Seven agreements and one partnership on ethanol mark Brazilian president’s visit to Angola

10 October 2007

Brasilia, Brazil, 10 Oct – Seven agreements between the governments of Brazil and Angola and one partnership in the area of biofuels will be signed during a visit by President Luiz Inácio Lula da Silva to Luanda in the middle of this month.

Luciano Maceira, head of the Africa II Department (DAF II) of the Foreign Affairs Ministry (Itamaraty), told Portuguese news agency Lusa that there was a market in Angola both for oil and biofuels and the government of this Portuguese-speaking African country wants to diversify its sources of energy.

The development of the sugar alcohol sector is interesting to Angola not only because of ethanol, but also due to the possibility of increasing sugar production.

Last year, for example, Angola bought US$94 million of sugar, the second most important article on the list of Brazilian exports to the country, after cars.

Macieira declined to give the names of the companies involved in the deals and said only that they involved an Angolan state company and a private Brazilian company.

Petrobras, according to Macieira, will be represented in the business delegation that is to accompany Lula da Silva with the aim of increasing its activities in Angola in the oil sector.

The seven agreements to be signed by the governments of Luanda and Brasilia during the visit by Lula da Silva on 18 and 19 October, will be in the areas of education, prevention and control of malaria, professional and scientific training, political consultation mechanisms and diplomatic cooperation.

operate in Angola, including oil giant Petrobras, mining company Companhia do Vale do Rio Doce, Odebrecht, Andrade Gutierrez and Furnas.

“Angola is the African country with the highest number of Brazilian companies,” said Macieira, adding that Brazilian investments in the country totaled US$400 million.

In the last few year, trade between Brazil and Angola has risen significantly and, last year totaled US$1.297 billion.

Brazil buys crude oil from Angola, with which the African country guarantees the credit lines from the Brazilian government, which finance products and services.

The latest credit line due to mature in 2008, to the value of US$750 million, has almost been entirely used and Angola has begun negotiations to renew it.

Around 30 businesspeople are expected to be part of the delegation accompanying the Brazilian president on his trip to the African continent, which will also include visits to Burkina Faso, the Republic of the Congo and South Africa. (macauhub)