Brazil Cancels Nearly $900 Mil in African Debt
Brazil’s President Dilma Rousseff recently announced that her country would offer several African nations almost a billion dollars in foreign aid. According to Ms. Rousseff’s spokesman, most of the aid offered will be in the form of debt forgiveness: Brazil will cancel almost $900 million in African debt accumulated in the past 40 years.
Over the last ten years, Brazil‘s trade with Africa has increased fivefold, though the country’s increasing investment in Africa has not always been positively received. Mining operations in Mozambique by Brazilian MNC Vale and Australian Rio Tinto were blocked in April when community members displaced by the companies staged protests.
The debt forgiveness offer shows Brazil‘s increasing ties with Africa, in no small part due to the continent’s rich supply of natural resources. “To maintain a special relationship with Africa is strategic for Brazil‘s foreign policy,” Ms. Rousseff’s spokesman told reporters.
Countries benefiting from this cancellation include Congo-Brazzaville, Mozambique, Tanzania, and Zambia. These countries have rich resources of oil, coal, and natural gas, each reason for further economic development in Africa.
– Naomi Doraisamy