Ruto champions Africa-Korea partnerships as Kenya secures Sh63 billion loan

President William Ruto has secured a Sh63 billion concessional development loan from South Korea, following talks with President Yoon Suk Yeol of Korea on the sidelines of the Korea-Africa Summit taking place in Seoul.

Ruto announced on Tuesday that part of the funds (Sh30.9 billion) will go towards the Konza Digital Media City Project, which he said will bolster Kenya's digital ecosystem, expanding opportunities for the youth in the creative economy.

"We value our strong relations with South Korea, which continues to make a significant contribution to Kenya's development, especially in technology," he said.

The Korea-Africa Summit is being held at the Korea International Exhibition Centre in Goyang, on the outskirts of the capital, Seoul.

The bilateral talks reviewed the progress of the Sh132 billion Framework Arrangement partnership agreed upon during his last visit in November 2022.

In his address to this inaugural summit, the president highlighted the pivotal role Korea can play in Africa's transformation. He emphasised Africa's urge to cultivate robust collaborations with Korean investors, leveraging its vast potential to create jobs and spur economic growth.

We value our strong relations with South Korea, which continues to make a significant contribution to Kenya's development, especially in technology.

The release of $485 million concessional development funding, including $238 million for the Konza Digital Media City Project,… pic.twitter.com/YqoCSY7RGx

— William Samoei Ruto, PhD (@WilliamsRuto) June 4, 2024

Prospering together

Identifying key areas such as food security, science and technology, peace and security, and health security for cooperation, the head of state stressed the importance of mutually beneficial partnerships.

"This summit demonstrates a resolve to elevate this relationship and mobilise the political will needed for Africa and Korea to prosper together through mutually beneficial collaborations. To do this, we must leverage our complementarities and implement win-win strategies on the basis of equal partnership," Ruto said.

The summit, themed "The Future We Make Together: Shared Growth, Sustainability, and Solidarity," was convened by President Yoon as a platform to bolster diplomatic and economic engagements between Africa and Korea.

President Ruto attended the summit in his capacity as the chairperson of the Committee of the African Heads of State and Government on Climate Change (CAHOSCC) and the African Union Champion for Institutional Reform.

The president commended Korea's commitment to aligning its strategic policies with the African Union's Agenda 2063.

"This affirms our shared vision for a prosperous future based on sustainability, mutual respect, and shared prosperity," Ruto added.

He urged Korean investors to share cutting-edge agricultural technology to enhance Africa's food production capacity, advocating for initiatives like the K-Rice Korea programme to be extended across the continent.

"Leveraging Korea's advancements in ICT, robotics, biotechnology, artificial intelligence, and quantum computing could accelerate Africa's economic transformation," he said.

Private sector's role

President Ruto further highlighted the potential of private sector involvement in stimulating growth, job creation, and innovation and underscored the significance of Korea's expertise in renewable energy and sustainable technology to unlock Africa's renewable resources, promoting green growth.

"Together, Korea and Africa can address the challenges of climate change while pursuing economic development in a manner that respects and upholds our environmental obligations," he said.

Strengthening partnerships in peace, security, and health will reinforce Africa's development agenda, with President Ruto expressing confidence in Korea's healthcare and technological capabilities.

President Ruto also urged Korea to support reforms in the international financial system to ensure equitable global development.

Proposals included enhancing contributions to the World Bank's concessional lending window and channelling Special Drawing Rights to the African Development Bank.

Additionally, the African Union proposed hosting an Africa Economic and Investment Summit to enhance engagement with the rest of the world.

The Government of Korea and Korean investors have a critical role to play in turning Africa's enormous potential into opportunity and eventually investment.

The continent's assets include a dynamic youthful and skilled population, abundant arable land, huge renewable energy… pic.twitter.com/sxT7SpdEmU

— William Samoei Ruto, PhD (@WilliamsRuto) June 4, 2024

South Korea's pledges

On his part, President Yoon said South Korea will expand trade and investment with Africa through economic partnership agreements and trade and investment promotion frameworks.

He pledged to support Africa's efforts towards regional economic integration through the African Continental Free Trade Area.

"We will speed up the signing of economic partnership agreements and trade and investment promotion frameworks. On the investment front, we will promote exchanges between the two countries' companies," Yoon said in his opening address.

President of Mauritania and African Union chairperson, Mohamed Ould Ghazouani, noted that Africa offers numerous opportunities for Korean investors.

He emphasised that the partnership between Korea and Africa will yield mutual benefits in trade, investment, and energy development.

African Union Commission Chairperson Moussa Faki Mahamt highlighted Action Plan 2022-2026, saying it comprises numerous projects and programmes ripe for Korean investment, particularly in innovation, healthcare, food security, and ICT.