The Ministry of Finance and Economy convened the 159th Economic Development Cooperation Fund (EDCF) Management Committee (chaired by the Minister of Finance and Economy) in writing and approved the project for the establishment of an AI and digital technology training institute in Tanzania, along with amendments to the regulations on EDCF operation and management.
The project aims to build an advanced technology training institute in Tanzania offering four programs in AI, robotics, data analytics and the Internet of Things (IoT) to develop skilled professionals for the country’s AI and digital industries. The project will be supported by an EDCF loan of USD 170 million.
The project comprises the construction of educational facilities and a campus; the provision of AI training and hands-on learning equipment, including AI labs, IoT devices, robotics equipment, drones and 3D printers; the development of ICT and network systems; curriculum development; and support for operation and maintenance (O&M). In particular, Korea’s AI technologies and education models will be actively applied to the development of AI labs and high-performance AI training facilities* within the institute, as well as to support for institutional operations and capacity building for education personnel.
* A digital infrastructure facility integrating AI computing resources, high-bandwidth memory (HBM), and high-speed networking.
As the project will be financed through a tied EDCF loan, under which procurement is limited to Korean companies, the financing is expected to create opportunities for Korean companies in AI, edtech, construction and related sectors to enter the African market. Furthermore, as the Tanzanian government is currently planning follow-up projects, including the establishment of additional training institutes modeled after this institute and the development of a large-scale data center, the successful implementation of this project is expected to further expand overseas business opportunities for Korean companies.
Tanzania, for its part, is strategically fostering its AI and digital industries under its national development strategy, Vision 2050, with the goal of raising GDP per capita to USD 7,000 by 2050. The project is expected to train highly skilled professionals who will help drive Tanzania’s industrial development and economic transformation. The Korean government plans to continue supporting the institute’s successful launch and sustainable operation by linking the EDCF loan with other initiatives, including the Knowledge Sharing Program (KSP), the Global AI Hub, and multilateral development bank (MDB) trust funds.
Meanwhile, the Ministry of Finance and Economy plans to approve large-scale EDCF projects worth USD 100 million or more only after deliberation and resolution by the EDCF Management Committee, with participation from relevant government ministries, while further expanding the participation of private-sector experts throughout project implementation. In line with this approach, the government highlighted that, to ensure the successful establishment and effective operation of the AI and digital technology training institute, Second Vice Minister Huh Chang held discussions with private-sector experts in development cooperation and AI to directly seek their views and recommendations.
In addition, the government revised relevant regulations to enhance the transparency and fairness of EDCF projects while facilitating the implementation of the K-AI Package. The revisions provide a basis for the Korean government to propose projects to developing country governments after gathering input from relevant ministries, and also stipulate which feasibility studies are subject to approval and the criteria for such approval. The government also strengthened the EDCF framework by requiring an annual review of the appropriateness of the EDCF interest rate structure and the implementation of necessary measures.
With this approval, the government plans to further accelerate efforts to identify new projects under the K-AI Package and continue pursuing measures to strengthen the transparency and fairness of EDCF operations, including by promoting greater involvement of private-sector experts and relevant government ministries.
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