Business and Economy
Korea Africa SummitPartnership for Growth and Development
By Kaycee Uwah
The bourgeoning strategic partnership between Republic of Korea and Africa Union (AU)with membership of 54 countries, would be further consolidated during the upcoming inaugural Korea- Africa Summit scheduled for Seoul, Korea from June 4 to 5 2024.
The summit would be attended by African heads of states and government, policy makers, business leaders and top level leaders of multilateralagencies and development finance institutionsopens a new vista in efforts by Korea towards advancing economic and development partnership with Africa, the second largest continent globally with huge resources and potential for growth.
With a good profile, currently, Africa with a population of 1.3 billion people and gross domestic product of US$3.1trillion places the continent on a good stead for growth and development with required leadership, partnership and collaboration with other countries and regions for overall development.
Korea as a leading economy in theAsia, which achieved its economic success through the bootstrap in the last half a century, continues to advanceher partnershipwith Africa, supporting on African continent’s journey to economic development and sustainable growth through trade and investment between them. Relations continue to expand exponentially as both parties mutually beneficial to all and impacts on her citizens. It is pertinent to note that Korean businesses and investment in Africa continues expands this partnershipsas the private sector and business leaders taking the lead as accelerators and drivers of economic growth.
The African Development Bank President, Akinwumi Adesina at business forum, a sideline event at the 7th Korea-Africa Economic Cooperation Ministerial Conference, in Busan, Korea in September 2023, aptly notes that the partnership between Korea and Africa is an imperative. He urged “Korean investors to seize untapped investment opportunities in Africa, especially in the energy and agriculture sectors.”
“Africa is a continent that cannot be ignored by investors,” Adesina said in an address at a business forum attended by CEOs of Korean corporations, heads of financial institutions as well as ministers and business leaders from Africa.
Reiterating that Africa has become a leading market frontier, boasting enormous potential in agriculture and renewable energy sources.
“The size of consumer expenditures is estimated to be $2.5 trillion by 2030. The African Continental Free Trade Area (AfCFTA), which is the largest in the world in terms of numbers of countries, is estimated at $3.5 trillion market size. With a population of 1.3 billion, of which 600million are young people, rapid urbanisation and rising incomes of the middle class, Africa is the leading emerging market frontier.”
The thesis by Adesina puts Africa as the leading continent for investment in several sectors offering huge opportunities, including energy and agriculture, which is expected to grow to $1 trillion by 2030.
There are arrays of Korean business and entities in Africa contributing to economic development, relations between both Korea and the continent continue to expand in leaps and bound for overall benefits of both partners.
Additionally, aside the official engagements and relations by the government of Korea and its African counterpart, the private sector from both side is strong bond of partnership impacting on investment climate in Africa creating and expanding opportunities in job creation, economic growth, and impact on communities across Africa.
It covers business, manufacturing, factories and assembly plants, distribution chains, services, mining, oil and gas exploration, and conglomerates spanningall sectors across the continent. Suffice it to say that Korean businesses and entities will continue to create hundreds and thousands of jobs that support millions of families in Africa, and support to governments in fulfilling their economic and development objectives.
Therefore, stakeholders look forward to the upcoming Summit with anticipation of defining opening new opportunities for investors on both sides – Korea and Africa to meet and forge a common front for the good of Africa’s economy, development as well as overall goodwill.
The Africa’s political and business leaders and investors will be meeting to exchange knowledge and share experiences on how to fast track Africa development trajectory in the next decades and beyond through scaling up in trade and investment, industrialisation, mining, and construction across key sectors of the economy.
Korea – Africa relations is important they have shared history and struggles of fostering economies, advancing democratic values based on the rule of law and order; nurturing thriving private sector led economy that supports inclusive growth, global partnership, peace, and security under the auspices of the United Nations and other multilateral institutions. It is instructive that South Korea would share experiences of industrialisation, technology, research and development, entrepreneurship, and inclusive growth, which stunned the world within a few years.
African private sector would have much to learn from Korea in recreating the economic development grand plan which worked for Korea across the continent. Realising that the current geopolitics points to Africa’s rising profile as the next investment destination, the Korean government decision to align with 54 African countries is a sustainable pathway for development to ramp up investment in technology hub, research and development, innovations, and manufacturing sectors for 1.3 billion people across the Continent.
The thesis by Adesina puts Africa as the leading continent for investment in several sectors offering huge opportunities, including energy and agriculture, which is expected to grow to $1 trillion by 2030.
This includes development of special agro-industrial processing zones in which the bank and partners have invested more than $1.5 billion in 11 countries.
The summit would no doubt be a milestone for Korea and Africa on the path working together to shape a sustainable future of shared prosperity as genuine partners in progress.
Uwah, a member of African Korean Economic Development Association lives in Seoul, Korea.
