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- South Korea is keen on Africa as a supplier for minerals critical to its high-tech industries.
- At South Korea’s first summit with African countries, the African Development Bank asked the country for more investment in green energy, and other critical areas.
- South Korea will raise about R266 billion for Korean businesses that want to invest in Africa and in increased aid to the continent.
China, Russia and the United States are all keen to secure scarce minerals on the African continent.
South Korea has offered an alternative to partnering with any of them.
South Korea leads in “advanced industries”, and Africa is “a globally significant region for critical mineral reserves”, according to a declaration from the inaugural Korea-Africa Summit this week. The gathering calls for “mutually beneficial cooperation and knowledge sharing”, the summit communique said.
South Korea has almost no investments on the continent, but the summit, under the theme “The Future We Make Together: Shared Growth, Sustainability, and Solidarity”, attracted 48 countries represented by at least a minister, with a splattering of presidents and kings. This included Kenyan President William Ruto, who last year said he was against African leaders being summoned to world capitals, but made the trip to Seoul.
South Korea announced that it would raise about R266 billion (US$14 billion) in export credits for Korean businesses that want to venture into Africa, while offering R190 billion (US$10 billion) in the form of aid by 2030.
The summit agreed to establish a Korea-Africa Critical Minerals Dialogue – just as the US seeks to remodel its African Growth and Opportunity Act (AGOA) to include a critical minerals agreement.
The US is looking to incentivise non-Chinese investments in both mining and processing in eligible African countries which have key reserves of the minerals the US and others currently have to source from China.
Africa’s demands
African leaders arrived in Seoul with their own agenda.
Dr Akinwumi Adesina, President of the African Development Bank (AFDB) said that South Korea has contributed close to R15 billion to the banks’ projects since 1982, but more should be done.
“To show solidarity with Africa, for the ‘future we make together’, I wish to request that Korea solidifies this Korea-Africa Summit by agreeing to re-channel SDRs (special drawing rights) to the African Development Bank,” he said.
Among other demands from the AFDB is that South Korea should contribute to the 17th replenishment of the African Development Fund.
Adesina also asked South Korea to support the Alliance for Green Infrastructure in Africa (AGIA), developed by the African Development Bank, Africa50 and the African Union, to mobilise R190 billion of private capital for green infrastructure in Africa.
South Korea came prepared to show its commitment. Seoul and Tanzania agreed on a R48 billion concessional loan, with the funds to finance major improvements to Zanzibar’s healthcare system.
A $1 billion agreement of a similar nature was made with Ethiopia to finance science and technology, urban development, infrastructure and health projects.
The News24 Africa Desk is supported by the Hanns Seidel Foundation. The stories produced through the Africa Desk and the opinions and statements that may be contained herein do not reflect those of the Hanns Seidel Foundation.
