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0 Korea-Africa begin first economic partnership agreement negotiations… 47 contracts/MOUs signed
Held on the occasion of the Korea-Africa Summit… Comprehensive economic cooperation begins in earnest
- Reporter nameKim Seung-hwan, Mobile Reporter Reporter
- Entered 2024.06.07 20:10
Establishment of the Economic Cooperation Committee to establish a permanent cooperation platform… Ministerial talks with 12 countries
[Kim Seung-hwan, Mobile Reporter] With the ‘Korea-Africa Summit’, the largest multilateral summit since the inauguration of the Yoon Seok-yeol administration and Korea’s first with African countries, comprehensive economic cooperation between the two sides began in earnest.
We promoted trade agreements, including the start of the first Economic Partnership Agreement (EPA) negotiations with Africa, and signed 47 contracts and business agreements with 23 countries in areas such as core minerals, new and renewable energy, and manufacturing.
In addition, a permanent cooperation platform was established through the establishment of the first Korea-Africa Economic Cooperation Committee, and mutually beneficial economic cooperation measures were discussed through a series of ministerial-level meetings with 12 countries.
Taking the Korea-Africa Summit as an opportunity, the Ministry of Trade, Industry and Energy achieved economic cooperation achievements in various fields, including 47 contracts and business agreements (MOUs) for 23 countries in the fields of energy, mineral resources, manufacturing and infrastructure, etc. with major African countries. It was announced on the 7th that plans to expand economic cooperation were discussed through relay meetings with 14 ministerial officials from 12 countries.
On the 5th, the second day of the summit, a Korea-Africa Business Summit event was held hosted by the Ministry of Trade, Industry and Energy and organized by six economic organizations, including the Trade Association, with 400 people including top officials from Korea and Africa as well as companies and experts from both countries in attendance.
The Ministry of Trade, Industry and Energy explained that through this, they put their heads together on topics such as industrialization, trade and investment, food and resource security, decarbonization and climate change, and discussed a blueprint for creating a future where Korea and Africa co-progress.
First, the Ministry of Trade, Industry and Energy signed 12 memorandums of understanding in the trade, investment and mineral fields with 11 countries to solidify the foundation for inter-governmental economic cooperation.
For the first time in Africa, the country declared the start of Economic Partnership Agreement (EPA) negotiations with Tanzania, and agreed on an EPA negotiation promotion system with Morocco, kicking off discussions on a trade agreement that goes beyond market opening and encompasses a wide range of cooperation, including supply chain, digital, and clean economy.
In addition, by signing the Trade and Investment Promotion Framework (TIPF) with eight countries, including Ghana, Malawi, Côte d’Ivoire, and Zimbabwe, where cooperative relationships are in the early stages, we are expanding the horizon of cooperation with Africa by establishing a customized economic cooperation platform without tariff concession elements. I decided to do it.
In addition, we signed a core mineral cooperation business agreement with two countries, including Tanzania and Madagascar, to strengthen our core mineral supply chain partnership with African countries to secure a reliable supply chain for Korea’s core industries such as secondary batteries.
In addition, a total of 35 contracts and MOUs (19 countries, AfDB, AfCFTA Secretariat) were signed at various occasions, including 11 at the business agreement signing ceremony between Korea-Africa institutions and companies held on the 4th by Jeong In-kyo, Head of the Trade Negotiation Headquarters. It was found that
Through this, Korea Electric Power Corporation, Korea Trade-Investment Promotion Agency, Trade Insurance Corporation, Korea Mine Reclamation Corporation, etc. are helping African countries in various fields such as small module nuclear power plants (SMR), power storage systems (ESS), trade investment, new and renewable energy, and core minerals. It is expected that cooperation will be expanded.
Our companies also step forward as partners in Africa’s economic development.
‘Hyosung’ signed a contract to supply transformers worth $30 million with the Mozambican Electricity Authority, which was invited to the Korea-Africa Business Partnership Consultation, and ‘Wisebridge’ signed a contract with Ethiopian and Kenyan companies to establish a joint venture for home appliance parts assembly plants.
A dye export contract for fabric dyeing (USD 10 million, Ohyoung) and a smart farm cooperation MOU (Egreen Global) were also signed.
In addition, the Korea International Trade Association agreed to establish the African Free Trade Area (AfCFTA) Secretariat and the Korea-Africa Economic Cooperation Committee to continue to develop Korea-Africa economic cooperation even after this summit.
AfCFTA is the single market for the African continent with a population of 1.4 billion people and a GDP of $3.4 trillion, and is the largest free trade agreement in the world, and was launched in January 2021.
AfCFTA Secretary-General Wemkele Mene has visited Korea three times over the past two years, including this summit, and has interacted with key figures from the government, institutions, and companies to seek effective ways to cooperate with Korea.
Next, Minister of Trade, Industry and Energy Ahn Deok-geun and Trade Minister Jeong In-kyo held a relay meeting with key ministerial officials invited to the Korea-Africa Summit to expand the horizons of cooperation with the Global South.
Director Chung met with the Minister of Foreign Affairs of Morocco on the 2nd, the Minister of Trade and Industry of Sierra Leone and the Minister of Communications and Technology and Innovation of the Ministry of Trade and Industry of Kenya on the 4th, the Minister of Trade and Industry of Malawi, the Minister of Trade and Industry of Côte d’Ivoire, the Minister of Trade and Industry of Tanzania, the Minister of Foreign Affairs of Rwanda, and the Minister of Trade of Kenya. We had a meeting with eight people, including the Vice Minister for Investment at the Ministry of Trade and Industry.
Through this, based on the recently concluded Trade and Investment Promotion Framework (TIPF), it was proposed to operate a cooperation platform to seek expansion of cooperation in areas such as resources, supply chain, and digital as well as trade and investment.
Minister Ahn also met with six people who attended the Korea-Africa Business Summit on the 5th, including Mozambique’s Minister of Industry and Trade, Ghana’s Minister of Trade and Industry, Nigeria’s Minister of Trade, Industry and Investment, Central African Republic’s Minister of Trade, Industry and Water Resources and Forestry, and Zimbabwe’s Minister of Foreign Affairs and Trade. .
In addition, in May of last year, Minister Ahn met again in Seoul with the Zimbabwean Minister of Foreign Affairs and Trade, whom he met when he visited Zimbabwe as Minister of Trade, and signed the TIPF proposed during the visit. In addition, he will actively engage in economic exchanges to develop friendly relations between the two countries. agreed to that.
The Korea-Africa Business Summit, jointly hosted by six economic organizations including the Korea International Trade Association (hosted by the Korea International Trade Association), Korea Chamber of Commerce and Industry, Korea Economic Cooperation, Korea Federation of SMEs and Startups, Federation of Korean Industries, and Korea Federation of SMEs and Startups, promotes industrialization and investment, increases trade and creates jobs, and promotes food and core business. About 400 people, including top Korean and African leaders, governments, businesses, and experts, attended four sessions, including strengthening mineral security, decarbonization, and responding to climate change.
In the first session held immediately after the opening ceremony, Minister Ahn attended as a representative from the Korean side under the theme of ‘Industrialization and Investment Revitalization’, and from the African side, heads of state including the presidents of Equatorial Guinea, Côte d’Ivoire, Central African Republic, Ghana, Botswana, Madagascar, and Guinea-Bissau attended. In addition, Kim Heung-soo, Vice President of Hyundai Motor Company, gave a presentation on the topic.
In the second session, under the theme of ‘increasing trade and creating jobs,’ the Korean government was represented by Minister for Trade Chung Chung, and the African side was attended by top officials such as the President of Cape Verde and the Vice President of Malawi. The director (president) gave a presentation on the topic.
LG, which produces home appliances in Egypt, proposed ways to expand trade and investment for a long-term partnership with Africa.
In the third session, under the theme of ‘Strengthening food and key mineral security,’ the Korean government was represented by Song Mi-ryeong, Minister of Agriculture, Food and Rural Affairs, and the African side was attended by top officials such as the presidents of Zimbabwe, Tanzania, and Liberia, and on the Korean side, POSCO Management Research Institute Director Park Hyun-seong. (President) gave a presentation on the topic.
POSCO presented a Korea-Africa plan for Africa to play a major role in the global resource supply chain ecosystem, while also introducing core minerals projects underway in Tanzania and South Africa.
In the 4th session, under the theme of ‘decarbonization and climate change response’, the Korean government was represented by Minister of Environment Han Hwa-jin, and the African side was attended by heads of state (level) such as the presidents of Comoros, Mauritius, Seychelles, and Kenya, the vice president of Uganda, and the prime minister of Tunisia. On our side, Doosan Energy Vice Chairman Jeong Yeon-in gave a presentation on plans to transition to carbon-free energy (CFE).
Minister Ahn said, “At a time when international solidarity is becoming more urgent amidst the crisis, the partnership between Korea and Africa provides an exemplary example to the international community of how global citizens with different languages, cultures, and religions can unite under the goal of common prosperity.” He declared that the summit and summit were closed.
Meanwhile, the Ministry of Trade, Industry and Energy plans to make visible the economic cooperation plans discussed during the summit and the results concluded, thereby supporting Korea to create a future together with Africa as a partner.
Kim Seung-hwan, Mobile Reporter Reporter shkim1031@naver.com
