Statement Delivered by Dr. Akinwumi A. Adesina President, African Development Bank Group - Signing Ceremony of Brazil’s Accession to the Lusophone Compact - 22 April 2024 - Brasilia, Brazil

Her Excellency, Simone Tibet, Minister of Planning and Budget and Brazil’s Governor to the Africa Development Bank Group, and our host,

H.E. Luis Filipe Melo e Faro Ramos, the Ambassador of Portugal,

H.E. Jacinto Januario Maguni, Ambassador of Mozambique,

H.E. Jose Pedro Chantre D’Oliveira, Ambassador of Cabo Verde,

Vice President of the African Development Bank, Marie-Laure Akin-Olugbade and all staff of the Bank in my delegation,

Senior government officials,

Distinguished Ladies and Gentlemen,

Boa tarde!

I am delighted to be back again in Brazil. On the behalf of the delegation accompanying me from the African Development Bank, I would like to express immense gratitude to H.E. President Lula for kindly inviting me to visit Brazil.

I love Brazil, its people, its culture, its dynamism, its exemplary global leadership in driving development, which is evident with its being the presidency of the G20.

We are all excited that “Brazil is back!”

I wish to thank you Minister Tibet for hosting this remarkable Signing Ceremony of Brazil’s accession to the Development Finance for Portuguese-Speaking Countries of Africa—The Lusophone Compact between the Africa Development Bank, Angola, Cabo Verde, Equatorial Guinea, Guinea-Bissau, Mozambique, Portugal, and São Tomé and Príncipe and now Brazil.

On behalf of all the founding members, we are delighted to finally welcome Brazil to the Lusophone Compact. BEM-VINDO!

Distinguished Ladies and Gentlemen,

This auspicious occasion marks a critical milestone for the Lusophone Compact Initiative and the Africa Development Bank in our effort to spur bold private sector development in Africa, particularly in the Portuguese-speaking countries of Africa or together known by the acronym PALOP (Países Africanos de Língua Oficial Portuguesa).

It also serves as evidence of the African Development Bank’s and Brazil’s long-standing, forward-thinking bilateral relationship, and cooperation, leveraging the existing cultural, social, historical and economic ties among the Lusophone Compact member countries.

The Lusophone Compact was established in 2018 after the signing of a Memorandum of Understanding between the African Development Bank Group and the Government of Portugal, and the six Portuguese-speaking countries of Africa (PALOPs).

The goal is to expand private sector investments in the PALOP countries to accelerate economic growth, competitiveness and the creation of jobs.

The Government of Portugal provided a guarantee facility of EUR 400 million to de-risk investments of the private sector in the PALOP countries.

The Lusophone Compact has been instrumental in supporting the African Development Bank to increase its non-sovereign investments in the PALOP countries.

In 2021, $15 million was approved for São Tomé and Príncipe to support the implementation of policies to foster better environment for private sector through the establishment of an investment vehicle.

In 2022, the African Development Bank approved two non-sovereign operations in Mozambique and Angola: a corporate loan of EUR 520 million to the Hidroelectrica Cahora Basa hydroelectricity company of Mozambique, of which the Bank provided EUR 100 million, and a $10 million trade finance transaction guarantee to Banco Fomento de Angola (BSA) S.A.

In 2023, two blended finance private sector projects were financed, including $12.35 million for youth and women entrepreneurship and small and medium-size development Lusophone facility in Guinea-Bissau; and $20.13 million for “Building Coastal Infrastructure Connectivity and Blue Enterprises in São Tomé and Príncipe.

And in 2024, a $40 million corporate loan to Caminhos de Ferro de Mozambique (CFM) was approved.

Several other projects are in the pipeline for expected approval in 2024, including $160 million Kassinga Steel Mine Project in Angola; $43 million Wind Energy Expansion Project in Cabo Verde; $220 million for the Namaacha 120MW wind farm and $50 million line of credit for the BCI, both in Mozambique.

Other partners have joined the Lusophone Compact, including the International Finance Corporation and the Africa Trade Investment Development Insurance.

I am delighted that Brazil is signing up to join the Lusophone Compact.

Your membership will further strengthen the South-South Cooperation under the Compact. Your joining the Lusophone compact is a further testament to Brazil’s strategy to deepen economic and political ties with African countries.

As the largest economy among the Community of Portuguese Language Countries (CPLP), Brazil’s leadership in agriculture, energy, health, industrialization and private sector development will bring much to the Lusophone Compact.

One of the key pillars of President Lula’s government is to diversify Brazil’s exports through trade and investment. Investment opportunities abound in Africa, and in the PALOP countries in Africa.

Brazil can help energize the Lusophone Compact through deployment of complementary instruments to mobilize private capital, including trade risk mitigation instruments such as Export Guarantee Fund and Export Credit Insurance, and trade finance instruments such as the Export Financing Program.

From the African Development Bank Group, we will be keen to source Brazilian-led transactions and investments in PALOP countries, that can benefit from the African Development Bank’s non-sovereign window and Brazilian financial institutions, including institutional investors.

I would like to thank Brazil for its grant contribution of $1 million to the Lusophone Compact Trust Fund, which will support technical assistance, advisory services and capacity building of private sector entities for project preparation and bankability. In return Brazil will be able to have access to pipeline of private sector projects at a developmental stage that could attract investments from the Brazilian private sector.

Brazil could also lead on joint-investor outreach activities into PALOP countries, using the Brazil-Africa Forum and through the Africa Investment Forum, organized annually by the African Development Bank and its partners.

Since Brazil is back, we want Brazil in the Lusophone Compact with a big bang!

To further accelerate Brazil’s support to the private sector in the PALOP countries, to achieve the goals set by the PALOP countries under the Lusophone Compact, Brazil could consider establishing a dedicated Brazil-backed guarantee to the African Development Bank, to match the EUR 400 million guarantee of Portugal. This would bring total Lusophone Compact guarantee to leverage private sector to EUR 800 million for the Lusophone Compact Countries. This could potentially be announced by President Lula at the G20 Summit in May, 2024. It would be a great development for the PALOP countries. If this is done, you can be sure to hear from the halls of the Summit, Viva! Viva!

You can count on the full support of the African Development Bank to work with Brazil, Portugal and all the members of the Lusophone Compact to accelerate the economic growth and development of the PALOP countries.

Together, we will do more!

 So, welcome Brazil!

Thank you!

Obrigado a todos!