Brazil’s government plans to invest in Bolivia’s petrochemical plants, with the main goal of creating a stable fertilizer market, according to Bolivia’s energy minister.
Franklin Molina Ortiz said the countries will work together on specific projects. These plans come from high-level talks about how to pay for the investments.
The talks followed earlier meetings with Brazilian leaders.
Brazil has a large economy with high demand for fertilizers. This makes Bolivia an attractive partner.
Ortiz highlighted Mato Grosso, a border region, as a key area connected to an export gas line.
Brazil currently imports 90% of its urea, a type of fertilizer, from other countries. Much of this urea comes from Bolivia.
Around 80% of Bolivia’s Ammonia and Urea Plant exports go to Brazil, a big global buyer.
Brazil aims to secure a steady supply of urea and might invest in new plants like Bolivia’s.
The country is also interested in Bolivia’s other chemical products. These include potassium chloride and outputs from Bolivia’s NPK plant in Cochabamba.
Ortiz believes the talks with Brazil open up good trade chances for both nations. Bolivia could gain through more exports.
Brazil could get the key inputs it needs for farming at good prices.
Regional teamwork
This Brazil-Bolivia deal shows a bigger trend of regional teamwork and shared investment.
Both nations could grow their chemical sectors and boost their economies by working together.
In the end, Brazil’s planned investment offers benefits for both countries. It can create jobs and spur economic growth in Bolivia.
At the same time, Brazil could get a stable, quality fertilizer supply for its expanding farms.