The South Korean government will pay $5 billion for Africa's industrial development. One fifth of this amount will be allocated to electricity transmission through the Power Africa project. In addition, there is $600 million for renewable energies.
The South Korean Prime Minister responsible for strategy and finance, Kim Dong-Yeon, announced that his country would support the development of the African continent, mobilising 5 billion dollars during the years 2019-2020, in projects with high industrial impact. It was on the occasion of the 6th inter-ministerial meeting of the Koafec (Korea-Africa economic cooperation (an institution founded in 2006 with the mission of promoting trade between South Korea and African countries). The meeting was held on May 22 2018 in Busan, a city in southern Korea, on the sidelines of the 53rd Annual Meeting of the African Development Bank (AfDB).
Power Africa to strengthen power grids
South Korea’s commitment was made in the presence of Akinwumi Adesina, AfDB President and signatory of the two memorandums of understanding. One is the Korea-Africa Energy Facility (a South Korean mechanism to promote import export and investment in electricity in Africa, Editor’s note). For the time being, data on the distribution and investment terms of this $5 billion are not all known. However, according to the South Korean minister, at least one fifth of this funding, or one billion dollars, will be allocated to the development of electricity transmission infrastructure. The country intends to pay this share, in the activities of Power Africa, an international aid program for the electrification of sub-Saharan Africa, launched in 2013 by President Barack Obama, then maintained and extended by his successor in the White House, Donald Trump.
According to Mark Green, the administrator of the USAid development agency, which is one of the main sponsors of the Power Africa programme, this support comes at the right time. He, who also took part in Busan’s work, ensures that this support from the South Korean State will make it possible to install around 1,000 kilometres of power lines between the renewable energy production centres (hydro, solar and wind) supported and financed by the American initiative.
South Korea supports renewable energy in Africa
South Korean aid to Africa, through the Power Africa programme, follows another commitment expressed by that country. An AfDB press release announces that the South Korean government has signed a letter of intent to launch the Korea-Africa Energy Investment Facility. Under the terms of the agreement, South Korea will provide $600 million in concessional and non-concessional loans over a five-year period. By the end of 2018, this programme will have financed activities such as the preparation, construction and operation of electrical infrastructure through a mix of financial and technical assistance.
Boris Ngounou
