Government Provides $6 Billion Financial Support to Africa Over Two Years

7th Korea-Africa Economic Cooperation Ministerial Meeting on the 13th
Overseas Economic Cooperation Fund $1.5 Billion, Export Financing $4.3 Billion
"Vividly Showcasing the Busan Expo Vision to Africa"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is shaking hands with Akinwumi Adesina, President of the African Development Bank (AfDB), at the '2023 Korea-Africa Economic Cooperation (KOAFEC) Ministerial Meeting' held on the 13th at the Ananti Hilton Hotel in Busan. Photo by Ministry of Economy and Finance

The government will provide financial support amounting to 6 billion USD to Africa over the next two years.

On the 13th, the Ministry of Economy and Finance announced that at the 7th Korea-Africa Economic Cooperation (KOAFEC) Ministerial Meeting held at the Ananti Hilton Hotel in Busan, a "Korea-Africa Joint Declaration" was produced, which included this plan.

KOAFEC is a meeting to discuss with Africa the transfer of Korea's economic development experience, cooperation in resource development, and support for domestic companies' market entry. The meeting was attended by Akinwumi Adesina, President of the African Development Bank (AfDB), and delegations from 38 countries. It was held for the first time in five years since the 6th meeting in June 2018 due to COVID-19.

The declaration released that day included the "2024/25 Action Plan," under which Korea will provide a financial package of 6 billion USD over two years. The support amount increased by 1 billion USD from the 5 billion USD announced at the previous meeting. Of this, 1.5 billion USD will be allocated to the Economic Development Cooperation Fund (EDCF), and 4.3 billion USD will be used to support exports to Africa. The AfDB Korea Trust Fund was also significantly increased to 24 million USD from 4.6 million USD this year. Additionally, 17 million USD was allocated to the Knowledge Sharing Program (KSP).

The financial support will mainly focus on energy development and transition, agricultural innovation, and knowledge and capacity development. Infrastructure construction such as power generation facilities, renewable energy, and energy efficiency projects are expected to be carried out. Agricultural production infrastructure will be established, and modern agricultural technologies and rice supply chain development will be promoted. To enhance knowledge and capacity development, financial accessibility will be strengthened, and youth entrepreneurship investment promotion projects will also be supported.

Meanwhile, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho held a signing ceremony for the AfDB Korea Trust Fund contribution agreement with President Adesina immediately after the meeting.

Deputy Prime Minister Choo said, "We expect meaningful outcomes at the Korea-Africa Summit scheduled for next year," and added, "Holding this meeting in Busan was an opportunity to vividly showcase the vision of the Busan Expo to African countries."

This content was produced with the assistance of AI translation services.