Brazil’s state-controlled Banco de Brazil and its rival Bradesco have agreed to acquire stakes in BES Africa, a Banco Espirito Santo (BES) holding company that makes investments in the African continent. The joint venture is intended to expand the Brazilian banks’ international operations and benefit Brazilian businesses operating in Africa.
The move follows similar steps taken by China over the past few years to increase the presence of its financial firms in the African continent as a means of building soft-power in the region and securing the long-term growth of the African market and the Chinese firms positioned to benefit from it. As The Economist reported last month, the drastic upsurge in Brazil’s distribution of aid and money to Africa over the past decade reflects Brazil’s growing interests in Africa’s resources, economic development, and growing consumer base. The direct participation of some of Brazil’s largest commercial banks in the African continent will further the Brazilian state’s goals of strengthening domestic multinational firms and establishing new markets for Brazilian goods.
In Monday’s press conference Brazil’s finance minister Guido Mantega – along with the CEOs of Bradesco, Banco do Brasil and Banco Espirito Santo – announced their plans to build on BES’ existing network of branches in the region and use their combined financial clout to fund larger acquisitions. Minister Mantega also announced that the new entity would not only do business in Portuguese-speaking African countries such as Angola, Mozambique and Cape Verde, but invest in non-Portuguese speaking countries as well, including South Africa, Algeria and Morocco.
According to the filing “The three financial firms consider an eventual partnership as an important means to support the overseas move by Brazilian and Portuguese companies and to assist with the growing trade relations” with Africa.
(Photo by Flickr user Gregorius Mundus)
A few months ago, I wrote about the early stages of the conflict in Ukraine through the lens of Sun Tzu’s The Art of War. While it appears likely that the war will carry on into the foreseeable future, enough time has passed for us to make an honest assessment of each side’s relative […]
The Ukrainian Army has made dramatic strides in the last few weeks. Ukraine’s tactical commanders have outfoxed their Russian counterparts, and by issuing a feint towards the south the UA has been able to earn substantial gains in the north of their country. The impact of these efforts have been compounded by the steady stream […]
In mid-May the Irish political party, Sinn Féin, won the plurality of seats in the Northern Ireland Assembly. Many American readers might not fully understand the significance of Sinn Féin’s political victory- but rest assured that subjects of the United Kingdom and a wide range of political movements the world over have heard the message […]
The first wave of the Russian offensive in Ukraine has fallen short of Russian autocrat Vladmir Putin’s ambitions. Most analysts deduced that Putin had hoped to achieve a decapitation strike of the Ukrainian government- taking Kiev and replacing Ukrainian President Vladimir Zolinski with a pro-Kremlin voice. Kiev has been threatened repeatedly through the course of […]
On the weekend of March 26th, the notorious MS-13 gang went on a massive killing spree in El Salvador which left more than 70 people dead by Sunday. Even for a country where powerful gangs hold massive sway, this recent tragedy stands out considering that it was the bloodiest day on record since the civil […]
