Ministry of Finance and Economy

On September 10, the Ministry of Finance and Economy (MOFE) held the second-day events of the 8th Korea-Africa Economic Cooperation (KOAFEC)* Ministerial Conference at the Grand Walkerhill Seoul. Building on the previous day’s ministerial roundtable, where the two sides set out the direction and implementation framework for Korea-Africa economic cooperation centered on AI and digital transformation through the Joint Declaration and the 2027/28 KOAFEC Action Plan, the second day focused on translating intergovernmental cooperation into concrete business opportunities for the private sector through a business roundtable, Business Innovation Forum, Investment Promotion and 1:1 Business Meetings.   * An economic cooperation framework launched in 2006 to promote high-level economic policy dialogue and identify development cooperation projects between Korea and Africa.     1. Seeking Ways to Enter African Markets with Korean Companies   That morning, Second Vice Minister of Finance and Economy Huh Chang met with Korean institutions and companies that are either conducting business in Africa or seeking to enter African markets. During the meeting, he heard updates on their business activities in Africa, the challenges they face and their policy recommendations for identifying future business opportunities. The meeting brought together representatives from Hyundai Motor Company, POSCO INTERNATIONAL and the Korea Water Resources Corporation (K-water), among others. Participants proposed measures such as financial support, the expansion of public-private cooperation platforms and the identification of infrastructure projects linked to existing investments, while sharing specific support needs and investment ideas from the field. Vice Minister Huh said, “Based on the views shared today, we will work to turn them into practical support measures by linking various development cooperation instruments, including the KOAFEC Trust Fund and the Economic Development Cooperation Fund (EDCF).”     2. Exploring Private-Sector Cooperation from AI Infrastructure to Startups   The KOAFEC Business Innovation Forum was then held to expand private-sector participation in Korea-Africa development cooperation and discuss AI-driven industrialization. Under the theme “Africa’s AI-driven industrialization: From power and data center infrastructure to startup ecosystems,” the forum brought together around 200 representatives from governments, international organizations and businesses in Korea and Africa. In particular, around 90 Korean companies with a strong interest in investing in Africa participated in the forum to explore opportunities to enter African markets. In his welcoming remarks, Vice Minister Huh emphasized the need to turn the AI and digital cooperation discussed at the previous day’s ministerial meeting into concrete cooperation at the industry and business levels, and outlined government support measures to help Korean companies enter Africa’s AI market. He highlighted plans to support the application of Korean companies’ technologies in large-scale development cooperation projects through the K-AI Package, which combines EDCF-financed infrastructure with AI solutions, AI data centers and power supply facilities. He also stressed that the government will link various development cooperation instruments, including the KSP and the KOAFEC Trust Fund, to expand opportunities for follow-up projects.   The first session of the forum focused on ways to build essential infrastructure, including power and data centers, to support AI adoption in Africa. A range of cases from Korea and Africa were shared, covering national AI roadmaps, data center development, the use of AI in the power sector and smart customs clearance. The second session explored sustainable cooperation measures from talent development to startup support, with a focus on building an AI ecosystem that links education, technological training and entrepreneurship. Vice Minister Huh said, “I hope today’s forum will provide an opportunity for Korean and African companies to better understand each other’s technologies and needs, connect with new partners, and turn ideas in the AI sector into concrete projects and investments.”   Vice Minister Huh then met with Mozambique’s Deputy Minister of Finance Amílcar Tivane and signed a Memorandum of Understanding (MOU) on Policy Cooperation and Knowledge Sharing in the Natural Resources Sector between Korea and Mozambique. Under the MOU, the two countries will share information on natural resource-related policies and institutions, as well as the business environment, and incorporate challenges faced by businesses on the ground and their policy needs into KSP policy advisory support to enhance its effectiveness. The MOU is also expected to help translate bilateral cooperation in the natural resources sector into tangible outcomes by leveraging KSP results to identify follow-up projects and facilitate investment by Korean companies.     3. Identifying Business Opportunities through Investment and Procurement Information and Business Matching   In the afternoon, Investment Promotion and 1:1 Business Meetings were held to turn the areas of cooperation discussed at the forum into viable projects. During the Investment Promotion session, the African Development Bank (AfDB) presented its project pipeline and procurement procedures in the AI and digital infrastructure sectors to Korean companies, while participating African countries outlined their major development plans and investment opportunities. Kenya highlighted the Konza Technopolis development plan and investment environment, and Tanzania outlined plans to develop AI and digital clusters in Dar es Salaam and Dodoma. Companies also shared their investment experience in Africa, including POSCO INTERNATIONAL’s graphite mine development in Tanzania and Korea Gas Corporation (KOGAS)’s LNG development in Mozambique. Around 80 Korean companies attended the Investment Promotion, demonstrating strong interest in entering African markets.   At the 1:1 Business Meetings, Korean companies seeking to enter African markets were directly connected with representatives from African governments and organizations to discuss business needs and potential areas for cooperation across various sectors, including infrastructure, transportation and construction. In one notable case, Korea Railroad Corporation (KORAIL) explored potential cooperation in Rwanda’s railway sector with Rwandan government officials. In total, 22 Korean companies exchanged specific business information with local counterparts and identified prospective partners for future projects.   MOFE will work to turn the collaboration needs and business opportunities identified through the day’s business roundtable, Business Innovation Forum, Investment Promotion and 1:1 Business Meetings into practical results. To this end, the government will link the KOAFEC Trust Fund, the KSP, EDCF and development financing from the AfDB to develop cooperation between Korean and African companies into concrete projects.   Meanwhile, on September 11, the African delegation will take part in an industrial site visit and cultural tour, including visits to Korean AI companies and related industrial sites such as Hanwha Vision, FuriosaAI, Rebellions and Daedong Corporation. The delegation will have an opportunity to see firsthand Korea’s technological capabilities and industrial development experience and explore potential areas for future cooperation. The official program of the 8th KOAFEC Ministerial Conference will conclude with these activities. Please refer to the attached files.   

[Establishing a New Cooperation Framework to Support Korea-Africa Cooperation]   On September 9, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol and African Development Bank (AfDB) President Sidi Ould Tah signed a Letter of Intent (LOI) on Strengthening Korea-Africa Development Cooperation and agreed to further strengthen linkages between the two sides’ development cooperation instruments as KOAFEC marks its 20th anniversary. Under the LOI, the two sides agreed to expand demand-driven project identification, policy advisory support and capacity building through the KOAFEC Trust Fund; continue co-financing between the Economic Development Cooperation Fund (EDCF) and the AfDB in key areas such as AI, critical minerals, culture and climate; and strengthen joint research and policy advisory support through the Knowledge Sharing Program (KSP).   The two sides also signed a Letter of Intent (LOI) on the Establishment of a Korea-Africa AI-Hub to create a dedicated platform to sustain and advance Korea-Africa cooperation on AI. Under the LOI, an AfDB AI-Hub will be established in Korea, linking Korea’s AI capabilities with AfDB’s network across Africa to support Africa’s AI transformation and Korea-Africa cooperation on AI.   With AfDB’s participation, the government’s Global AI-Hub initiative will now extend to Africa. The government has been working to establish AI cooperation centers with the World Bank (WB), Asian Development Bank (ADB), Inter-American Development Bank (IDB), European Bank for Reconstruction and Development (EBRD) and Central American Bank for Economic Integration (CABEI). The addition of AfDB will further expand Korea’s AI cooperation network with major multilateral development banks (MDBs).   [Advancing Bilateral Cooperation with Tanzania and Botswana]   Meanwhile, Deputy Prime Minister Koo held a bilateral meeting with Botswana’s Vice President and Minister of Finance Ndaba Nkosinathi Gaolathe to discuss ways to expand economic cooperation between the two countries. The two sides exchanged views on identifying cooperation projects to promote industrial diversification and strengthen critical mineral supply chains, with a focus on the Botswana Economic Transformation Programme (BETP), as well as on utilizing various development cooperation instruments, including the KOAFEC Trust Fund and the EDCF.   Deputy Prime Minister Koo then met with Tanzania’s Minister for Communication and Information Technology Angellah Jasmine Mbelwa Kairuki to explore opportunities for further bilateral economic cooperation through a range of development cooperation instruments. Discussions focused in particular on the smooth implementation of the “Establishment of an AI and Digital Technology Training Institute in Tanzania,” the first pilot project under the K-AI Package, as well as potential areas for follow-up cooperation. The project aims to establish an advanced technology training institute to develop skilled professionals in AI, robotics, data analytics and the Internet of Things (IoT), while also providing educational and training equipment, network infrastructure and curricula. Please refer to the attached files.

On September 9, the Ministry of Finance and Economy (MOFE) held the main session of the 8th Korea-Africa Economic Cooperation (KOAFEC)* Ministerial Conference at the Grand Walkerhill Seoul. Marking the 20th anniversary of KOAFEC, the conference brought together ministerial-level officials in finance and ICT from 45 African countries to discuss the future direction of Korea-Africa economic cooperation under the theme “Harnessing AI and Digital Infrastructure for Africa’s Transformation.”   * An economic cooperation framework launched in 2006 to promote high-level economic policy dialogue and identify development cooperation projects between Korea and Africa.   1. Korea-Africa Cooperation for “AI for All”   In her congratulatory remarks at the opening ceremony, Prime Minister Han Seong Sook introduced President Lee Jae Myung’s vision of “AI for All,” emphasizing the need for solidarity and cooperation within the international community to ensure that all countries and people can benefit from the opportunities presented by AI. Building on the trust Korea and Africa have cultivated through KOAFEC over the past two decades, she proposed taking Korea-Africa cooperation on AI to the next level by combining Korea’s AI and digital capabilities with Africa’s growth potential.   Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol then outlined measures to advance Korea-Africa cooperation on AI in his opening remarks. He identified three key areas of cooperation – expanding AI infrastructure, deploying AI solutions across sectors and developing AI talent – and proposed advancing cooperation in these areas through concrete cooperation projects, including the K-AI Package.*   * A development cooperation model that combines EDCF-financed infrastructure with AI solutions, AI data centers, power supply facilities and other support in areas where Korea has strengths, including water resources, healthcare, energy, transportation and agriculture.   2. Discussing AI Applications alongside Digital Infrastructure   At the ministerial roundtable that followed, Deputy Prime Minister Koo and African Development Bank (AfDB) President Sidi Ould Tah served as co-chairs and discussed ways to apply AI across industries and public services, as well as ways to build the digital and power infrastructure needed to support its use.   In the first session, participants shared Korea’s experience in developing AI infrastructure and fostering AI talent, and explored how specific technologies and solutions, including AI-powered smart agriculture and disease diagnosis, could be applied to the agricultural and healthcare sectors in Africa. In the second session, participants exchanged views on expanding digital infrastructure, including data centers and power supply, to support AI adoption across Africa. Based on the discussions, the two sides adopted the “2026 KOAFEC Joint Declaration” and agreed to expand cooperation across a range of areas, including industrialization, education, healthcare and agriculture, with a focus on the AI ecosystem and digital infrastructure. To implement the Joint Declaration, the two sides also formulated the “2027/28 KOAFEC Action Plan,” setting out concrete directions for cooperation over the next two years, and approved 13 KOAFEC Trust Fund projects across seven areas: AI and digital transformation, urban development, education and capacity building, agriculture, energy, environment and healthcare. Korean institutions and companies specializing in AI and digital innovation will participate in these projects as partners, bringing Korea’s technologies and experience to development efforts on the ground in Africa.   3. Extending Korea-Africa AI Cooperation to the Private Sector   The KOAFEC Ministerial Conference also focused on taking Korea-Africa cooperation on AI beyond the intergovernmental level by fostering private-sector collaboration and business initiatives. As part of these efforts, a ceremony was held to present K-AI Cloud Vouchers to participating African startups. The program, supported by the KOAFEC Trust Fund, provides African startups with access to Korea’s GPU- and NPU-based cloud infrastructure and technologies and supports them in developing AI products and services tailored to local needs in collaboration with Korean companies. On the Korean side, Elice Group will provide AI cloud services, while HealthOnCloud and Varo AI, among others, will work with African startups to develop relevant technologies and services. Going forward, additional participating companies will be selected, with support provided for business matching and the establishment of joint ventures (JVs) to facilitate local commercialization. Deputy Prime Minister Koo personally presented cloud vouchers to participating African companies and visited promotional booths set up by Korean companies and institutions in the AI and digital sectors, encouraging efforts to identify business opportunities that match Korean technologies with African needs.   Meanwhile, a KSP Regional Seminar for Africa was held in conjunction with the KOAFEC Ministerial Conference to review the achievements of the Knowledge Sharing Program (KSP) in the region. With around 100 attendees, including representatives from KSP-related organizations and other participants, the seminar showcased KSP success stories supporting industrial structural transformation in Africa and discussed future directions for cooperation.   Please refer to the attached files.