The African Export-Import Bank (Afreximbank) and the Export-Import Bank of Korea (KEXIM) have entered into a memorandum of understanding (MOU) expected to inject $100 million to support trade between Africa and South Korea.
Under the terms of the MOU signed by Afreximbank President Dr. Benedict Oramah and his KEXIM counterpart, Dr. Lee Duk-Hoon, KEXIM will make available a credit line of up to $100 million to Afreximbank to support trade transactions between South Korea and the African continent as part of a commitment by the two institutions to cooperate in matters of common interest.
Afreximbank and KEXIM will also explore the possibility of establishing other financing schemes to promote trade between South Korea and Africa.
Speaking during the signing ceremony, Dr. Oramah described the line of credit as very timely, given Afreximbank’s current focus on financing the import of investment goods to accelerate the structural transformation of African economies.
“We look forward to using the funding to pursue the urgent needs of our continent,” he said.
Dr. Lee, on his part, noted that in spite of current economic challenges facing most African economies, the growth prospects for the continent remained positive. He stressed the need for the two institutions to deepen their collaboration in order to boost trade and investment relations between South Korea and Africa.
Established in 1976, KEXIM supports South Korea’s export-led economy by providing loans and financing mega projects, thereby facilitating economic cooperation with other countries and regions.
In 2015, Africa’s imports from South Korea stood at approximately $9.8 billion compared to $13 billion in 2014 while the continent’s exports to South Korea amounted to $5.8 billion in 2015 and $7.9 billion in 2014.
