Africa (Commonwealth) _ The 7th Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference began on Wednesday in Busan, Korea’s second-largest city, with a strong call for additional resources to assist African countries in achieving universal access to energy and transforming the continent into the world’s breadbasket.
The meeting is taking place at a time when Africa is confronted with numerous issues. Almost 600 million people on the continent do not have access to power. Furthermore, despite significant expansion across the continent, hunger remains widespread in some nations, affecting 283 million people. The war between Russia and Ukraine has increased this figure. The lasting consequences of the Covid-19 pandemic and climate change have also played a role.
Kyungho Choo, Korea’s Deputy Prime Minister and Minister of Economy and Finance, summed up Korea’s main areas for assistance to Africa as “ABC”—agriculture, bio-health, climate change, and energy transformation. He also stated that Korea intended to greatly enhance its official development support.
The African Development Bank is planning a regional operation to support West Africa’s Regional Rice Resilient Value Chains Development (REWARD) program. The Bank will provide $650 million to the 15 member countries of the Economic Community of West African States (ECOWAS) under this program.
On 750,000 hectares of irrigated land, REWARD aims for double crops and yields. One million rice farmers will benefit, with women accounting for 30% of the total. By the completion of the five-year program in 2028, overall paddy production will have increased to 10.5 million tons per year, or 53 million tons.
On this program, the African Development Bank will collaborate closely with K-Rice Belt. Korea has always been a staunch supporter of the African Development Bank Group. The country enthusiastically backed the Bank’s 2019 general capital increase.
Korea recently donated $105 million to the African Development Fund’s 16th replenishment, the largest amount ever promised to the Fund. The Korea Trust Fund and the $600 million Korea-Africa Energy Investment Framework will assist African countries in improving their energy sectors and strengthening human capacity.
Adesina stated that for African countries to collectively attain the Sustainable Development Goals by 2030, a $2.3 trillion investment was required. He cited inadequate access to power as a serious barrier, noting that it was still out of reach for roughly 600 million people.
He stated that a great deal of progress has been accomplished since the African Development Bank began its New Deal on Energy for Africa in 2016. He noted that, while the percentage of people who have access to power has risen from 35% to 56%, there is still more work to be done.
He said that Africa had immense renewable energy potential, including 11 terawatts of solar power, the most in the world, of which just 1% was exploited. Adesina also stated that the African Development Bank has made significant investments in renewable energy, with renewable energy accounting for 87% of the African Development Bank’s power generation portfolio.
He explained that the Bank would support the South African Just Energy Partnerships with a $1 billion guarantee facility from the United Kingdom, as well as efforts to develop more bankable projects through the New Partnership for Africa’s Development (NEPAD) Infrastructure Project Preparation Facility and Africa50.
“Africa’s future is bright,” said the African Development Bank president. It will be even brighter with a strong collaboration with South Korea. Let us work together to advance Africa’s growth and development. Let us achieve success together.”
The 7th KOAFEC Ministerial Conference brings together several key players in Africa’s development. This includes 33 African finance ministers and executive directors of the African Development Bank representing African member countries, as well as African ambassadors, presidents of pan-African institutions, and different non-governmental organizations (NGOs).
