Brazilian capital goods being pushed to Africa?

The Lula-era decision to push very hard on a South-South reorientation of economic geography and to support this through a massive expansion of Brazil’s diplomatic presence in Africa and Latin America is increasingly turning to the applied economic front. O Estado de São Paulo is reporting that the state-run National Bank for Economic and Social Development (BNDES) has just signed an agreement that will see Bradesco manage a US$200 million export-financing line of credit designed to help sell Brazilian capital goods in Africa and Latin America. While not a free ride for the importing countries, chances are the rates offered through the Bradesco facility will be slightly more attractive than found elsewhere and the credit easier to obtain, all of which may help gain new market share for Brazilian firms. The next question is if this will be enough to drive a surge in value-added exports in competition with suppliers such as China and India, and slow the pace of deindustrialization in Brazil.

–Sean Burges

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Filed under Brazil, News brief

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