Setting the stage for co-prosperity with Africa

The summit was a very meaningful step toward creating opportunities for the future of Korean companies and paved a way for co-prosperity with Africa.

Cho Won-binThe author is a professor of political science at Sungkyunkwan University. The Korea-Africa Summit was successfully held in Seoul on June 4 and 5 under the theme of “The Future We Make Together: Shared Growth, Sustainability and Solidarity.” The summit is the largest international event organized by the Yoon Suk Yeol administration and the first multilateral summit Korea has held with Africa.

Of the 55 African Union member states, 48 responded to Korea’s invitation, with the countries under sanctions for reasons such as military coup not joining. Heads of state from 25 countries attended the event in person, and 33 countries were represented by head-of-state-level delegates. President Yoon held bilateral meetings with all 25 heads of state. This was unprecedented for large-scale summits with Africa. The government demonstrated its commitment to strengthen relations with the continent through this event.

Why Africa? Long considered an aid recipient, Africa has recently gained global attention for its possibility for change and economic potential. Of its population of 1.4 billion, 60 percent are under the age of 25. About 30 percent of the world’s mineral resources, including 52 percent of cobalt, an essential material in electronic vehicle batteries, are buried in Sub-Saharan Africa. With the launch of the African Continental Free Trade Area (AfCFTA) in 2021, Africa is growing into a huge single market with a GDP of $3.4 trillion.

Politically, Africa’s 54 countries make up more than a quarter of the 193 member states of the United Nations, and they are the core of the “Global South” group on the international stage. This is why many around the world, starting with the European Union and China in 2000 and then the United States, Japan and India, competitively host a summit with Africa.

On the occasion of the latest summit in Seoul, Korea and African countries solidified the framework for economic cooperation. In particular, two memoranda of understanding (MOUs) on core mineral cooperation, six Trade and Investment Promotion Frameworks (TIPFs), three MOUs on infrastructure and mobility cooperation and an MOU on medical and healthcare cooperation were signed. In addition, twelve treaties and agreements were signed on renewable energy and ICT cooperation as well as a free aid agreement on building a rice seed production complex.

Leaders of Korea and Africa also agreed to increase Korea’s official development assistance (ODA) to the continent to $10 billion by 2030 as a cornerstone of cooperation. Furthermore, $14 billion in export financing will be provided to Korean companies by 2030 to encourage activity in Africa, thus stimulating trade and investment with countries on the continent.

The key interest of the African leaders was also the Korea-Africa Business Summit, held on the sidelines of the official event. The business summit was a large-scale economic event that brought together key government and business figures and experts to present and discuss issues of interest to Africa, such as industrial development, trade promotion, infrastructure improvement, agricultural productivity improvement and responses to climate changes. The event was attended by African Union Commission Chair Moussa Faki Mahamat, Secretary General of the AfCFTA Secretariat Wamkele Mene, Hyundai Motor Group Chairman Chung Eui-sun and other corporate leaders and heads of economic organizations in Korea.

The Korea-Africa Summit also provided an opportunity to address the challenges that Korean companies faced when they were entering Africa. Korean conglomerates are doing business in Africa and many small and mid-size companies are also paying attention to the potential of the continent. It is important to reduce the uncertainty they experience in Africa and psychological distance with the continent.

In this regard, Korean companies’ efforts are noteworthy. Hyundai Motor Group is exploring a long-term cooperation plan with the School of Oriental and African Studies, a research university in London. The conglomerate is also successfully carrying out global social contribution activities to help Africa become self-sustainable by providing infrastructure and growth programs to regions in need.

The Korea-Africa Summit and the Business Summit ended successfully. Now is the time for Korea and African countries to think about how to expand their economic territories and realize the three agendas of the summit — shared growth, sustainability and solidarity. Korea can develop new markets in Africa, and Africa waits for investment from Korea for its own economic development. The summit was a very meaningful step toward creating opportunities for the future of Korean companies and paved a way for co-prosperity with Africa.

Translation by the Korea JoongAng Daily staff.