SA, Brazil mull cooperation on aerospace, agriculture, health and energy

24 July 2010, Engineering News
URL: http://www.engineeringnews.co.za/article/south-africa-and-brazil-seek-cooperation-2010-07-23

By: Keith Campbell

Aerospace, agriculture, health, nuclear energy and shipbuilding were all sectors highlighted for cooperation between South Africa and Brazil during the recent visit to this country by Brazilian President Luiz Inácio Lula da Silva. Few details were, however, released.

Addressing a South Africa-Brazil Business Forum, in Sandton, north of Johannesburg, on July 9, South African Trade and Industry Minister Dr Rob Davies reported that the two sides “had some fruitful discussions on cooperation in aerospace”. He continued that South Africa was interested in such cooperation with Brazil but that the South African government had processes that had to be followed before any decision could be taken. “We undertook to get back [to the Brazilians] as quickly as possible.”

Brazil is known to have put South Africa on the list of countries it wants as strategic partners in the Embraer KC-390 military transport and air-to-air refuelling aircraft programme. Indeed, Lula da Silva made explicit reference to this at a joint press conference with President Jacob Zuma earlier that day. Lula da Silva also stated that Brazil was looking at South African unmanned air vehicles.

Addressing the forum, Zuma – who referred to Lula da Silva as “my friend and my brother” – said: “We have mechanisms to develop cooperation. A memorandum of understanding was signed in 2009 between the Department of Trade and Industry and the Brazilian Ministry of Development, Industry and Foreign Trade.

“It is vital that we give attention to the creation of partnerships.” Zuma cited the need to “strengthen our shipbuilding industries, to lessen our dependence on foreign vessels for trade” across the South Atlantic.

He also highlighted health as an area of future cooperation, including the provision of universal healthcare (Brazil has a universal healthcare system), the financing of healthcare and the joint production of pharmaceuticals, for both domestic markets and for third country markets.

“We want to follow Brazil’s example of using education to drive social and economic development,” stated Zuma. “Cooperation with Brazil in nuclear and renewable energy is also a priority for South Africa.”

In his address to the Business Forum, Lula da Silva – who described Zuma as “my brother, my comrade” – said: “What we need is to get to know the potential of each of our capabilities. We could manufacture helicopters in partnership with South Africa. We could manufacture cargo aircraft.

“South Africa has very sophisticated agriculture,” he added, predicting an agricultural revolution in Africa, in general, over the next 15 years. Lula da Silva also strongly advocated the production of sugar cane-based ethanol across the continent, asserting that developed countries could, in future, buy biofuels from Africa. “Let’s show the potential for development that Africa has,” he urged.

Trade was also touched on. “We firmly believe that there is great potential to significantly expand the scope of South- South trade,” averred Zuma. “Brazil is a key partner in this regard. It is very clear to us in South Africa that deepening South-South trade and economic cooperation is not just a ‘nice to have’ but an imperative,” said Davies.

Regarding bilateral trade, Zuma pointed out that it had grown steadily from 2005 to 2009.

“Foreign trade between Brazil and South Africa has once again started to grow,” cited Brazilian Development, Industry and Foreign Trade Vice-Minister Ivan Ramalho.

“In the first semester of this year, Brazil’s imports from South Africa grew by 70%.” Although the terms of trade remain in Brazil’s favour, the gap is narrowing and is expected to be significantly reduced by the end of the year. While Brazil wants to increase its exports, Ramalho gave the assurance that the country desired balanced trade and so also sought to increase its imports.