South Korea has signed 47 agreements with 23 African countries aimed at expanding cooperation in mining, energy and manufacturing.
Announced by South Korea’s Ministry of Trade, Industry and Energy during a visit by a delegation from 48 African nations to the Asian country on June 5, the agreements include 12 cooperation agreements and 34 memoranda of understanding.
“Despite its enormous potential, Africa still accounts for only 1-2% of South Korea’s trade and investment,” stated South Korea’s President Yoon Suk Yeol. “My hope is that mutually beneficial resource cooperation will be expanded.”
Manufacturing company Hyosung Heavy Industries secured a $30 million contract with state-owned electricity company Electricidade de Moçambique to supply electric transformers to Mozambique. The agreement aims to modernize the country’s power infrastructure by modernizing outdated transformers and substation equipment.
Tanzania and Ethiopia signed loan agreements with South Korea in exchange for access to their mineral resources. Per the agreement, Tanzania will receive $2.5 billion over five years while granting South Korea access to critical minerals including nickel, lithium and graphite.
Meanwhile, South Korea agreed to provide $1 billion in finance over four years to Ethiopia as part of a deal to increase cooperation across infrastructure, science and technology, health and urban development.
South Korea made similar commitments with Morocco, Ghana, Malawi, Zimbabwe and Madagascar, having signed Trade and Investment Promotion Framework agreements with the African countries to facilitate and strengthen trade and investment.
Additionally, on June 4, President Yeol pledged $10 billion to Africa’s development over the next six years while offering $14 billion in export financing to promote trade and investment for South Korean companies operating in Africa.
