South Korea Pledges $24 Billion in Aid for Africa at Mega Summit

South Korea has announced a $10 billion aid package for Africa over the next six years, a deal which will see the world’s second-largest continent secure a stable supply of critical minerals.

President Yoon Suk Yeol unveiled the initiative Tuesday, which seeks to harness Africa’s vast mineral wealth and its potential as a major export market.

The package was announced on the sidelines of the ongoing Korea-Africa summit attended by over 30 heads of state and delegations from 48 countries.

President Yeol called for the establishment of robust frameworks to enhance trade and investment.

“We will seek sustainable ways to work together on issues directly related to future growth, such as stable supplies of key minerals and digital transformation,” Yoon stated in his opening remarks.

$14 Billion Export Financing For Africans

The aid package is complemented by an additional $14 billion export financing designed to promote trade and investment for South Korean companies in Africa.

“Africa holds 30% of the world’s reserves of critical minerals, including chrome, cobalt, and manganese,” Yoon noted adding that “partnering with Africa is crucial for our future growth.”

Kenya-South Korea Investment Packs

East African leaders, including Kenya’s President William Ruto, Tanzanian President Samia Suluhu Hassan, and Rwanda’s President Paul Kagame, are present at the summit.

Also Read: Job Creation Top of Agenda As Ruto Tours South Korea

Uganda is represented by Vice President Jessica Alupo.

These leaders are expected to finalize trade deals with South Korea during the first-ever Korea-Africa Summit.

President Ruto will hold bilateral talks with President Yoon to discuss the Ksh.132 billion Framework Arrangement partnership established in November 2022.

$40 Billion For Kenya’s Creative Economy

Ruto will sign agreements worth Kshs 40 billion to boost Kenya’s creative economy, adding on top of the $6.7 billion he secured in deals during a U.S. visit.

He is also expected to negotiate a $25 billion package for water and irrigation projects, according to the Kenyan State House.

South Korea, a global leader in energy consumption and semiconductor production, is also home to Hyundai Motor Group, the world’s fifth-largest automaker.

Hyundai is leading the push towards electrification, highlighting the strategic importance of a stable supply of critical minerals.

This initiative marks a key milestone in South Korea’s efforts to secure its supply chains and promote sustainable economic development in Africa.

In 2023, Hyundai Motor Company had nearly 300 thousand vehicles in Africa and the Middle East region.

This was an increase from the previous year 2022. That year, the company sold more than 3.45 million units worldwide.

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Collins Ogutu

Nairobi based Digital Journalist, Corporate Communication Expert and Digital Marketer with a wealth of experience in multimedia. Accredited member of the Media Council of Kenya.

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