African Development Bank and Korea's Export-Import Bank Forge New Pact to Finance Continental Growth

The African Development Bank Group and the Export-Import Bank of Korea have signed a new memorandum of understanding to deepen co-financing cooperation on projects across Africa and mobilise additional resources for the continent's sustainable development. The agreement was signed on 9 September in Seoul by AfDB President Dr Sidi Ould Tah and KEXIM President and CEO Hwang Ki-yeon, replacing a cooperation framework dating back to 2005. The accord establishes new mechanisms to identify and finance high-impact projects in priority sectors essential to the economic transformation of regional member countries.

Speaking on the initiative, AfDB President Dr Sidi Ould Tah stated that the primary focus is to translate this framework into a concrete portfolio of high-impact projects by mobilising funding, technologies, and expertise from the Korean private sector. The targeted areas include artificial intelligence, digital infrastructure, critical minerals, energy, and transport. The five-year agreement provides a structured foundation to strengthen technical and financial cooperation between the two institutions, supporting sustainable and inclusive growth across the African continent.

The partnership initiative was launched on the sidelines of the 8th Korea-Africa Economic Cooperation Ministerial Conference, which marks twenty years since the forum's founding. Over its two-decade history, KOAFEC has evolved from a political dialogue platform into an active vehicle for project preparation, investment mobilisation, and private-sector engagement. Since its inception, KOAFEC has channelled about $50 million into project preparation, helping to generate an investment pipeline exceeding $6 billion and mobilise approximately $4 billion in financing.

The new memorandum consolidates economic ties between Korea and the Bank's regional member countries while strengthening structured cooperation in co-financing. It provides for closer collaboration to identify, assess, and develop joint financing opportunities by drawing on the respective financial instruments of both partners, including loans, guarantees, and equity investments. Furthermore, the two institutions will focus efforts on supply chain resilience, urban development, green infrastructure, and financial institution products such as trade guarantee instruments, fully aligning with the AfDB strategic vision.

Why This Matters

This renewed institutional partnership carries significant weight for long-term capital formation and strategic infrastructure development across Africa. By bridging international financial institutions with Korean private sector capabilities, the framework directly addresses the resource gaps traditionally associated with large-scale industrialisation and technology deployment. Mechanisms that combine loans, guarantees, and equity investments help mitigate perceived risks in emerging markets, encouraging sustained cross-border capital flows into capital-intensive sectors like transport, energy, and critical mineral processing.

The integration of advanced technological priorities such as artificial intelligence and digital infrastructure within the agreement reflects a critical shift toward future-proofing African economies. By aligning with broader frameworks like the New African Financial Architecture for Development, the partnership seeks to better connect regional domestic resources with international market opportunities. This structured approach to co-financing ensures that regional member countries can build competitive, resilient supply chains and accelerate value-added industrialisation over the coming decades.

Opportunities

• Contractors and Operators: Commercial openings to execute large-scale engineering, procurement, and construction contracts tied to green infrastructure, transport networks, and urban development projects funded through the new co-financing framework.
• Technology Integrators: Direct avenues to deploy advanced digital solutions, artificial intelligence platforms, and foundational digital infrastructure in collaboration with Korean technological partners and regional institutions.
• Financiers and Lenders: Opportunities to participate in syndicated loans, risk-sharing facilities, and trade guarantee instruments designed to support private sector investments in critical minerals and supply chain resilience.
• Industrial Developers: Strategic openings to engage in critical mineral extraction and value-added processing initiatives backed by expanded resource mobilisation and bilateral institutional backing.

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