One of the key goals of the cooperation is to strengthen and improve economic ties. Some of the areas which these "southern" nations look forward to improving further include joint investment in energy and oil, and a common bank. Among other regional trade agreements which were reached during the 2009 summit was Venezuela signing an oil agreement with South Africa and a memorandum of understanding with Sierra Leone to form a joint mining company. Meanwhile, Brazil has developed an increasingly successful model of
overseas aid provision of over $1 billion annually (ahead of many traditional donors), which focuses on technical expertise and the transfer of knowledge and expertise. Most of Brazilian aid is allocated to
Africa, specifically to
Portuguese-speaking African countries, and
Latin America. Brazil's form of South–South development aid has been called a "global model in waiting". The two continents have over one quarter of the world's energy resources. This includes the oil and natural gas reserves in Bolivia, Brazil, Ecuador, Venezuela, Algeria, Angola, Libya, Nigeria, Chad, Gabon and Equatorial Guinea.
Banks to finance infrastructure projects One challenge for South–South cooperation has been the lack of sufficient capital to start a South–South bank as an alternative to the
International Monetary Fund (IMF) and the
World Bank. This has changed with the launch of two new "South–South banks". At the sixth summit of the
BRICS countries (Brazil, Russian Federation, India, China and South Africa), in July 2014, the five partners approved the establishment of the
New Development Bank (or BRICS Development Bank), with a primary focus on lending for infrastructure projects. It will be based in Shanghai. A Contingency Reserve Agreement (CRA) has been concluded in parallel to provide the BRICS countries with alternatives to the World Bank and IMF in times of economic hardship, protect their national economies and strengthen their global position. The Russian Federation is contributing US$18 billion to the CRA, which will be credited by the five partners with a total of over US$100 billion. The CRA is now operational. In 2015 and 2016, work was underway to develop financing mechanisms for innovative projects with the new bank's resources. The second new bank is the
Asian Infrastructure Investment Bank. It has also been set up to finance infrastructure projects. Spearheaded by China, the bank is based in Beijing. By 2016, more than 50 countries had expressed interest in joining, including a number of developed countries: France, Germany, the Republic of Korea, United Kingdom, etc.
Asia–Pacific Free Trade Area China is spearheading the creation of
an Asia–Pacific Free Trade Area, which, according to China's vision, would override existing
bilateral and
multilateral free trade agreements in the region. The
Asia-Pacific Economic Cooperation summit in November 2014 endorsed the
Beijing Roadmap for completing a feasibility study by late 2016. From 1990 to 2018, Chinese enterprises established eleven
SEZs in sub-Saharan Africa and the Middle East including: Nigeria (two), Zambia, Djibouti, Kenya, Mauritius, Mauritania, Egypt, Oman, and Algeria. Generally, the Chinese government takes a hands-off approach, leaving it to Chinese enterprises to work to establish such zones (although it does provide support in the form of grants, loans, and subsidies, including support via the
China Africa Development Fund).
South–South cooperation in agriculture In light of its ideological commitment to South–South cooperation (and motivated by a pragmatic desire to increase
food security), China has established a series of Agricultural Technology Demonstration Centers in Africa. These are a highly visible component of agricultural cooperation between China and African countries. The function of these centers is to transmit agricultural expertise and technology from China to developing countries in Africa while also creating market opportunities for Chinese companies in the agricultural sector. == South–South cooperation in science ==