Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Korea pledges to offer $6 billion for 2024-25 Africa cooperation
Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, seventh from right in the front row, and African Development Bank (AfDB) President Akinwumi Adesina, eight from right in the front row, pose with other dignitaries during the opening ceremony of the 2023 Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference at Ananti Hilton Busan hotel, Wednesday. Choo and Adesina signed a joint declaration on Korea-Africa cooperation, which includes Seoul's $6 billion financial aid package from 2024 to 2025. Courtesy of Ministry of Economy and Finance.
By Yi Whan-woo
By Yi Whan-woo
BUSAN ― Korea will offer $6 billion over the next two years in a financial aid package for Africa, the Ministry of Economy and Finance said Wednesday.
Announced during the 2023 Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference in Busan, the package was a part of action plans included in the joint declaration on Korea-Africa cooperation.
The plan comes after Asia's fourth-largest economy's previous commitment to offer $5 billion at the KOAFEC Ministerial Conference in 2018. The gathering had been suspended due to the COVID-19 pandemic.
The aid from 2024 to 2025 will be made through Korea's multiple initiatives aimed at capacity-building efforts in Africa, such as the KOAFEC Trust Fund, the Knowledge Sharing Program and the Economic Development Cooperation Fund.
In a closed-door ceremony, the declaration was signed by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho and African Development Bank President Akinwumi Adesina.
According to the ministry, Choo expressed hope that Korea and African countries can “reach a meaningful outcome” in the special Korea-Africa summit scheduled in May 2024 in Seoul.
In return, Adesina thanked Korea for its extensive financial support in addition to existing measures.
Under the joint declaration, the $6 billion fund will be used for the energy transition, agricultural innovation and knowledge development.
The efforts on energy transition range from building infrastructures for electricity, renewable energies and counter-global warming
The agricultural transformation ranges from up-to-date farming technologies to smart farms and rice supply chains.
For knowledge development, the fund will focus on nurturing startups created by young people, enhancing fisheries-related management, developing green farming capacities and founding knowledge-based industrial sites.