Korea and Africa are expanding their economic cooperation, focusing on artificial intelligence (AI) and digital infrastructure, as they mark the 20th anniversary of the Korea-Africa Economic Cooperation (KOAFEC). An AI hub of the African Development Bank (AfDB) will be established in Korea, alongside the expansion of development cooperation projects, including 13 initiatives across seven sectors, including AI and digital technology.
The Ministry of Economy and Finance announced that the 8th KOAFEC Ministerial Meeting was held on September 9 at the Grand Walkerhill Hotel in Seoul. Officials from finance and ICT ministries of 45 African countries attended the meeting, where they discussed the theme of 'Africa's Great Transformation through AI and Digital Infrastructure.'
Based on the discussions, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol and AfDB President Akinwumi Adesina adopted the '2026 KOAFEC Joint Declaration.' They agreed to expand cooperation in various fields, including industrialization, education, health, and agriculture, centered on the AI ecosystem and digital infrastructure.
Additionally, they prepared a '2027/28 KOAFEC Action Plan' outlining cooperation directions for the next two years and approved 13 trust fund projects in seven areas: AI and digital, urban development, education and capacity building, agriculture, energy, environment, and health. Domestic AI and digital innovation institutions and companies will participate as collaborating entities in these projects.
The development cooperation framework will also be strengthened. Koo and Adesina signed a Letter of Intent (LOI) to enhance the linkage of development cooperation measures.
Both sides will utilize the KOAFEC trust fund to identify demand-driven projects and expand policy consulting and capacity building, while continuing cooperative financing between the Economic Development Cooperation Fund (EDCF) and AfDB in key areas such as AI, critical minerals, culture, and climate. They also plan to enhance joint research and policy consulting through the Knowledge Sharing Program (KSP).
A platform dedicated to Korea-Africa AI cooperation will be established. The two sides signed a Letter of Intent to establish the Korea-Africa AI Hub in Korea, aiming to connect Korea's AI capabilities with AfDB's African network to support Africa's AI transformation and bilateral AI cooperation.
Furthermore, the government's ongoing global AI hub cooperation will be expanded to include Africa. The government has been working on establishing AI cooperation centers with the World Bank (WB), Asian Development Bank (ADB), Inter-American Development Bank (IDB), European Bank for Reconstruction and Development (EBRD), and Central American Bank for Economic Integration (CABEI). The participation of AfDB will further expand the AI cooperation network with major multilateral development banks (MDBs).
Cooperation at the country level has also been specified. Koo met with Botswana's Vice President and Minister of Finance, Ndaba Gaolathe, to discuss ways to identify cooperation projects focused on the Botswana Economic Transformation Program (BETP) for industrial diversification and enhancement of critical mineral supply chains. He also discussed the smooth implementation of the 'Tanzania AI and Digital Technology Education Institution Construction Project,' the first pilot project of the K-AI package, with Tanzania's Minister of Information and Communication, Angela Jasmine Mbelwa Kairuki.
AI cooperation will also extend to the private sector. The government plans to support African startups by providing Korean GPU and NPU-based cloud infrastructure and technology through the KOAFEC trust fund, facilitating the development of AI products and services tailored to local demand in collaboration with Korean companies through the 'K-AI Cloud Voucher' program.
In Korea, companies like Ellice Group will provide AI cloud services, while HealthOnCloud and Baro AI will participate in technology and service development with African startups. Future plans include selecting additional participating companies and supporting business matching and joint ventures to connect with local commercialization.
During his opening remarks, Deputy Prime Minister Koo emphasized the three key areas of cooperation: expanding AI infrastructure, utilizing AI solutions across sectors, and nurturing AI talent, proposing to develop specific cooperation projects, including the K-AI package.
On September 10, the KOAFEC Business Innovation Forum, country-specific investment briefings for African nations, and one-on-one business meetings between Korean and African companies will be held to explore concrete investment and business opportunities.
* This article has been translated by AI.
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