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Korea will provide $600m for energy projects in Africa via the KAEIF facility.
- The funds will focus on clean energy development.
- The funds will accelerate energy access and promote clean energy transition.
The African Development Bank (AfDB), the Korean Ministry of Economy and Finance and the Export-Import Bank of Korea have signed an agreement to provide $600 million in co-financing for energy projects.
The Bank had last month signed a General Cooperation Agreement with the Korean government. The current agreement, the Korea-Africa Energy Investment Framework (KAEIF), will focus on clean energy projects in Africa in the following sub-sectors; generation, transmission, distribution, off-grid- and mini-grid, policy & regulatory reform, energy efficiency and clean cooking projects.
The AfDB’s Vice President for Power, Energy, Climate and Green Growth, Dr Kevin Kariuki, noted that the KAEIF demonstrates the close cooperation between the African Development Bank and the Republic of Korea on Africa’s energy sector development. “KAEIF will provide much needed additional funding to supplement the Bank’s financing, to support accelerated energy access and the continent’s just transition to clean energy,” he added.
The Korean Ministry of Economy and Finance noted that the KAEIF would help African countries transition to green energy while simultaneously improving access to energy. The funds will also support project preparation, capacity building and knowledge-sharing activities through the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund. The Korean government set up KOAFEC in 2013 as a vehicle for contributions to multi-donor and special funds managed by the Bank.