South Korea will provide $600 million to co-finance energy projects in Africa, alongside the African Development Bank (AfDB).
The agreement was reached with the Korean Ministry of Economy and Finance and the Export-Import Bank of Korea. The support will run for five years.
The Korea-Africa Energy Investment Framework (KAEIF) agreement has a particular focus on renewable energy. This includes generation, transmission, distribution, off-grid and mini-grid, policy reform and clean cooking. The AfDB signed a general co-operation agreement with the Korean government on May 28.
“The KAEIF demonstrates the close co-operation between the [AfDB] and Korea on the development of Africa’s energy sector. KAEIF will provide much needed additional funding, to supplement the Bank’s financing, to support accelerated energy access and the continent’s just transition to clean energy,” said Dr. Kevin Kariuki, AfDB vice president for power, energy, climate and green growth.
The Korean ministry said it would support new projects via co-financing the Economic Development Cooperation Fund (EDCF), the Economic Development Promotion Facility (EDPF) and AfDB.
Earlier in June, the AfDB launched a A$600 million ($464mn) Kangaroo bond, in the Australian dollar bond market. The bank said the bonds would support a range of its projects, including access to electricity and clean transportation.