South Korea agrees to lend billions to Tanzania, Ethiopia

Tanzania President Samia Suluhu Hassan holds talks with host President Yoon Suk Yeol in Seoul, South Korea on June 2, 2024. IKULU

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Tanzania and Ethiopia said they had signed accords with South Korea for loans of

billions of dollars, part of broader deals that will give the Asian nation access to Africa's crucial mineral resources and vast export market.

South Korea is hosting at least 30 heads of state, including Tanzania and Ethiopia, at a South Korea-Africa summit this week.

Tanzania said it will borrow $2.5 billion over the next five years from South Korea through concessional loans.

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The country also signed two accords on Korean use of its ocean resources and minerals used in clean energy technologies such as nickel, lithium and graphite, presidential spokesperson Zuhura Yunus said on Sunday.

Ethiopia, a fast-growing economy with 126 million people, signed a $1 billion financing deal over four years for infrastructure, science and technology, health and urban development, the state-affiliated Fana media outlet said.

Tanzanian President Samia Suluhu Hassan is also seeking cooperation in sectors including sustainable use of ocean resources, development of natural gas deposits and creative industries, and for Tanzania to supply labour to South Korea, according to Yunus.

Since Friday, South Korean President Yoon Suk Yeol has held meetings with the leaders of Sierra Leone, Tanzania and Ethiopia and was due to meet separately with heads of other states including Zimbabwe, Togo, Rwanda and Mozambique on Monday.