Andre Esteves, owner of the Brazilian investment bank BTG Pactual, has announced plans to launch the biggest private equity fund focused on the African continent. The fund plans to raise $1bn to be invested in sectors such as energy and infrastructure. It remains to be seen whether it will invest broadly, or whether there will be a noticeable bias towards Portuguese speaking Africa, mainly Angola, Mozambique and Guinea-Bissau. To date, Mozambique has attracted the most Brazilian investment.
The fund has been hailed as a crucial development in strengthening south-south economic ties, particularly between Brazil and Africa.It comes amidst a spate of pronouncements by Brazilian politicians and leaders, including former president Lula, on the importance of strategic relations between Brazil and Africa.