Africa’s Energy sector to get financial support from Korea
BY SAMUEL NABWIISO
The Government of South Korea has promised to support the development of the energy sector in Africa; the support will be channeled through the Korean- Africa Power facility the Korean-Africa Energy Investment Facility (KEIF).
The support deal was reached on by the government of Korea and the African Development Bank during the signing of a Letter of Intent to launch the Korea-Africa Energy Investment Facility (KEIF) the facility will provide significant support to the New Deal on Energy for Africa, which aims to achieve universal access to energy.
The facility programme will be implemented by the African Development Bank, the new initiative was disclosed during the Korea-Africa Economic Cooperation (“KOAFEC”) meeting at the African Development Bank’s Annual Meetings in Busan, builds on the 2016 KOAFEC Ministerial Conference,
Under this Facility, the Bank will take the lead in project development in close consultation with Regional Member Countries. On the side of Korea, the Asian country is committed to inject about $600 million over a period of five years in both concessional and non-concessional financing.
The fund intends to finance a variety of energy operations that will support the provision of electricity for homes, schools, hospitals, agriculture and industries. The Facility will support the full range of activities – preparation, construction and operations, through a mix of financing and technical assistance.
During the same meeting, the South Korean Government also signed a Memorandum of Understanding with Power Africa to support the development of power Transmission Infrastructures like power Transmission lines
At the Occasion, the African Development Bank President Akinwumi Adesina applauded the Government of Korea for its longstanding support to the AfDB and to the African continent and welcomed Korea’s support for the New Deal on Energy for Africa.
“With this partnership between Korea and African Development Bank it will support towards achieving universal energy access in Africa.”He said after the signing ceremony
In his remarks, the Korea’s Deputy Prime Minister and Minister of Strategy and Finance, Dong Yeon Kim, stressed that Africa is struggling with shortage of power that is why Korea is strongly supports the Light up and power Africa High of the African Development Bank
“That is why Korea is coming up with the Energy facility through which the African Development Bank will be accessing financial resources from the Korean Government to finance key Energy Sectors among the African Countries” He said.