BRICS in Brazil: collective efforts towards sustainable economic development and innovation

Brazil hosted the 11th BRICS Summit, in Brasilia, 13-14 November, and Vale was an active participant. It was one of the five official private sector companies to represent Brazil in BRICS Business Council, and was also present at the BRICS Business Forum, an official event of the Summit attended by all five Heads of State. On the sidelines of the Summit Vale leaders participated in a meeting of the Brazil China Business Council, itself a key platform for private-sector economic collaboration between the two nations.

BRICS is a multi-lateral framework that convenes five major emerging countries - Brazil, Russia, India, China and South Africa - who together account for 42% of the world’s population, 23% of its GDP, 30% of its landmass and 18% of global trade. For Brazil, 2019 was an important year in BRICS, serving as its pro tempore; a one-year presidency term which rotates among the member-states. Guided by the theme of “Economic Growth for an Innovative Future,” Brazil’s BRICS leadership has emphasized the promotion of science, technology, and innovation; the evolution of the digital economy; and the strengthening of new avenues for the funding of large-scale projects.

Regarding new avenues of funding, Vale has increased its collaboration with entities related to BRICS. The BRICS’s own New Development Bank (NDB) will partner with Vale through a USD 300 million loan to support the North Region Transportation Infrastructure Improvement Project. Concentrated in the northern Brazil states of Pará and Maranhão, this project aims to enhance Vale’s railway and port capacity; its impacts will include world-class labor and safety standards and downstream economic activity spurred by construction and maintenance activities. In addition, Vale and the Industrial and Commercial Bank of China (ICBC) have signed a Memorandum of Understanding for cooperation on global financing arrangements. With an aggregate limit of up to USD 3 billion, this partnership will provide a strategic avenue of funding to enable long-term investments, and the economic benefits which are accrued through project implementation activities on a local level.

Vale supports the collective efforts towards sustainable economic development and innovation that are bolstered by BRICS.