South Korea to provide billions in loans to East Africa for natural wealth access

East Africa is set to tap into South Korean funds, as the Asian country looks to expand its access to natural wealth. A recent report revealed that South Korea has set its sights on the East African region, particularly Ethiopia and Tanzania for resources. In exchange for East Africa’s natural wealth, South Korea has agreed to disburse loans to some countries in the region.

A report by The East African showed that Ethiopia and Tanzania verified the execution of accords with South Korea for billions of dollars in loans, as part of a larger commitment that will provide the Asian nation access to Africa's critical natural riches and massive export market.

Tanzania noted that it had agreed on a concessional loan with South Korea worth $2.5 billion spanning five years. Tanzania also inked two agreements on Korean use of its maritime resources and minerals used in clean energy technology like as nickel, lithium, and graphite, presidential spokesman Zuhura Yunus said on Sunday.

The president of Tanzania also disclosed her intentions to collaborate with South Korea in areas such as sustainable use of ocean resources, development of natural gas deposits, and creative industries, while also supplying labor to the Asian country.

This is hardly the first time Tanzania has collaborated with South Korea on developmental projects. In November 2022, the Tanzania Startup Association (TSA) and the Korean Startup Forum (KSF) signed a memorandum of understanding (MoU) to champion a mutually beneficial partnership between both parties.

On the other hand, Ethiopia confirmed the signing of a $1 billion financing deal over four years to aid in sectors such as infrastructure, science and technology, health, and urban development, as reported by the state-affiliated Fana media outlet.

This information is coming off the heels of the South Korea-Africa summit this week, in which over 30 heads of state were invited.

The South Korean president, Yoon Suk Yeo, has sat down with several African leaders since Friday including the leaders of Sierra Leone, Tanzania, and Ethiopia.

He was scheduled to meet separately with heads of other states including Zimbabwe, Togo, Rwanda, and Mozambique on Monday.

This article originally appeared on Business Insider Africa.