African Development Bank and KEXIM Forge New Co-Financing Pact to Drive Strategic Infrastructure and Technology Investment

The African Development Bank Group and the Export-Import Bank of Korea have formally signed a new memorandum of understanding designed to deepen co-financing cooperation across Africa and mobilise essential resources for sustainable development. Inked on 9 September in Seoul by AfDB President Dr Sidi Ould Tah and KEXIM President and CEO Hwang Ki-yeon, the five-year agreement replaces a cooperation framework that had been in place since 2005. The accord establishes updated mechanisms to identify and finance high-impact initiatives across the continent.

Speaking at the signing, President Ould Tah emphasised that the immediate priority is translating this new framework into a concrete portfolio of projects by drawing on funding, technologies, and expertise from the Korean private sector. The partnership initiative was launched on the sidelines of the 8th Korea-Africa Economic Cooperation Ministerial Conference, which also marks the 20th anniversary of the forum's founding. Over its history, KOAFEC has channelled approximately $50 million into project preparation, generating an investment pipeline exceeding $6 billion and mobilising about $4 billion in financing.

The agreement focuses heavily on strategic areas such as artificial intelligence and digital technologies, supporting infrastructure, supply chain resilience, the development and processing of critical minerals, transport, urban development, green infrastructure, and trade guarantee instruments. By drawing on the respective financial instruments of both partners, including loans, guarantees, and equity investments, the two institutions intend to consolidate economic ties between Korea and the Bank's regional member countries through structured co-financing.

This new partnership aligns directly with President Ould Tah's 'Four Cardinal Points' strategic vision, which prioritises strategic partnerships, large-scale capital mobilisation, and private investment. Furthermore, the initiative supports the ambition of the AfDB's New African Financial Architecture for Development. That broader institutional effort is designed to reorganise the African financial system, mobilise domestic resources estimated at $4 trillion, and better connect Africa to international markets to accelerate long-term economic transformation.

Why This Matters

The renewal of this institutional framework creates a structured pathway to channel international capital into foundational sectors that dictate long-term continental competitiveness. By explicitly targeting artificial intelligence, digital infrastructure, and critical minerals, the partnership addresses the technical and physical deficits that often constrain regional integration and industrial scaling. Aligning external bilateral assistance with institutional strategies like the New African Financial Architecture for Development allows regional member countries to leverage larger pools of patient capital for complex, capital-intensive projects.

Collaborative financing models utilizing loans, guarantees, and equity instruments mitigate structural barriers to private sector engagement. When multilateral development banks coordinate closely with export credit agencies like KEXIM, project developers gain predictable access to risk mitigation tools. This operational synergy is vital for advancing multi-year infrastructure developments in energy and transport, ensuring that resource mobilisation matches the scale of the continent's economic transformation agenda.

Opportunities

• Technology Integrators: Opportunities to deploy Korean digital technologies, artificial intelligence systems, and associated digital infrastructure across African markets through newly backed co-financing portfolios.
• Infrastructure Contractors: Commercial openings to execute large-scale engineering projects within targeted transport, urban development, and green infrastructure pipelines.
• Financial Institutions: Access to specialized trade guarantee instruments and co-financing facilities designed to strengthen institutional balance sheets and expand lending capacity.
• Resource Developers: Prospects for partnerships in the exploration, sustainable development, and value-adding processing of critical minerals vital to global supply chains.

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