The Government of South Korea has pledged a substantial $24 billion in development and trade assistance to benefit African nations, including Nigeria. This commitment was formalized in a Joint Declaration at the 2024 Korea-Africa Summit held in Seoul, Korea, and published on the Korean government website on Wednesday, June 5, 2024. Representatives from about 48 African countries, including Nigeria’s Foreign Minister Yusuf Tuggar, attended the summit to enhance economic ties with Korea.
Development Projects
South Korea has allocated $10 billion for development projects across Africa. This funding aims to support various initiatives that will contribute to the continent’s sustainable development.
Trade and Investment
An additional $14 billion is designated to bolster Korean companies‘ operations in Africa. This funding will facilitate trade and investment in host countries, driving economic growth and strengthening bilateral ties.
Korea’s Vision for Africa
South Korean President Yoon Suk Yeol emphasized the importance of this cooperation, stating that Korea’s involvement in Africa will set a precedent for stable supply chains through mutually beneficial partnerships and contribute to the sustainable development of global mineral resources.
“To facilitate cooperation discussed at this Summit, Korea will continue to expand Official Development Assistance (ODA) up to 10 billion US dollars by 2030 as a catalyst for projects for cooperation with Africa, including through the expansion of EDCF Framework Arrangement (F/A) and grants. Moreover, approximately 14 billion US dollars in export financing will be provided to Korean companies by 2030 to encourage their activities in Africa, thus stimulating trade and investment with Africa,” said President Yoon in the joint statement.
Support for UN Security Council Bid
Korea also expressed its willingness to support African countries in their bid to become permanent members of the UN Security Council, further solidifying its commitment to the continent’s global standing.
Launch of Korea-Africa Critical Minerals Dialogue
In response to Korea’s pledge, stakeholders agreed to initiate the Korea-Africa Critical Minerals Dialogue during the summit. This dialogue will create a foundational framework for enhancing cooperation between Korea and Africa, ensuring a stable supply of critical minerals and promoting technological collaboration.
“We further recognize the importance of identifying opportunities for Korean companies to invest in Africa and add value to the development of critical mineral resources so that the collaboration may contribute to creating job opportunities and revitalizing local economies,” the joint statement partly reads.
African Solidarity and Vision
African representatives reaffirmed their commitment to Korea, emphasizing that sustainable peace and stability are essential for realizing the African Union’s vision of an integrated, prosperous, and peaceful Africa.
Nigeria’s Potential Benefits
Nigeria stands to gain significantly from the financial commitments made at the Africa-Korea Summit. Data from the Nigerian Bureau of Statistics (NBS) reveals that Korea was Nigeria’s seventh top import trading partner in the last quarter of the 2023 financial year, with imports valued at N304,619,077,676.23. Key imports included mackerel (Scomber scombrus, Scomber australasicus), while Nigeria exported unwrought aluminum and alloys to Korea worth N3,400,420,000 in Q4 2023.
Expanding Korean Business Presence
According to the Embassy of Korea to Nigeria, Korean businesses are increasingly expanding their presence in Nigeria, particularly in resource development and construction, further solidifying the economic relationship between the two nations.
Conclusion
South Korea’s $24 billion pledge underscores a robust commitment to fostering development and trade in Africa. This significant investment is poised to drive economic growth, enhance bilateral relations, and contribute to the sustainable development of the continent’s critical mineral resources.