The South Korean government has pledged an investment worth $2.5 billion for Tanzania in a deal which was signed by the Tanzanian President Samia Suluhu.
This investment is a precursor for Tanzania’s access to concessional loans from the Economic Development Cooperation Fund (EDCF).
On the sideline of the Korea-Africa Summit which ends Wednesday, President Suluhu and the President Of The Korea International Cooperation Agency Chang Won Sam signed an Economic Partnership Agreement (EPA) and two Memoranda of Understanding (MoUs) to secure a stable supply of critical minerals.
The two also signed a deal to enhance cooperation in the blue economy sector in fishing, seafood processing, fishing port construction, marine technology, and research.
The EPA seeks to deepen the strategic relationship between Tanzania and South Korea, focusing on areas such as trade, investment, industry, and transportation.
Tanzania is among three African nations after Morocco and Kenya that were involved in discussions to form an EPA with South Korea.
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Tanzania boasts rich deposits of minerals such as lithium, cobalt, and nickel, which are essential for electric vehicle (EV) batteries.
What Mineral Deal Means for The Two
Tanzania’s Ministry of Minerals and South Korea’s Ministry of Trade, Industry, and Energy will work together on research, investment, extraction, and capacity building.
President Samia Suluhu Hassan proposed further cooperation in new sectors such as natural gas energy development, the creative sector (arts and film), and opening Korea’s job market to Tanzanian youth through the Employment Permit System (EPS).
President Samia’s two-day official visit concluded with her participation in the Korea-Africa Summit.
The meetings were hailed by Seoul as a critical step towards enhancing strategic cooperation with Africa amidst global challenges.
East African leaders, including Kenya’s President William Ruto and Rwanda’s President Paul Kagame, attended the summit. Uganda was represented by Vice President Jessica Alupo.
