South Korea sets aside $ 5 billion financial support fund for Africa’s development projects
The South Korean government has agreed to a $ 5 billion financial support package to Africa through a partnership with the African Development Bank (AfDB) and other development agencies in the continent. The decision was arrived at during the 53rd African Development Bank annual meeting in Busan South Korea after a roundtable discussion of African finance ministers and the Korean government under the Korea-Africa Economic Cooperation (KOAFEC) Conference.
Speaking at the event, AfDB President Akinwumi Adesina talked of strengthening partnerships with Asia with an aim to achieve wider collaborations for development. The agenda of the conference under the theme; Transforming Africa’s Agriculture through Industrialization and Inclusive Finance, included chatting a way towards achieving long-term industrial development planning in Africa. In addition to value addition while majoring in Africa’s strengths in food production and natural resource.
The $5 billion fund will be provided courtesy of the cooperation of several Korean agencies and programs including the Economic Development Cooperation Fund, Korea Import-Export Bank and the Knowledge Sharing Program.
Additionally, the African Development Bank (AFDB) signed three agreements including the renewal of the $ 93 million bilateral Korea-Africa Economic Cooperation (KOAFEC) Trust Fund. The fund is controlled by the AFDB and is used towards grants for capacity building and project feasibility studies in the energy, water, agriculture and agroforestry sectors. Under the new agreement, $ 18 million will be added to the fund from the government of South Korea.
Other partnerships under the $ 5 billion fund include the Tech Corps human resource exchange program between South Korea and the African Development Bank, which aims to transfer South Korea’s strong technology capabilities to Africa. Additionally, the government of Korea will make a $ 600 million investment in Africa’s energy sector through the AfDB which it joined in 1982.
The African Development Bank is a joint financial institution with partner countries and outside Africa whose main mission is to improve living standards and fight poverty within the continent through promoting public-private partnership projects.
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