• Tuesday, May 28, 2024
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AfDB, Korea sign $28.6m pact to boost Africa’s development

AfDB report puts Africa’s GDP at 3.8% in 2024

The African Development Bank (AfDB) and the government of Korea have signed two agreements for financial support to boost Africa’s development agenda.

The agreements were signed in Busan, South Korea last Wednesday, during the 7th Korea-Africa Economic Cooperation Ministerial Conference, which was co-hosted by the bank and Korea.

The value of the financing, which is $28.6 million, will primarily support energy access, agricultural transformation, and knowledge and capacity-building across a number of African countries, according to a statement.

“The amount will be disbursed to the African Development Bank Group in three installments: $4.6 million in 2023, and $24 million in 2024 and 2025,” it said.

Read also: AfDB to disburse $250m into Nigeria’s off-grid energy sector

It said the funding complements $600 million in co-financing under the Korea-Africa Energy Investment Framework, agreed with the Korean government in 2021.

“The framework supports African countries to build human capacity and develop their energy sectors.”

According to Akinwumi Adesina, president of AfDB, Korea’s additional funding was timely, especially as the nation celebrates the 40th anniversary of joining the bank.

He commended the government for its commitment to a strong partnership between the bank and Korea.

“Korea’s relationship with Africa is unique,” Adesina said. “There is a lot to learn from Korea which moved from a poor country relying on aid, to a donor country within a single generation.”

The second agreement between the AfDB and Statistics Korea is expected to strengthen statistical cooperation and enhance the capacity of African countries to produce quality data.