South Korea Lends BILLIONS of Dollars to Tanzania

5 June 202412 June 2024 Scooper Man 94 Comments Reviewed

South Korea has been confirmed by both Tanzania and Ethiopia as providing loans of billions of dollars. The loans for 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.

The East African 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.

In other news, Tanzania’s government has refuted claims that security guarantee was included in the issuance of 2.5bn US dollars (about 6.7tri/-) loan from the Republic of Korea.

Chief Government Spokesman Mr Mobhare Matinyi made it clear on Tuesday following the widespread information on the social media platforms on Monday purporting that Tanzania secured the loan after meeting ‘tight’ conditions.

“The government has not mortgaged anything or any property because this loan does not have any conditions to require security of any kind,” said Mr Matinyi on Tuesday at a press conference where he said that the information spread on the internet by some media that the government mortgaged part of the sea is a misrepresentation.

He said that during President Samia’s visit to the Republic of Korea she witnessed the signing of only three documents which are the contract, and Memorandum of Understanding (MoU) and a declaration of partnership agreement between the two countries.

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