Korea Pledges $14 Billion for African Investments at Inaugural Korea-Africa Summit

The summit was attended by 25 African heads of state and government, along with Dr. Akinwumi Adesina, President of the African Development Bank Group.


Devdiscourse News Desk | Nairobi | Updated: 05-06-2024 13:47 IST | Created: 05-06-2024 13:47 IST
Korea Pledges $14 Billion for African Investments at Inaugural Korea-Africa Summit
Image Credit: Twitter(@StateHouseKenya)
  • Country:
  • Kenya

The Republic of Korea has committed $14 billion in export financing to support Korean companies investing in Africa and plans to increase its official development assistance (ODA) to $10 billion by 2030. This announcement was made by President Yoon Suk Yeol on Tuesday in Seoul at the opening of the first Korea-Africa Summit. The summit was attended by 25 African heads of state and government, along with Dr. Akinwumi Adesina, President of the African Development Bank Group.

The summit, themed “The Future We Make Together: Shared Growth, Sustainability, and Solidarity,” saw representation from up to 48 African countries through presidents, kings, prime ministers, vice presidents, or ministers. Discussions centered on strengthening Korea-Africa cooperation, investment opportunities, and sustainable development.

President Yoon pledged that Korea would extend its Trade and Investment Promotion Frameworks and Investment Protection Agreements to African countries. African leaders praised Korea's approach to enhancing cooperation, highlighting investment opportunities across the continent.

Dr. Adesina called on Korea to rechannel Special Drawing Rights (SDRs) to the African Development Bank to support development financing. He noted that the IMF's approval of $20 billion in SDRs for hybrid capital could provide $80 billion in new financial support when channeled through the African Development Bank and other multilateral institutions. Adesina also urged Korea to contribute generously to the 17th replenishment of the African Development Fund and the Alliance for Green Infrastructure in Africa (AGIA).

The Korea-Africa Economic Cooperation (KOAFEC) Trust Fund, established by Korea in 2007 and managed by the African Development Bank, is the largest of the Bank’s 17 active bilateral trust funds. Adesina praised Korea's transformation from a poor, aid-dependent country to a major donor, highlighting its contributions of nearly $795 million to the Bank, the African Development Fund, and the Korea Trust Fund.

Rwanda’s President Paul Kagame and Tanzania’s President Dr. Samia Suluhu Hassan emphasized Korea’s model of rapid development and called for investment in sectors such as clean cooking to support the energy transition and reduce emissions. Kenya’s President William Ruto and other African leaders echoed the importance of innovative financial support through SDRs and praised the African Development Bank’s role in financing development projects.

President Yoon outlined Korea’s interests in supporting Africa through digitalization, e-government, education, capacity building, climate change mitigation, food security, and critical minerals. A Korea-Africa critical minerals dialogue is scheduled for later this year.

On the sidelines of the summit, the African Development Bank signed agreements with Korea Trade Insurance Corporation (K-SURE) and Korea Overseas Infrastructure and Urban Development Corporation (KIND) to further support infrastructure and urban development projects in Africa.

The summit marked a significant step in Korea-Africa relations, setting the stage for deeper cooperation and mutual growth, and underscoring Korea’s commitment to supporting Africa’s sustainable development.

 
 
4o
Give Feedback