Brazil-Malawi Cooperation and Investment Facilitation Agreement (CIFA) – Brasilia, June 25, 2015

The Minister of Foreign Affairs, Ambassador Mauro Vieira signs today, June 25, at Itamaraty Palace, with the Ambassador of the Republic of Malawi, Mr. Edward  Y. Sawerengera, the Agreement on Cooperation and Facilitation of Investments (CIFA) between Brazil and Malawi, with the presence of the Executive Secretary of the Ministry of Development, Industry and Foreign Trade, Ivan Ramalho.

This is the fourth Agreement signed on the basis of the new Brazilian model of investment agreements, prepared by the Foreign Ministry, the Ministry of Development, Industry and Foreign Trade, the Ministry of Finance and the Executive Secretariat of CAMEX, in consultation with the private sector. The CIFA model reflects the concerns of the business community to rely on legal instrument to minimize risks and prevent conflicts about investments.

The CIFAs seek to encourage mutual investments through intergovernmental dialogue mechanism, supporting companies in the process of internationalization. Through the CIFA, there will be greater disclosure of business opportunities, exchange of information on regulatory frameworks and appropriate mechanism to prevent and, eventually, dispute settlement. The model provides a solid framework for investment on both sides.

Brazilian companies participate in an infrastructure project of great importance that crosses Malawi and Mozambique. The design of the Nacala Development Corridor involves the construction of a railway line that will link the Moatize coal mine to the Bay of Nacala, where a deep-water seaport will be built. The railway connection will cross Malawi and is expected to carry 18 million tons of coal per year. The project comprises the rehabilitation of existing railways and the construction of new sections. The total value of investments in logistics is estimated at $ 4.4 billion.

Brazil is engaged in CIFAs negotiations with the following countries: South Africa, Algeria, Chile, Colombia, Morocco, Peru, and Tunisia. The agreement has already been signed with Mozambique, Angola, Mexico and now with Malawi.