- AfDB and South Korea have signed two agreements worth $28.6 million.
- The funding will boost growth in Africa. It complements the $600M co-financing deal under the Korea-Africa Energy Investment Framework.
- AfDB-South Korea partnership focuses on energy, agriculture, and capacity-building in multiple African economies.
In a plan to boost Africa’s development agenda, the African Development Bank (AfDB) and the Government of South Korea have inked two agreements, collectively valued at $28.6 million.
This financial support aims to catalyse growth and prosperity across Africa, marking a milestone in the collaboration between Africa and South Korea.
The funding, a testament to the growing partnership between AfDB and South Korea, complements the $600 million co-financing commitment established under the Korea-Africa Energy Investment Framework in 2021.
AfDB and South Korea partnership
This framework plays a pivotal role in supporting African nations in enhancing their human capacity and developing their energy sectors, thereby bolstering sustainable growth.
The agreements, which represent a significant step forward, were formally signed during the 7th Korea-Africa Economic Cooperation Ministerial Conference (KOAFEC), jointly hosted by the AfDB and South Korea.
KOAFEC, a platform for fostering collaboration and economic growth, convened this year to explore new avenues of cooperation and development.
The newly secured funding will be primarily channeled into initiatives aimed at advancing energy access, agricultural transformation, and knowledge and capacity-building across several African countries.
Disbursement of the $28.6 million will occur in three installments, with $4.6 million scheduled for 2023, followed by $24 million in 2024 and 2025.
The signing ceremony, attended by distinguished dignitaries, featured AfDB Group President Dr. Akinwumi Adesina and South Korea’s Deputy Prime Minister and Minister of Economy and Finance, Kyungho Choo.
Choo emphasized South Korea’s commitment to Africa’s sustainable growth and development, underlining the nation’s role as a genuine partner to African countries.
President Adesina expressed his gratitude for South Korea’s timely additional funding, particularly in the context of celebrating the 40th anniversary of South Korea’s association with the AfDB.
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South Korea’s transformative journey
He lauded the government for its dedication to fostering a robust partnership between AfDB and South Korea, highlighting the unique and transformative nature of South Korea’s own development journey from an aid-dependent nation to a donor country within a single generation.
The second agreement, signed between the AfDB and Statistics Korea, signifies an alliance to enhance statistical cooperation and bolster the capacity of African nations to generate high-quality data.
This collaboration is pivotal in promoting data-driven decision-making and evidence-based policymaking across the continent.
Under this agreement, AfDB and Statistics Korea will collaborate to raise awareness about statistical practices, share innovative data sources and methodologies, and enhance statistical quality, including the integration of big data.
This partnership aligns with the AfDB’s Africa Information Highway, a comprehensive network of live open data platforms connecting all African countries and 16 regional organizations, facilitating informed decision-making.
The Korea-Africa Economic Cooperation Trust Fund, as indicated by AfDB, stands as the largest of the Bank’s active bilateral trust funds, both in terms of contributions received and portfolio size.
Having received $108 million in contributions as of December 31, 2022, this trust fund has supported a staggering 203 projects since its inception, reinforcing the substantial impact of South Korea’s commitment to African development.
These agreements underscore the deepening collaboration between the AfDB and South Korea, as they work together to drive sustainable growth, development, and progress across the African continent.
