South Korea has announced billions of dollars in financing and investment packages at the first-ever Korea-Africa Summit being held in Seoul, in a major push to boost economic ties with the continent.
President Yoon Suk Yeol pledged that Korea will provide $14 billion in export financing to support Korean companies investing in African nations.
He also committed to increasing Korea’s official development assistance to Africa to $10 billion by 2030, up significantly from current levels.
The financial commitments headlined the two-day summit attended by 25 African heads of state and government representatives from 48 countries. The leaders gathered to discuss “The Future We Make Together: Shared Growth, Sustainability, and Solidarity” as Korea looks to deepen engagement with the continent.
“To show solidarity with Africa, I wish to request that Korea solidify this summit by agreeing to rechannel SDRs (Special Drawing Rights) to the African Development Bank,” said Dr. Akinwumi Adesina, President of the African Development Bank Group, in his address.
Adesina urged Korea to contribute to the Bank’s concessional lending window and a new green infrastructure initiative, in addition to channeling Special Drawing Rights through the Bank to dramatically scale up development financing for Africa.
Beyond the direct financing, President Yoon also pledged to extend Korea’s investment protection agreements and frameworks to promote trade and investment with African nations.
African leaders welcomed Korea’s open approach and outlined numerous investment opportunities across their countries in sectors like minerals, energy, agriculture and infrastructure.
“Choose a location to establish industries. Choose anywhere. We are no longer competing but collaborating,” encouraged King Mswati III of Eswatini, calling on the Korean business community to invest across the continent.
President Teodoro Nguema Obiang Mbasogo of Equatorial Guinea said, “We look forward to Korean companies investing in attractive Equatorial Guinea. We will provide appropriate guarantees and support for investors.”
“Togo is an open economy…We have a major seaport which needs to be expanded to promote trade,” stated Togolese President Faure Gnassingbe, highlighting opportunities in his country.
The summit marked a new chapter in Korea-Africa relations, with Korea rolling out the red carpet for enhanced economic cooperation as it eyes Africa’s promising growth prospects. Experts view the substantial financial commitments as Korea’s strategy to secure a bigger foothold in emerging African markets.
Implementation details are still being finalized, but the summit sent a strong signal of Korea’s intent to be a major financier of African development in the years ahead. Korean companies and investors are expected to rapidly increase their focus on the continent.
