By George Mgbeleke

Korean and Africa leaders attends the inaugural Korea Africa summit commits to “Critical Minerals Initiative”aimed at fostering sustainable development in Africa writes, Yucee Uwah and Emman Ozoemenawith agency reports.

The inaugural Korea-Africa summit 2024 held June 4 to 5, 2024 atKINTEX in Ilsan, north of Seoul, South Korea with African leaders pledging to scale trade relations and development aid to an all-time high.

The leaders adopted a joint declaration on boosting trade and investment, cooperation in critical minerals and development projects, and collaboration on the global stage.

South Korean President Yoon Suk Yeol and Africa leaders representing 48 African countries agreed on Tuesday, June 5 2024 to forge deeper trade and investment cooperation, when it agreed on a new agenda“critical minerals dialogue” aimed at fostering sustainable development of the continent’s resources.

The summit, the first in the history of Korea Africa relations of over 60 years, since Korea opened diplomatic and trade relations with African countries is coming in the heels of increasing call for deepening trade and development aid between Korea and Africa.

As the host of this auspicious summit, South Korea President Suk Yoel said
“The Critical Minerals Dialogue launched by South Korea and Africa will set an example for a stable supply chain through mutually beneficial cooperation and contribute to sustainable development of mineral resources around the world,” Yoon said in his closing remarks.

“Korea is scaling relations with Africa across broad spectrum of sectors in response to emerging opportunities.

Hosting a first-ever summit with the leaders of 48 African nations, Yoon said South Korea would increase development aid for Africa to $10 billion over the next six years as it looks to tap the continent’s rich mineral resources and potential as a vast export market.

He also pledged to offer $14 billion in export financing to promote trade and investment for South Korean companies in Africa.

South Korea is one of the world’s largest energy buyers and is home to leading semiconductor producers. It is also home to the world’s fifth-largest automaker, Hyundai Motor Group, which is making a push for electrification.

Partnering with Africa, which has 30% of the world’s reserves of critical minerals including chrome, cobalt and manganese is crucial, Yoon’s office has said.

In a joint declaration issued by South Korea, the African Union (AU) and its member nations, the leaders pledged to speed up talks for economic partnership agreements and trade and investment promotion frameworks.

They also called for advancing cooperation for Africa’s food security with South Korea’s support with agricultural technology and smart farming.

African leaders welcomed the South Korea’s “Tech4Africa” initiative aimed at supporting the education and training of Africa’s young population.

AU Chairperson and Mauritanian President Mohamed Ould Ghazouani, at a joint news conference with Yoon, said African countries were looking to learn from Korea’s experience in developing human resources, industrialisation, and digital transformation.

Vast and Fast Growing Market

Yoon said 33 heads of state participated in the summit. This huge
attendance is significant in view of the emerging efforts consolidate the existing trade relations, investment opportunities as well as expanding opportunities in relations between Korea and Africa.

Yoon has proposed “shared growth” as a pillar of cooperation with the continent and said the leaders agreed to expand trade and investment by establishing institutional frameworks to facilitate them.

By reaching out with offers to help with industrial infrastructure and digital transformation, South Korea is trying to tap into a vast and fast-growing market that is home to 1.4 billion people, the majority of whom are 25 or younger.

The joint declaration said the leaders recognised the instability of global supply chains, and that future industries increasingly depended on the stable supply of mineral resources.

“In this context, we agree to launch the Korea-Africa Critical Minerals Dialogue during this summit which will serve as an important institutional foundation for enhancing cooperation between Korea and Africa,” it said.

Park Jong-dae, a former South Korean ambassador to South Africa and Uganda, arguedthat Western and Chinese models of development had failed African nations, and South Korea offered a valuable alternative path.

“The essence of the Korean model of development cooperation is human development, and about management, rather than about provision of assistance per se,” he said.

“Korea has the experience and know-how of development … while many African countries have immense possibilities for development based on yet to be explored, untapped resources and endowment, and dynamic young population,” he said.

On Wednesday, South Korean business leaders hosted a business summit focused on investment, industrial development, and food security.

Yoon separately held talks with 25 leaders on the sidelines of the summit, his office said.

Yoon agreed with the leaders of Tanzania to provide $2.5 billion concessional loans and Ethiopia for $1 billion financing to go to infrastructure, science and technology and health and urban development.

Additionally, Kenyan President William Ruto disclosed that South Korea would provide $485 million concessional development funding.

African Development Bank Commends Korea

In an address to delegates at the summit, the African Development Bank (AfDB)President, Adewunmi Adesina commended Korea’s inspiring and determined development journey, that transformed “a poor and aid-dependent country” into “one of the largest donor countries in the world.”

Adesina highlighted the deep relationship between Korea and the Bank, starting from 1982 when Korea became a member of the Bank. Since then, he said, Korea “has contributed close to $795 million to the Bank, the African Development Fund and the Korea Trust Fund.”

“You are investing in the right institution: the African Development Bank,” he declared.

Rwanda’s President Paul Kagame said Korea’s experience shows a country can be radically transformed in the course of a generation. “Is there any reason Africa hasn’t become a high-income region?” he posed.

The United Republic of Tanzania President, Samia Suluhu Hassan called for investment in clean cooking agenda as part of the just energy transition. She said investment in clean cooking will lower emissions, deforestation and respiratory diseases that affect especially women and children.

“We are working with Dr Adesina (President of the African Development Bank) to fundraise for this agenda,” she said.

President William Ruto publicly acknowledged the African Development Bank’s financial innovations. He told Korea to consider channeling some of the SDRs through the African Development Bank.

Mapping the future

According to the summit organizers, 33 African heads of state and government participated at the summit, while 48 African countries had their delegations at the summit.

Over the years, Korea continues to scale up its trade relations and investment across Africaas well as the official development aid (ODA) portfolio, which supports sustainable livelihood for millions of peoples in Africa providing them accessto clean and renewable energy, agriculture productivity, technology, and skills for women and youth.
The Republic of Korea will commit $14 billion in export financing to support Korean companies investing in Africa while increasing its official development assistance (ODA) to $10 billion by 2030.

Analysts express optimism that the commitments by the leaders will drive development and prosperity in Africa and Korea that will be mutually beneficial to all partners involved in this multilateral agreements.