South Korea invests in African agriculture

South Korea invests in African agriculture

South Korea has pledged $155 million in concessional loans for development projects in Kenya, Uganda, Tanzania and Ethiopia. Tanzania will get $50 million for the construction of power transmission grids; Ethiopia will get a similar allocation for the development of agro-industrial parks while Uganda's share of $30 million is expected to boost agriculture and forestry conservation programmes. Kenya will get $25 million for multipurpose water resources.

The funds, which will be disbursed through the Korea Exim Bank's Economic Co-operation Development Fund and the African Development Bank, were pledged at the recently concluded fifth Korea-Africa Economic Co-operation conference in Seoul.

Analysts link South Korea's renewed engagement with Africa to its quest for food and energy security; the establishment of new markets for its manufactured goods; and the enhancement of its credentials as a prominent global power, particularly to counter North Korea's influence.

Post harvest management

"Korea can support Africa in the development of special economic zones and industrial parks, especially for light manufacturing, through public-private partnerships. Its successful experience in agricultural transformation puts it in a competitive position to support Africa's push for agro-allied industrial development," said Akinwumi Adesina, president of the AfDB at the fifth Korea-Africa Economic Co-operation conference. He pushed for investments in rural infrastructure, agro-industrial complexes, postharvest management and processing and fertiliser manufacturing.