed many positive economic relationships. It is the second-largest producer of oil on the continent. This makes it a possible strategic partner for the supply of oil.
The fact that the country has oil deposits led to the signing of new oil supply deals with Italy. In April 2022, Angola and Italy signed a deal that would see an increase in the supply of oil to the European country.
“Today we have reached another important agreement with Angola to increase gas supplies,” Foreign Minister Luigi Di Maio said in a statement.
“Italy’s commitment to differentiate energy supply sources is confirmed,” said Di Maio at the end of a visit to Luanda.
The Prime Minister of Italy, Mario Draghi, has spoken of how he wants his country to move away from Russian dependence with regard to the supply of oil. Draghi wants Italy to build an oil supply relationship with Angola and the Republic of Congo.
“We do not want to depend on Russian gas any longer, because economic dependence must not become political subjection,” he said in an interview. “Diversification is possible and can be implemented in a relatively short amount of time — quicker than we imagined just a month ago,” he said.
Roberto Cingolani, the Italian Minister of Ecological Transition, traveled to Angola in place of Prime Minister Draghi. He called the deal “an important agreement that gives impetus to the partnership between Italy and Angola in the fields of renewables, biofuels, LNG (liquefied natural gas), and training in technology and environment”.
