[CONTRIBUTION] Korea-Africa cooperation ushers in new chapter for further advancement

The Korea Times

The Korea Times

Finance

Wed, December 6, 2023 | 20:31

Economy

CONTRIBUTIONKorea-Africa cooperation ushers in new chapter for further advancement

Posted : 2023-09-14 16:01

Updated : 2023-09-14 16:01

By Kim Byoung-hwan

Africa, a region endowed with abundant natural resources and a young population, has high growth potential, so much so that it is seen as the "last emerging market of the 21st century."

Countries worldwide are trying to gain a stronger foothold in Africa. In December 2022, the Biden administration invited 49 African heads of state to Washington D.C. to hold the U.S.-Africa Leaders Summit and unveiled plans to invest more than $55 billion in Africa over the next three years. China has been investing heavily in Africa through the Belt and Road Initiative since President Xi Jinping took office in 2013.

Korea, once one of the most impoverished countries and a recipient of foreign aid, has ample development experience, successfully transitioning to a donor country in merely a few decades. As an economic powerhouse today with both advanced industries and cutting-edge technologies, Korea can be a crucial partner for African nations in economic development.

This year marks the 40th anniversary of Korea's accession to the African Development Bank, and the seventh Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference is expected to become a turning point in deepening Korea-Africa cooperation.

The resumption of this conference after it was suspended due to the COVID-19 pandemic signifies the operation of the consultative body between the finance ministers of Africa and Korea once again. It will also help boost cooperation ahead of next year's Korea-Africa Summit.

To that end, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho laid out plans to provide a $6 billion financial package for the next two years and suggested the "ABC Initiative" to enhance collaboration.

"A" stands for agricultural transformation. The Korean government launched the K-Rice Belt Initiative, a plan to build a rice production base to feed 30 million people in African countries that are experiencing a food crisis.

"B" is for bio-health. The government is willing to strengthen health solidarity between Korea and Africa by financing large-scale projects through the Economic Development Cooperation Fund (EDCF).

"C" is for climate change and the energy transition. The Korea-Africa Energy Investment Framework (KAEIF), signed in 2021, aims to identify promising energy projects in Africa as well as providing $600 million in financial assistance over the course of five years.

For the ABC Initiative to materialize, strengthening the foundation for private-sector cooperation during the 2023 KOAFEC is essential. In essence, diversifying ODA channels, boosting investment in human resource development in the private sector and removing cross-border trade barriers are necessary for the private sector in Africa to play a pivotal role in sustainable development.

During this conference, there were many bilateral meetings with African ministers and vice ministers. I was able to witness African countries' fervor and willingness to take on challenges.

As this year's KOAFEC Ministerial Conference was held in Busan, it holds great significance in demonstrating Korea's desire to reciprocate to the international community what we had received through the World Expo 2030. Busan was the last place of refuge for Koreans during the 1950-53 Korean War, and it was able to become the prosperous city it is today thanks to generous support from the international community.

As such, Korea hopes that the miracle of Busan could be replicated in Africa through the Expo. And while doing so, Korea stands ready to work together with Africa as one of its key partners.

The writer is first vice minister of economy and finance.