Development banks announce US$10 bn to invest in South American integration

Four development banks are set to invest approximately $10 billion in South American integration projects. The institutions participating in this initiative are the Brazilian Development Bank (BNDES), the Development Bank of Latin America (CAF), the Inter-American Development Bank (IDB), and the Financial Fund for the Development of the La Plata Basin (Fonplata).

The announcement was made on Thursday (7) during the Mercosur Summit at the Museum of Tomorrow in Rio de Janeiro. The “Routes for Integration” initiative envisions creating at least five connectivity networks across the continent to enhance infrastructure, trade, and strategic cooperation in the region.

The event was attended by President Luiz Inácio Lula da Silva, the presidents of Bolivia, Luis Arce, and Paraguay, Santiago Peña, as well as the leaders of the development banks, and the ministers Mauro Vieira (Foreign Affairs), Márcio Macêdo (Presidential Secretariat), and Simone Tebet (Planning).

The main routes identified so far are Guiana Island (north of Brazil with Guyana, French Guiana, Suriname, and Venezuela); Manta-Manaus (north of Brazil with Colombia, Ecuador, and Peru); Quadrante Rondon (Acre, Mato Grosso, Rondônia, Bolivia, and Peru); Capricorn (Mato Grosso do Sul, Paraná, Santa Catarina, Argentina, Chile, and Paraguay); and Porto-Alegre-Coquimbo (Rio Grande do Sul, Argentina, Chile, and Uruguay).

“For five months, we listened to all bordering states of Brazil, the secretaries of finance, labor, culture, and planning. We spoke with ministers from neighboring countries. And they were unanimous. From there, we reached a new integration pact. There is a real possibility of establishing these routes by 2026. All routes on the Brazilian side already have secured funding. We have already identified at least 124 projects related to these routes that are part of Brazil’s Growth Acceleration Program,” said Tebet.

According to BNDES President Aloizio Mercadante, considering Brazil’s relations with its neighbors and the volume of business, the most logical path for the continent is to invest efforts and resources in joint development.

“Brazil’s exports to South America are $35.2 billion. To the United States, they are $28.7 billion,” explained Mercadante. “Therefore, it makes complete sense for us to have more logistics, roads, railways, bridges, energy integration, fiber optics, services, tourism, employment, and income. The more united South America is, the more diplomatic strength we will have to intervene in international forums.”

Source: Agência Brasil

Click here to read the original news report: https://agenciabrasil.ebc.com.br/economia/noticia/2023-12/bancos-de-fomento-anunciam-us-10-bilhoes-para-integrar-america-do-sul

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