While South Korea seeks to expand its presence in Africa, its pointed policies may risk it being labelled with the “neo-colonial” tag
.png)
Source: Reuters
The Korea-Africa Summit held from 4-5 June 2024 was a significant event for both partners. The Summit aimed to elevate cooperation under the theme ‘The Future We Make Together: Shared Growth, Sustainability, and Solidarity.’ It was co-chaired by Korean President Yoon Suk-yeol and Mauritania President, Mohamed Ould Ghazouani, the current chair of the African Union (AU). It was attended by 48 African delegations, including 25 leaders, without following the Banjul format with AU acquiescence.
This was the first-ever Korea-Africa Summit. South Korea is not among Africa's leading partners nor is the Summit in its regular schedule. Since 2021, the AU held regular summits, or ministerial meetings with China (2021) and is scheduled to hold them again this year. With Japan, it held TICAD in 2022 and will hold it again this year. It held a summit with the EU in 2022 and one with Russia in 2023. Although the Arab summit had failed to take off, one with Saudi Arabia was held in 2023.
The more irregular summits with Saudi Arabia, Türkiye (2021), the United States (2022) and now with Korea were held, even though those with India, the Arab League and Latin America which are regular summits for the AU are in abeyance.
The major focus of the summit was enhancing economic ties and cooperation in supply chains. A focus on developing the resource-rich African countries emerged. President Yoon emphasised the importance of expanding trade and investment in Africa and they signed a host of agreements to pursue this. South Korea pledged a new ODA of US$ 10 billion by 2030 and US$14 billion in export financing to support Korean companies’ activity in Africa. This marks Korea's interest in supporting export financing and supporting Korean projects in Africa with specific objectives.
The focus is on critical minerals, digital transformation, climate change, food security and public health. A Korea-Africa Critical Minerals Dialogue is to be inaugurated this year. This will facilitate exchanges of information and expertise in the extraction and processing of critical minerals.
South Korea pledged to support economic integration in Africa and the Africa Continental Free Trade Area (AfCFTA) to help build the capacity of customs authorities and establish a One-stop Origin Management System (OOMS) as part of the efforts to strengthen economic cooperation.
Other elements of people-to-people cooperation were a higher number of scholarships and the establishment of more vocational training institutes in Africa. Promotion of exchanges in various fields, including government officials, business leaders, civil society representatives, and parliamentarians, to increase mutual understanding and strengthen solidarity is envisaged.
An emphasis on dealing with global challenges such as climate change, food security, supply chain disruption and health crisis were mentioned in the joint declaration.
Korea is now set to expand its 21 embassies in Africa. Six of its missions are in North Africa, four each in East, South and Central Africa, while the remaining three are in West Africa. Its financial assistance is mainly through the Africa Development Bank (AfDB).
Korea is now set to expand its 21 embassies in Africa. Six of its missions are in North Africa, four each in East, South and Central Africa, while the remaining three are in West Africa. Its financial assistance is mainly through the Africa Development Bank (AfDB).
South Korea was encouraged to contribute more to the imminent 17th replenishment of the African Development Fund, the concessional window of the AfDB, as well as to the Alliance for Green Infrastructure in Africa (AGIA)—a new initiative, jointly between the AU and Africa50, to mobilise private financing for African green infrastructure. The US$115.4 million-Korea-Africa Economic Cooperation (KOAFEC) Trust Fund (KTF), established by Korea in 2007, is the largest among the AfDB’s 17 active bilateral trust funds.
However, in direct trade and investment, South Korea continues to lag. Unless this is improved, their efforts to woo Africa as a whole will not succeed.
There is barely a mention of trade figures in the Summit discussions, at the associated business forum or in the joint statement. Only the AUC Chairman spoke about it. While Asia has 40 percent of African trade, it is merely 2 percent of Korea's global trade. 1.2 percent of these are exported from Korea to Africa with the imports from Africa being minimal. Korea does not figure in the top trading partners of Africa. Now, as it looks at a greater push towards the Global South, its industry wants greater support for its automobiles, electric vehicles semiconductors and related manufacturing for which critical minerals are important. What the Europeans did in the 20th century, followed by China, Korea now aims to do by setting in motion a new partnership with Africa, largely focused on critical minerals.
Their interest would therefore go to those countries from where the minerals can be imported. Zambia, DR Congo and Ghana were particularly in focus. Korean development cooperation support is likely to be targeted there. Because there is no Pan-African critical minerals policy, the effort is to create a paradigm of cooperation which makes Korea appear to be a partner. In reality, Korea will have to cross-check its ambitions so that it does not acquire the ‘Neocolonial’ tag.
Some of the heads of government who were there had bilateral engagements too. Tanzania has been offered an economic partnership agreement as have Morocco and Kenya. Tanzania US $25-billion loan for five years from the Korean Economic Development Cooperation Fund (ECDF). Tanzania signed two accords granting South Korea access to its ocean resources and minerals such as nickel, lithium, and graphite important for clean energy technologies. An infrastructure development MoU was signed with Rwanda and Ethiopia. A US$1 billion financing facility was signed with Ethiopia. Rwanda signed a US$ 66 million loan for the power sector. 47 agreements with 23 countries for projects and minerals were signed.
Trade and Investment Promotion frameworks and DTAAs were signed with eight African countries, including Ghana, Malawi, Rwanda, and Zimbabwe.
Trade and Investment Promotion frameworks and DTAAs were signed with eight African countries, including Ghana, Malawi, Rwanda, and Zimbabwe.
The Summit decided to revitalise the activities of the Korea-Africa Economic Cooperation Conference and the Korea-Africa Agriculture Ministers Meeting. These will periodically review and follow up on the promises made at the conference. The summit concluded with a joint statement from President Yoon and President Ghazouani. It drew ‘complementarity between Korea's vision of serving as a 'Global Pivotal State' and Africa's vision of an integrated, prosperous and peaceful Africa, as encapsulated in the African Union’s Agenda 2063’. They expressed determination to build a future together based on a strong and mutually beneficial partnership structured around three pillars: Shared growth, sustainability, and solidarity.’
Cooperation on ‘smart infrastructure fields, such as smart cities and intelligent transportation systems’, and integrate of digital technologies spanning various sectors of cooperation including agriculture and healthcare could prove useful. Korea’s ‘Tech4Africa Initiative’ which aims at enhancing the digital capabilities of the youth in Africa is aimed to be set up. These initiatives will help nurture youth which is the driving force for the development of the African continent.
East African leaders—Presidents Ruto of Kenya, Samia Hassan of Tanzania, Kagame of Rwanda and UgandanVice-President Alupo sought mineral processing technology transfers, balanced trade, and multilateral debt reduction as issues critical for their economies. The Korean commitment however was directed at the ‘Tech4Africa Initiative’ capacity building and not at the commercial transfer of mineral processing technologies.
The Declaration also intends to ‘strengthen international cooperation to create a climate finance architecture responsive to Africa’s needs.’ The application of advanced agricultural technologies for climate change adaptation, by expanding irrigation facilities is envisaged. At a high-level side event on agriculture, several examples of successful cooperation so far were related. African leaders explained their needs and policies. The bar was high.
Korea has had a low-key yet pointed policy towards Africa. It has never sought the continent for strategic concerns or development cooperation. It has only penetrated Africa for focused exports, particularly of automobiles and engineering products. When it required African political support for votes in the UN or its bodies, it focused on those countries who have a vote for that matter.
Korea has had a low-key yet pointed policy towards Africa. It has never sought the continent for strategic concerns or development cooperation. It has only penetrated Africa for focused exports, particularly of automobiles and engineering products.
The most brilliant example of this was how they wooed the three African countries on the UN Security Council in 2006 to elect Ban Ki-Moon as the UN Secretary-General. Korean interest in Africa shows it to be a latecomer to the continent but that does not hold back its objectives. They intend to establish proper supply lines and if possible, supply chains for critical minerals for Korean industry. The Summit helped to secure the rights to minerals of choice and support the countries who provide that, with largesse. It is not a Pan-African effort. As the Mo Ibrahim Foundation notes:
‘The persistence of the commodity-led export model indicates that while Africa's trade partners have shifted, the underlying economic structure has not undergone significant changes. If the continent continues to rely heavily on exporting raw materials and importing finished products, it will hinder its economic diversification and development’. Korea needs to be cautious about this but they lack a diplomatic presence in most of Africa and hence development cooperation remains limited.’
Gurjit Singh has served as India's ambassador to Germany Indonesia Ethiopia ASEAN and the African Union.
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.
Gurjit Singh has served as Indias ambassador to Germany Indonesia Ethiopia ASEAN and the African Union. He is the Chair of CII Task Force on ...
Read More +
PREV
