South Korea Hikes Aid for Africa

South Korean Finance Minister Yoon Jeung-hyun. South Korea plans to increase its funding for Africa by some USD1 billion. Photo by: IMF / CC BY NC-ND IMFCC BY NC-ND

South Korea intends to increase its funding for the Economic Development Cooperation Fund to Africa to some USD1 billion by 2014, or twice the funding provided during the 2005-2009 period.

“With Korea’s contribution to build a social safety net and create more jobs, more opportunities will be given to the lower and middle class of Africa, which stand as the biggest victims of the [global] economic crisis,” South Korean Finance Minister Yoon Jeung-hyun said in a speech at the Korea Africa Economic Cooperation Conference on Sept. 15.

South Korea will consider the situation of Africa at the forthcoming G-20 financial summit, which will be held in the East Asian nation in November, the minister added.

South Korea plans to support 24 projects on technological cooperation with USD11 million from a joint trust fund at the African Development Bank. It will also help combat climate change and promote green growth in the African region, The Korea Herald reports.

Meanwhile, South Korea’s Ministry of Strategy and Finance and AfDB will extend their USD200 million cofinancing agreement through 2013. The two institutions signed a memorandum of understanding at the sidelines of Wednesday’s forum.

The decision will improve AfDB’s capacity to cofinance sovereign loans in Africa and sustain the region’s growth following the financial crisis, AfDB chief Donald Kaberuka said.

AfDB and Korea signed two more MOUs, one on a knowledge partnership strategy and another on trade investment promotion. 

About the author

  • Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.