Energy Supply Diversification Rises Amid Middle East War... KOTRA Ventures into Africa

Emerging Alternative Energy Suppliers:
Algeria, Nigeria, and Other African Oil Producers
KOTRA and African Development Bank (AfDB)
Host Webinar on Entering the African Project Market

As the Middle East war continues for over two months, interest is growing among companies seeking alternative markets, and the Korea Trade-Investment Promotion Agency (KOTRA) has stepped up to support Korean companies entering the African project market.

On May 8, KOTRA announced that it had held the 'AfDB Project Entry Strategy Webinar' in collaboration with the Ministry of Economy and Finance and the African Development Bank (AfDB). The webinar was organized to facilitate company participation in projects supported by multilateral development banks (MDBs), which are considered relatively stable, taking into account the characteristics of the African market.

Participants from Korea and abroad attending the "AfDB Project Entry Strategy Webinar," hosted by the Korea Trade-Investment Promotion Agency (KOTRA) on the 7th (local time) together with the Ministry of Economy and Finance and the African Development Bank (AfDB), are posing for a commemorative photo. Korea Trade-Investment Promotion Agency

Africa is a market where demand for large-scale infrastructure projects—such as roads, ports, power grids, renewable energy, and urban infrastructure—continues to grow alongside new industries like digital infrastructure, data centers, and artificial intelligence (AI)-based public services. In particular, as instability in the Middle East increases due to the war, companies are now weighing the volatility of the Middle East against the uncertainties in Africa.

The AfDB is an MDB that supports the development of infrastructure, energy, and digital projects in Africa and has consistently expressed its willingness to cooperate with Korean companies. For Korean companies, participating in AfDB projects offers the advantage of greater business stability.

At this webinar, project developers from each AfDB sector made an unusual appearance and directly introduced projects in which Korean companies could participate, covering roads, energy, urban infrastructure, and ICT. The event drew attention as it included plans for major projects such as the Abidjan-Lagos Economic Corridor Highway, which will be internationally tendered in the second half of this year through public-private partnership (PPP) models across five West African countries (Côte d’Ivoire, Ghana, Togo, Benin, and Nigeria).

The AfDB trust fund representative also introduced methods for utilizing the Korea-Africa Economic Cooperation (KOAFEC) Fund, a Korean trust fund, thereby increasing the likelihood of Korean company participation. Rosine Tedajo, KOAFEC Trust Fund Manager, stated, "Through the KOAFEC Trust Fund, we are building a pipeline of projects that can be commercialized and will continue to promote Korea’s expanded participation in AfDB-funded projects."

KOTRA held the 'AfDB Project Entry Strategy Webinar' on the 7th (local time) in collaboration with the Ministry of Finance and Economy and the African Development Bank (AfDB). Korea Trade-Investment Promotion Agency

Kang Yoonjin, Director General of Development Finance at the Ministry of Economy and Finance, said in her welcoming remarks, "Amid recent global uncertainties, Africa is emerging as a new market of opportunity, particularly in the fields of AI, digital infrastructure, and energy. In September, with the KOAFEC ministerial meeting as an opportunity, we plan to further advance Korea-Africa cooperation and expand private sector participation by newly organizing investment briefings to support Korean companies’ entry into Africa."

Jang Chungsik, Head of KOTRA’s Africa Regional Headquarters, stated, "The African region is expected to post economic growth rates in the 4% range for 2024-2025, far exceeding the global average. As a result, infrastructure development is being actively pursued, and global investors’ interest is increasing due to the Middle East war. We will do our utmost to support Korean companies in expanding their presence in Africa through participation in relatively stable AfDB projects."

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