The Korean government has announced that it will provide USD 5 billion to fund a total of 61 projects across a range of African nations over the next two years. The Korean government has also pledged to share its knowledge and experience with its African partners in five selected sectors, including agriculture and energy.
The Ministry of Strategy and Finance has adopted the joint Korea-Africa declaration and the 2017-2018 Action Plan, both of which set out guidelines for a future vision and direction of cooperation between Korean and African governments, at the 2016 Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference that took place in Seoul on Oct. 25.
The gathering was a follow-up to President Park Geun-hye’s visit to Ethiopia, Uganda and Kenya in May this year, when the parties decided to set up detailed cooperation measures through KOAFEC. The conference was attended by ministers and vice ministers from more than 40 countries, as well as representatives from the African Development Bank (AfDB) and five international organizations, including the United Nations Economic Commission for Africa.
Deputy Prime Minister Yoo Il-ho talks about the successful outcomes of the 2016 KOAFEC Ministerial Conference, in Seoul on Oct. 25.
Deputy Prime Minister Yoo Il-ho said at the KOAFEC roundtable meeting that, “Through this meeting, we agreed to actively implement President Park’s four development cooperation goals, based on the High Five Priorities of the AfDB (High 5s), as they are the future goal of Korea-Africa cooperation.”
Yoo, who also serves as minister of strategy and finance, introduced essential areas for African economies, such as an agriculture revolution, energy development, facilitating industrialization, integrating regional economies and improving quality of life, emphasizing the Korean government’s willingness to share its knowledge and experiences in these areas.
“Based on Korea’s development experience and capabilities, the Korean government will set up cooperation projects that are customized to each individual African economy and share its knowledge with them,” said the deputy prime minister.
Through the KOAFEC meeting, Korea and its African partners pledged to bolster financial cooperation and to work together in financing exports.
In regard to financial cooperation, the Korean government is pledged to carry out financial cooperation projects worth USD 10 billion. To this aim, the government produced pro-African cooperation plans composed of 61 projects that are worth USD 5 billion in the five selected sectors and which will cover the 2017-2018 action plan over the next two years. These include the government’s economic cooperation projects, such as a trust fund between Korea and the AfDB, the Knowledge Sharing Program (KSP), and export financing projects that involve private enterprises.
AfDB President Akinwumi Adesina (left) and Deputy Prime Minister Yoo Il-ho sign the KOAFEC Trust Fund agreement, at the 2016 KOAFEC Ministerial Conference in Seoul on Oct. 25.
Under the agreement, the KOAFEC Trust Fund will accelerate USD 18 million worth of cooperation projects designed to help finance individual female farmers, a project currently underway in Kenya, Malawi, Rwanda and Zambia.
Regarding the KSP, Korea will set up cooperation projects worth USD 2 million by providing economic policy consultations, especially concerning land, geographic information, transportation and customs administration. The agreed action plan includes the Economic Development Cooperation Fund (EDCF), worth USD 1 billion, which will focus on the construction of economic and social infrastructure across Africa, establishing transmission networks in Tanzania, and establishing a national university for sustainability studies in Ghana.
In the export financing sector, Korea will establish energy infrastructure facilities in Botswana and Egypt, and finance resource development projects in Mozambique, all of which are worth USD 4 billion, while implementing projects based on the vast amount of natural resources found across the African continent.
Deputy Prime Minister Yoo Il-ho (fourth from left) poses for a photo with participants in the 2016 KOAFEC Ministerial Conference after signing letters of intent for the KOAFEC Trust Fund and for the Economic Cooperation Development Fund (EDCF), in Seoul on Oct. 25.
On the same day, the deputy prime minister held meetings with AfDB President Akinwumi Adesina and Burkina Faso’s Finance Minister Hadizatou Rosine Coulibaly Sori to discuss measures to enhance bilateral cooperation.
Deputy Prime Minister Yoo expressed his gratitude to the AfDB president for selecting Busan as the venue for the AfDB’s annual conference in 2018. The AfDB president proposed cooperation on the energy sector, while highly valuing the excellence of Korea’s energy technology and development facilities.
Finally, Finance Minister Hadizatou Rosine Coulibaly Sori of Burkina Faso called for the deputy prime minister to expand cooperation on farming and fishing, two of Burkina Faso’s economic strengths.
By Yoon Sojung
Korea.net Staff Writer
Photos: Ministry of Strategy and Finance
arete@korea.kr
Participants in the 2016 KOAFEC Ministerial Conference listen to the opening speech from Deputy Prime Minister Yoo Il-ho, in Seoul on Oct. 25.
Deputy Prime Minister Yoo Il-ho (second from left) and AfDB President Akinwumi Adesina hold a meeting in Seoul on Oct. 25.
Finance Minister Hadizatou Rosine Coulibaly Sori of Burkina Faso (left) and Deputy Prime Minister Yoo Il-ho pose for a photo in Seoul on Oct. 25.
