Faith Nyasuguta
Tanzania and Ethiopia have announced significant loan agreements with South Korea, part of broader deals aimed at securing access to Africa’s vital mineral resources and expansive export markets.
South Korea is currently hosting a South Korea-Africa summit this week, attended by at least 30 heads of state, including representatives from Tanzania and Ethiopia.
Tanzania disclosed plans to borrow $2.5 billion over the next five years from South Korea through concessional loans. Additionally, the country signed two agreements allowing Korean access to its ocean resources and minerals crucial for clean energy technologies, such as nickel, lithium, and graphite, according to presidential spokesperson Zuhura Yunus on Sunday.
Ethiopia, a rapidly growing economy with a population of 126 million, signed a $1 billion financing deal spanning four years. This agreement focuses on infrastructure, science and technology, health, and urban development, as reported by the state-affiliated Fana media outlet.
President Samia Suluhu Hassan of Tanzania aims to foster cooperation in sustainable ocean resource management, develop natural gas deposits, promote creative industries, and explore opportunities for Tanzanian labor to work in South Korea, Yunus added.
Since Friday, South Korean President Yoon Suk Yeol has engaged in discussions with leaders from Sierra Leone, Tanzania, and Ethiopia. He is scheduled to meet separately with heads of state from other countries, including Zimbabwe, Togo, Rwanda, and Mozambique on Monday.
Following a partnership with South Korea, earlier this year, Tanzania welcomed the arrival of the first batch of electric locomotives for its newly constructed standard gauge railway (SGR), scheduled to begin operations in July. The shipment included five electric multiple unit trains and three passenger coaches sourced from Hyundai Rotem in South Korea.
These advanced trains, capable of accommodating up to 589 passengers and reaching speeds of 160 km per hour, represent a significant upgrade to Tanzania’s transportation infrastructure. They feature amenities like Wi-Fi, designated seating for passengers with special needs, air conditioning, and CCTV cameras for enhanced security, designed with passenger comfort and safety in mind.
This acquisition marked a substantial investment in Tanzania’s railway system, aimed at enhancing efficiency, safety, and convenience for commuters.
The partnership with Hyundai Rotem materialized through a $295.74 million agreement signed on July 14, 2021. This encompassed the procurement of 17 locomotives, 10 sets of electric multiple units (EMUs), and an electric locomotive simulator, demonstrating Tanzania’s commitment to modernizing its railway infrastructure.
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