TANZANIA and Ethiopia have announced significant loan agreements with South Korea, securing billions of dollars as part of broader deals aimed at granting South Korea access to Africa’s vital mineral resources and expansive export markets.
The agreements were signed during the South Korea-Africa summit this week, attended by at least 30 heads of state, including representatives from Tanzania and Ethiopia.
Tanzania’s presidential spokesperson, Zuhura Yunus, stated on Sunday that the East African nation will borrow $2.5bn over the next five years through concessional loans from South Korea. In addition, Tanzania signed two accords allowing South Korean use of its ocean resources and minerals essential for clean energy technologies, such as nickel, lithium, and graphite.
Ethiopia, one of Africa’s fastest-growing economies with a population of 126 million, signed a $1bn financing deal over four years. This funding will support infrastructure, science and technology, health, and urban development, as reported by the state-affiliated Fana media outlet.
Tanzanian President Samia Suluhu Hassan is seeking cooperation in various sectors, including the sustainable use of ocean resources, development of natural gas deposits, creative industries, and labor supply to South Korea, according to Yunus.
Since Friday, South Korean President Yoon Suk Yeol has held meetings with leaders from Sierra Leone, Tanzania, and Ethiopia. He is also scheduled to meet with heads of state from Zimbabwe, Togo, Rwanda, and Mozambique on Monday.
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