South Korea unveils $6 billion financial package for African nations at KOAFEC
Seoul, Sept. 13 (BNA): South Korea unveiled its plan to offer a $6 billion financial package to fund various projects in Africa.
The plan was included in the joint declaration announced by South Korea and Africa during the seventh Korea-Africa Economic Cooperation Ministerial Conference, which kicked off the previous day in the southeastern port city of Busan.
In the declaration, South Korea vowed to offer the financial package that will include $1.5 billion worth of low-interest loans from the Economic Development Cooperation Fund (EDCF), as well as $4.3 billion worth of export finance from the Export-Import Bank of Korea.
South Korea launched the EDCF programme in 1987 in an effort to help other developing countries with their basic infrastructure facilities.
"Korea is committed to sharing Korea's experience and know-how gained through the process of economic growth, including knowledge and capacity building, and Korea will actively contribute to strengthening public-private capacity in Africa," the declaration said, according to Yonhap.
The fund will be spent on energy transition, agricultural and education projects. South Korea and Africa will make joint efforts to select detailed projects through 2025.
"The parties understand that sharing Korea's development experience can play a critical role in helping African countries promote economic development to eradicate poverty through energy transition and agricultural transformation," the declaration said.
"Going forward, the parties expect that with Africa's endless growth potential based on its growth-friendly demographics, endowment of mineral resources, and renewable energy potential, Africa will play a crucial role in global growth," it added.
South Korea also vowed to expand support for "technologies and human resource development needed for Africa's energy transition and agricultural transformation."
On the margins of the event, Finance Minister Choo Kyung-ho and Akinwumi Adesina, who heads the African Development Bank (AfDB), held a signing ceremony on South Korea's plan to expand its commitment to the regional bank.
Under the plan, South Korea will provide an additional batch of $24 million to the AfDB from 2024 to 2025.
South Korea also signed a double taxation avoidance agreement with Rwanda.
