South Korea backs AfDB with $600m for energy projects

0
3168
Solar Panels on dusty land

New co-financing deal will focus primarily on renewable energy across Africa.

The Korean Ministry of Economy and Finance, and the Export-Import Bank of Korea, have committed $600m in co-financing for energy projects alongside the African Development Bank (AfDB).

The new Korea-Africa Energy Investment Framework (KAEIF) pact follows the signing of a general cooperation agreement between the bank and the Korean government in May. The KAEIF will help to finance renewable energy solutions in Africa, with projects that include generation, transmission, distribution, energy efficiency, clean cooking and off-grid and mini-grid projects.

Dr. Kevin Kariuki, the AfDB’s vice president for power, energy, climate and green growth, welcomed the news, saying: “The KAEIF demonstrates the close cooperation between the AfDB and the Republic of Korea on the development of Africa’s energy sector. KAEIF will provide much needed additional funding to supplement the bank’s financing, to support accelerated energy access and the continent’s just transition to clean energy.”

This new agreement is the Korean Ministry of Economy and Finance’s latest growth engine in the post COVID-19 landscape. It expects that the facility will help African countries transition to green energy while simultaneously improving access to energy for people presently living without any.

A recent report found that co-financing of this sort helped to boost multilateral development bank sustainability financing around the world by $85bn in 2020.