SA and Brazilian DFI’s announce co-operation pact
Posted on 05. Aug, 2009 by admin in Business-Financial Results, News-Chemical
The Industrial Development Corporation (IDC) today announced that it has entered into a co-operation agreement with the Brazilian Development Bank, Banco Nacional de Desenvolvimento Econômico e Social (BNDES), which will lead to regular technical cooperation, joint product design and co-financing activities between the two development finance institutions.
The cooperation will focus on the following outputs: industrial strategy formulation, financial product and policy development, joint financing of projects on the African continent, as well as strengthening trade and economic relations between South Africa and Brazil; subject to the respective mandates of both institutions.
The agreement is the culmination of a four-year informal, information sharing relationship between the two institutions.
In terms of the agreement, the IDC and BNDES will exchange information on projects of potential common interest, with special focus on:
· automotive and components,
· alternative-fuelled vehicles;
· aeronautics and components;
· energy generation, particularly renewable/clean energy and co-generation;
· food processing and other agro-industries;
· pharmaceuticals; and
· mineral resource beneficiation.
These are in line with the IDC’s support of South Africa’s National Industrial Policy Framework and Industrial Policy Action Plans, which are aimed at supporting capital/ transport equipment and metals fabrication; motor vehicles components and accessories; chemicals plastics and pharmaceuticals; forestry, pulp, paper and furniture; among others. The cooperation agreement also supports the IDC’s objectives of developing new industries, supporting innovation in existing industries, the creation of more competitive industries, and accessing new markets.
Commenting on the agreement the IDC’s chief economist, Lumkile Mondi said “The depth and breadth of BNDES’ activities means that it gathers considerable information, experience and expertise. I think an exchange of ideas will be valuable to us in terms of improving the IDC’s evolution of risk management (capital management and investment risk), sector strategies and information gathering and coordination activities between public and private sectors.”
BNDES’ Deputy Director for International Development, Maria Isabel Aboim said: ”There are a number of structural similarities between the two economies, including distortive economic inequalities, which should mean information sharing and product development cooperation will be quite beneficial. Aside from the technical benefits of the relationship, the cooperation agreement is aimed at strengthening ties between the two institutions and building business and economic links between South Africa and Brazil.”