MOU with African Development Bank on financial cooperation

Hwang Ki-yeon (left), governor of the Export-Import Bank of Korea, and Sidi Ould Tah, president of the African Development Bank, pose for a photo after signing a memorandum of understanding to expand financial cooperation in Africa during the eighth Korea-Africa Economic Cooperation Ministerial Conference at the Grand Walkerhill hotel in Gwangjin-gu, Seoul, on Wednesday. (Export-Import Bank of Korea)
Hwang Ki-yeon (left), governor of the Export-Import Bank of Korea, and Sidi Ould Tah, president of the African Development Bank, pose for a photo after signing a memorandum of understanding to expand financial cooperation in Africa during the eighth Korea-Africa Economic Cooperation Ministerial Conference at the Grand Walkerhill hotel in Gwangjin-gu, Seoul, on Wednesday. (Export-Import Bank of Korea)

The Export-Import Bank of Korea (Korea Eximbank) will expand joint financing with the African Development Bank (AfDB) for strategic sectors including artificial intelligence, critical mineral supply chains and eco-friendly infrastructure. The move aims to broaden opportunities for South Korean companies to participate in large-scale projects and supply chain initiatives across Africa.

Korea Eximbank said Thursday it signed a memorandum of understanding with the AfDB to promote sustainable growth and expand financial cooperation in Africa.

The agreement was signed on the sidelines of the eighth Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference held in Seoul on Wednesday. Hwang Ki-yeon, governor of Korea Eximbank, and Sidi Ould Tah, president of the AfDB, signed the memorandum on behalf of their respective institutions.

The two institutions plan to pursue joint financing centered on three areas: AI and digital transformation, stabilizing critical mineral supply chains, and eco-friendly and renewable infrastructure. The focus will be on linking Africa's resources and development needs with the technological and business capabilities of South Korean companies to increase their participation in local projects.

Critical minerals and infrastructure offer particularly promising opportunities for cooperation, both for South Korean companies expanding into Africa and for diversifying supply chains. Through financial cooperation with the AfDB, Korea Eximbank plans to support South Korean companies' participation in large-scale infrastructure and supply chain projects.

The new agreement marks a complete overhaul of the memorandum the two institutions first signed in 2005, 21 years ago. Marking the 20th anniversary of their co-hosting of KOAFEC, the two sides expanded the scope of cooperation to include future industries and supply chains.

"It is meaningful to redefine our partnership with the AfDB, which has continued for more than 20 years, and we will pursue financial diplomacy that connects South Korea's technological capabilities with Africa's future development needs," Hwang said.

He added, "We will strengthen strategic cooperation with major multilateral development banks, including the AfDB, to actively support South Korean companies' expansion into global markets."

Africa is a massive market with a population of about 1.55 billion as of 2025, and a key supplier of critical minerals. According to the UN, Africa's population is expected to grow to about 2.5 billion by 2050.

The AfDB estimates that Africa holds about 30 percent of the world's reserves of major critical minerals, including cobalt, lithium, graphite, rare earths, platinum group metals, copper, manganese and nickel.


rim@heraldcorp.com