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Korea Eximbank backs Tanzania's AI ambitions with $170 million development loan

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Lee Dong-hoon, left, senior executive director at the Export-Import Bank of Korea (Korea Eximbank), shakes hands with Natu E. Mwamba, Tanzania's deputy finance minister, during an agreement signing ceremony in Dar es Salaam, Tanzania, Wednesday (local time). Courtesy of Korea Eximbank

Lee Dong-hoon, left, senior executive director at the Export-Import Bank of Korea (Korea Eximbank), shakes hands with Natu E. Mwamba, Tanzania's deputy finance minister, during an agreement signing ceremony in Dar es Salaam, Tanzania, Wednesday (local time). Courtesy of Korea Eximbank

Korea will provide a $170 million development loan to Tanzania to build an artificial intelligence (AI) and digital technology training institute, marking the first AI-focused project financed through the country's official development assistance fund, the Export-Import Bank of Korea (Korea Eximbank) said Thursday.

The loan agreement was signed the previous day in Tanzania's Dar es Salaam by Lee Dong-hoon, a senior executive director of the state-run lender, and Natu E. Mwamba, Tanzania's deputy finance minister.

The project is the first under the government's so-called "K-AI Package," a development cooperation initiative that combines infrastructure financing with support for AI technology in developing countries.

It also marks the first AI-related project financed by the country's Economic Development Cooperation Fund (EDCF), which provides long-term, low-interest loans to developing countries.

The planned institute in Tanzania will be built on a 35,000-square-meter site, roughly the size of five soccer fields. It will train workers in physical AI — technologies that enable machines such as robots to make decisions and act in real-world environments.

According to Korea Eximbank, the institution will offer four fields of study: AI, robotics, data analytics and the Internet of Things.

The facility will include AI laboratories and advanced computer infrastructure for AI training, while its curriculum will reflect Korean digital education systems, including online platforms for managing coursework and assignments and cloud-based systems for sharing educational materials.

The Tanzanian government also plans to build a large-scale AI data center near the institute with an aim to develop an AI cluster to attract technology companies.

"By supporting Tanzania, a country that is strategically developing its AI and digital industries, we aim to strengthen the foundation for our expansion in Africa," Lee said.

"This project will serve as a starting point for introducing Korea's AI technology to the continent and supporting Korean companies seeking overseas infrastructure projects," he added.

The EDCF was established by the Korean government in 1987 to support economic development in developing countries and promote economic cooperation. The Korea Eximbank manages the fund on behalf of the Ministry of Finance and Economy.


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