Tanzania and South Korea have signed a framework agreement that will provide Tanzania with $2.5 billion in concessional loans from the Economic Development Cooperation Fund (EDCF) over the next five years. This agreement was signed during President Samia Suluhu Hassan’s official visit to South Korea at the invitation of President Yoon Suk Yeol.
Beyond the EDCF agreement, the two countries also signed several other agreements aimed at bolstering cooperation in critical minerals, the blue economy, and trade. A joint statement was signed to launch negotiations for an economic partnership agreement (EPA), which will elevate Tanzania-Korea economic ties to a strategic level and enhance partnerships in trade, investment, transport, and industry.
Tanzania welcomed South Korea’s decision to double the EDCF facility’s resources to Tanzania and sought enhanced cooperation in the blue economy and natural gas development. The two countries also explored cooperation in the creative industry, particularly film and arts, and discussed Tanzania’s potential to supply labor to the Korean industry through the employment permit system.
A Memorandum of Understanding (MoU) on strategic minerals was signed to enhance cooperation in geological surveys, mining investments, and the beneficiation of critical minerals such as nickel, lithium, and graphite. This partnership aligns with South Korea’s efforts to secure new sources of critical minerals for its manufacturing industries.
The EPA agreement will enable Tanzania and South Korea to elevate their economic relationship to a strategic level and expand cooperation in various sectors. Tanzania will become the third African country to enter into negotiations for an economic cooperation agreement with South Korea.
Source: IPP Media
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