The Republic of Korea has committed to providing $14 billion in export financing to support Korean companies investing in Africa, while also increasing its official development assistance (ODA) to $10 billion by 2030.
President Yoon Suk Yeol made the announcement on Tuesday in Seoul at the opening of the first Korea-Africa Summit, which saw the attendance of 25 African heads of state and government, including the President of the African Development Bank Group, Dr. Akinwumi Adesina.
A total of 48 African countries were represented at the summit by various dignitaries, including presidents, kings, prime ministers, vice presidents, and ministers, to discuss the theme, “The Future We Make Together: Shared Growth, Sustainability, and Solidarity.”
President Yoon pledged to extend Korea’s Trade and Investment Promotion Frameworks and Investment Protection Agreements to African countries, aiming to foster stronger economic ties. African leaders praised Korea for its open and collaborative approach, highlighting investment opportunities within their respective nations and across the continent.
Dr. Adesina emphasized the importance of solidarity with Africa during his address, urging Korea to support the African Development Bank through the rechanneling of Special Drawing Rights (SDRs). He noted that the IMF-approved $20 billion limit for SDR rechanneling through multilateral development banks, including the African Development Bank, would deliver $80 billion in new financial support.
Adesina also called on Korea to generously contribute to the 17th replenishment of the African Development Fund and support the Alliance for Green Infrastructure in Africa (AGIA), a new initiative to mobilize private financing for green infrastructure.
The Korea-Africa Economic Cooperation (KOAFEC) Trust Fund, established by Korea in 2007 and managed by the African Development Bank, remains the largest of the Bank’s bilateral trust funds. Adesina praised Korea’s remarkable development journey, transforming from an aid-dependent nation to a major global donor, and underscored the deep relationship between Korea and the Bank since 1982.
President Yoon and African Union Chair Mohamed Ould Ghazouani of Mauritania co-chaired the summit, which focused on enhancing cooperation in trade, investment, technology, and sustainable development. Rwanda’s President Paul Kagame and Tanzania’s President Samia Suluhu Hassan were among the African leaders who highlighted their countries’ investment opportunities and called for increased collaboration.
During the summit, the African Development Bank and Korean entities signed key agreements, including a Memorandum of Understanding with the Korea Trade Insurance Corporation (K-SURE) and a Letter of Intent with the Korea Overseas Infrastructure and Urban Development Corporation (KIND).
In his closing remarks, President Yoon described the summit as “a new chapter for Korea-Africa relations,” outlining Korea’s commitment to digitalization, e-government, education, capacity building, climate change, food security, and critical minerals.
The summit marked a significant step in strengthening Korea-Africa relations, with both sides expressing optimism about the potential for shared growth and sustainable development.