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The Brazil-Mozambique Cooperation and Investment Facilitation Agreement (CIFA) was signed today in Maputo. The event was attended, on the Brazilian side, by the Minister of Foreign Affairs, Mauro Vieira, and the Minister of Development, Industry and Foreign Trade, Armando Queiroz Monteiro Neto.

The Cooperation and Investment faclitation Agrement between Brazil and Mozambique is the first treaty signed on the basis of the new Brazilian model for investment agreements, prepared by the Ministry of Foreign Affairs, the Ministry of Development, Industry and Foreign Trade and the Ministry of Finance in consultation with the private sector.

The Memorandum to Promote Investment was also signed in Maputo. It creates a bilateral working group, comprising representatives from the government and the private sector. The Working Group will initiate internacionalization projects focused on industrial cooperation. Given that the CIFA still has to be approved by the Congress, the Brazilian government anticipates the long-term partnership with the government of Mozambique, aimed at diversifying the Brazilian business presence in the country, stimulating exports, and promoting integration between the two countries’ productive sectors.

Brazilian investment in Mozambique, either planned or implemented, go beyond $ 9.5 billion. The main Brazilian projects in the country are related to mining, energy and civil construction. There is also significant potential for growth of Brazilian investment in agriculture.

The CIFA signed with Mozambique represents a new kind of agreement, seeking to encourage reciprocal investment through intergovernmental dialogue, and supporting companies in the internationalization process. Through the CIFA, business opportunities will be publicized more widely, information will be exchanged regarding regulatory frameworks, and there will be an appropriate mechanism to prevent or, if necessary, resolve disputes. The new model provides a solid framework for two-way investment.

Inter-ministerial missions to negotiate CIFAs have so far taken place with South Africa, Angola, Algeria, Malawi, Morocco, Mozambique and Tunisia. Negotaiations with Mozambique and Malawi have already been concluded, and those with Angola are at an advanced stage. South American countries have also indicated their interest in starting similar negotiations.

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