Brazil expands Angolan credit line to $1.3 billion; targets expansion of biofuels trade

Brazil doubled a $1.3 billion credit line for Angola as a step in the expansion of Angolan-Brazilian trade. The credit line was announced by Brazilian President Luiz Inacio Lula da Silva in Luanda, on the last leg of a four-country African visit this past week. Angola, which concluded a 27-year civil war in 2002, has been helped by an oil boom, but is seeking to expand its biofuels infrastructure to take advantage of good land for biofuel feedstock cultivation. But transport infrastructure will need to be repaired folloing the devastation of the civil war period.

The prospect of free elections and increased stability in the country has increased foreign direct investment in the country, particularly from Brazil. Angolan exports to $460 million in goods and services to Brazil, and Angola is Brazil’s fourth-largest African export partner.

Angolan president Jose Eduardo dos Santos has targeted biofuels as a vehicle for economic development.
“The production of these bio-fuels will enable to contribute for the economic development of several regions in the country, since it is possible to explore the best alternatives in the raw materials existing in each region,” he said last week.

This month, Angolan and Brazilian companies Oldebrecht, Sonangol and Damers formed the Biocom joint venture to produce ethanol, electricity in Angola

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