Seoul. Tanzania and South Korea have agreed to accelerate the implementation of a $2.5 billion commitment by Seoul to support strategic projects aimed at driving economic growth and development across several sectors, including transport infrastructure, technology, culture, manufacturing and health.
Minister for Finance Ambassador Khamis Mussa Omar said the agreement was reached in Seoul on the sidelines of the Korea-Africa Economic Cooperation (KOAFEC) Ministerial Meeting, where he led the Tanzanian delegation in talks with Korea Eximbank, the implementing agency for the country’s Economic Development Cooperation Fund (EDCF).
Ambassador Omar said Tanzania valued South Korea’s development cooperation but stressed the need to improve implementation of jointly agreed projects under the EDCF.
He said delays by either side could undermine the commitments made, calling for closer coordination and concerted efforts to address delays in project implementation, feasibility studies and detailed engineering designs.
“Some projects have taken several years before implementation could begin,” he said.
The talks followed the Korea-Africa Economic Cooperation Ministerial Meeting, where ministers, among other issues, discussed cooperation in artificial intelligence (AI) to support Africa’s development.
Ambassador Omar said the two sides had agreed to closely monitor projects pledged during President Samia Suluhu Hassan’s 2024 visit to South Korea.
Among the projects expected to begin implementation soon is the construction of a Smart ICT College in Dodoma.
Other projects discussed included the construction of an International Conference and Exhibition Centre in Zanzibar, the construction of Binguni Referral Hospital and the development of Muhimbili National Hospital.
The two sides also discussed the construction of the Ifakara-Mahenge road, which is linked to graphite mining activities.
On the planned procurement of passenger coaches for the Standard Gauge Railway (SGR), the two sides agreed to jointly review the project’s cost and scope to ensure efficient implementation.
The talks concluded with both sides pledging closer cooperation to ensure all agreed projects are completed on time.
Tanzania seeks Korean investment in digital economy
Meanwhile, Minister for Communication and Information Technology Angela Kairuki said Tanzania used the KOAFEC meeting to promote investment opportunities in innovative technologies that could accelerate economic growth, create jobs and increase government revenue through taxation.
She invited South Korean investors and technology companies to invest in Tanzania’s digital infrastructure, including data centres, expansion of 5G networks, wider access to fibre-optic connectivity and the construction of telecommunications infrastructure such as mobile towers.
“I have also invited them to invest in e-government and explore how they can work with our e-Government Authority and the ministry to improve various public services, including social, education and health services, through digital systems,” Ms Kairuki said.
She said Tanzania was also seeking investment in financial technology, health and medical technologies, as well as technologies that could support agricultural production and the entire agricultural value chain.
Ms Kairuki also highlighted the need for capital to support the Tanzania Telecommunications Corporation (TTCL), including investment in fibre infrastructure, TTCL shops and mobile services.
She said investors had expressed interest in investing and partnering with Tanzania in these areas.
“Tanzania is blessed with a large population of young people, and what we want is to turn this youthful population into an advantage for the nation and the economy,” she said.
“That is the major commitment and ambition of President Samia and the Sixth Phase Government—to explore ways of attracting these opportunities to the country so that they can create jobs for our people.”
Focus on AI and digital infrastructure
This year’s KOAFEC Forum, held under the theme “Harnessing AI and Digital Infrastructure for Africa’s Transformation”, was organised by South Korea’s Ministry of Economy and Finance, the African Development Bank (AfDB) and Korea Eximbank.
The forum brought together African ministers responsible for economic and financial affairs, AI and digital transformation, AfDB officials, African companies and international development partners.
The meeting focused on how artificial intelligence and digital infrastructure can be harnessed to accelerate Africa’s development, with discussions centred on investment, development financing, technological innovation and strengthening economic cooperation between South Korea and African countries.
