Africa’s rich mineral resources and its potential as a vast export market are at the top of South Korea’s agenda as it hosts a summit with Africa leaders with plans for aid on industrial infrastructure, digital transformation and improve trade relations between the two.
Africa is a “crucial partner” for South Korea to further its industrial advances and “cooperation with Africa is not a choice but a necessity”, President Yoon Suk Yeol’s deputy national security adviser Kim Tae-hyo reports Reuters.
At least 30 heads of state including President Nana Addo Dankwa Akufo-Addo are attending the first-ever Korea-Africa summit. The two -day talks which opened on Tuesday (Jun. 3) are expected to focus on trade, technology and investment.
It is the largest multilateral summit hosted under the Yoon Suk Yeol Administration to elevate the relationship between South Korea and Africa and is under the theme; The future we make together: Shared growth, sustainability, and solidarity”.
The Summit is expected to serve as a “cooperative platform for mutual prosperity, where Korea’s development experience not only contributes to Africa’s development, but also where the dynamism of Africa enhances the growth of Korea”.
Start of dialogue on critical minerals agreed
South Korea and 48 African countries agreed to establish a high-level dialogue for cooperation on critical minerals supply chains.
The agreement was reached on Tuesday, on the occasion of the first Korea-Africa Summit underway in Ilsan, north of Seoul, as announced by the Korean president Yoon Suk Yeol. The leaders and delegations who took part in the work highlighted the growing importance of mineral resources needed to fuel emerging industries such as electromobility, batteries and renewable energy.
“Recognizing Korea’s leadership in advanced industries and the importance of Africa as a region of global significance for critical mineral reserves, we emphasize the need to expand mutually beneficial cooperation and knowledge sharing, including at the ministerial level, to promote industries linked to critical minerals”, says a joint statement released at the end of Tuesday’s work
South Korean President Yoon Suk Yeol who inaugurated the first Korea-South Africa Summit, said the summit marks the beginning of a new era of cooperation between Asia’s fourth-largest economy and the African continent.
“Today’s summit will mark an important milestone in the new era of ties between South Korea and Africa,” Yoon said while addressing delegations taking part in the two-day meeting. “We hope we can promptly begin our great journey to build the future together.”
During his speech, Yoon evoked the theme of co-prosperity, pledging to enhance trade with African countries, explore new opportunities to address global crises and ensure sustainability. Yoon stressed the need for South Korea to quickly sign trade development agreements with African countries, including economic partnership agreements and the Trade and Investment Promotion Framework.
Yoon also reiterated South Korea’s decision to increase its support for Africa’s development to $10 billion by 2030, and to provide $14 billion in export financing to South Korean companies.
The president also said that South Korea will help facilitate intra-continental trade through the African Continental Free Trade Area, to create a single market for goods and services. South Korea and Africa will overcome transnational challenges together by incorporating Africa’s rich mineral resources and the continent’s young population with South Korea’s experience and advanced technology, Yoon said. The president highlighted South Korea’s efforts to position “green stairs” in Africa, such as through plans to build a geothermal power plant in Kenya and a battery energy storage system in South Africa.
“Today we live in the era of complex transnational crises,” Yoon said this morning. “Challenges arising from climate change, pandemics, natural disasters, food insecurity and supply chain instability can only be overcome through international cooperation and solidarity.” Yoon added that South Korea and African countries will join forces to ensure peace on the Korean Peninsula by respecting United Nations Security Council resolutions and the implementation of international sanctions on North Korea, in the context of growing tensions in recent weeks have marked the already stormy relations between the two Koreas.
South Korea is trying to tap into a vast and fast-growing market that is home to 1.4 billion people, the majority of whom are 25 or younger.
South Korean officials say expanding ties in the area of minerals and resources would help improve the country’s supply chain resilience in key industries such as batteries.
Trade with African nations currently accounts for less than 2% of South Korea’s total imports and exports.
South Korea’s outreach to the continent comes at a time when neighbour North Korea seeks to break out of diplomatic isolation.
South Korea is one of the world’s largest energy buyers and is home to leading semiconductor producers and the world’s fifth largest automaker making a push for electrification.
Partnering Africa with 30% of the world’s critical mineral including chrome, cobalt and manganese is crucial, Yoon’s office said.
Agreements aimed at laying the groundwork for trade and investment are expected to be signed with several countries, which will help establish the administrative foundation for freer trade and advanced customs management, Kim said.
