Tanzania and Ethiopia have announced significant loan agreements with South Korea, amounting to billions of dollars, as part of broader deals that will facilitate South Korea’s access to Africa’s crucial mineral resources and burgeoning export market.
The announcements come during the South Korea-Africa summit, where South Korea is hosting at least 30 heads of state, including leaders from Tanzania and Ethiopia.
Tanzania will borrow $2.5 billion over the next five years through concessional loans from South Korea. In addition to the loan agreement, Tanzania has signed two accords granting South Korea access to its ocean resources and minerals crucial for clean energy technologies, such as nickel, lithium, and graphite, according to presidential spokesperson Zuhura Yunus.
Ethiopia, a rapidly growing economy with a population of 126 million, has secured a $1 billion financing deal over four years. This funding will be directed towards infrastructure, science and technology, health, and urban development, as reported by the state-affiliated Fana media outlet.
Tanzanian President Samia Suluhu Hassan is also seeking cooperation with South Korea in various sectors, including the sustainable use of ocean resources, development of natural gas deposits, and creative industries. Additionally, she is aiming for Tanzania to supply labor to South Korea, Yunus noted.
Since Friday, South Korean President Yoon Suk Yeol has held bilateral meetings with the leaders of Sierra Leone, Tanzania, and Ethiopia. He is scheduled to meet with other African leaders, including those from Zimbabwe, Togo, Rwanda, and Mozambique, on Monday.
Melissa Enoch
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