The African Development Bank (AfDB), the Korean Ministry of Economy and Finance, and the Export-Import Bank of Korea have signed an agreement stating that Korea will provide $600 million in co-financing for energy investment together with the AfDB.

The Korea-Africa Energy Investment Framework (KAEIF) pact comes after the signing of a General Cooperation Agreement between the Bank and the Korean government on May 28, 2021.

The KAEIF is especially focused on renewable energy solutions in Africa which include generation, transmission, distribution, off-grid- and mini-grid, policy & regulatory reform, energy efficiency, and clean cooking projects.

To that end, the KAEIF funds will drive project preparation, capacity building, and knowledge-sharing activities through the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund.

Korea became a part of the African Development Fund and the Bank’s Capital in 1980 and 1982. In 2013, the Korean government established KOAFEC as a conduit for contributions to multi-donor and special funds managed by the Bank.

Commenting on what the investment will mean for the continent, Dr. Kevin Kariuki, the AfDB’s Vice President for Power, Energy, Climate and Green Growth, said,

“The KAEIF demonstrates the close cooperation between the African Development Bank and the Republic of Korea on the development of Africa’s energy sector.”

He also added that KAEIF will provide much-needed additional funding, to boost the Bank’s financing, support accelerated energy access especially as the continent’s transitioning to clean energy.

Also, the Korean Ministry of Economy and Finance noted that “similar to how the Korean Government prioritized the Green New Deal as its latest growth engine in the post-COVID-19 landscape, the Facility is expected to help African countries transition to green energy while simultaneously improving access to energy.”