Dar es Salaam, Tanzania – June 3rd, 2024 – South Korea’s pursuit of African resources and markets gained momentum this week as Tanzania and Ethiopia secured billions in loans during a major summit in Seoul.
The loans, totaling $3.5 billion, are part of broader agreements that grant South Korea access to Africa’s rich mineral deposits and a massive potential consumer base. Tanzania, for instance, received a $2.5 billion concessional loan spread over five years. Additionally, the East African nation signed accords allowing South Korean companies to tap into its ocean resources and critical minerals like nickel, lithium, and graphite – key components in clean energy technologies.
Meanwhile, Ethiopia, a fast-growing economy with over 126 million people, secured a $1 billion financing deal for infrastructure, science, technology, health, and urban development projects. Tanzania, on the other hand, is looking to collaborate with South Korea in areas like sustainable ocean resource management, natural gas development, and creative industries. The East African nation is also exploring the possibility of sending its workforce to South Korea.
These loan agreements come amidst a week-long summit where South Korean President Yoon Suk Yeol has met with leaders from Sierra Leone, Tanzania, and Ethiopia. He is also scheduled to hold talks with representatives from Zimbabwe, Togo, Rwanda, and Mozambique.
