- South Korea has entered into an agreement with AfDB to invest in renewable energy in Africa
- The $600 million financing is to be invested through KAEIF on solutions including renewable power generation, transmission, distribution, off-grid and mini-grid segments
- Other areas of financing include project preparation, capacity building and knowledge-sharing among others
Renewable energy solutions in Africa, including those related to generation, transmission, distribution, off-grid and mini-grids, will be focus of a $600 million financing approved by the South Korean government to be executed under the Korea-Africa Energy Investment Framework (KAEIF).
South Korea will invest in these energy projects alongside the African Development Bank (AfDB), under an agreement signed between the Korean Ministry of Economy and Finance, and the Export-Import Bank of Korea. Along with the above areas, KAEIF also invests in policy & regulatory reform, energy efficiency and clean cooking projects.
Another area where the funds will be deployed include project preparation, capacity building and knowledge-sharing activities through the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund.
According to the South Korean government, the $600 million facility is aimed at helping African countries transition to green energy while also improving access to energy. The proceeds will supplement the AfDB’s financing to support accelerated energy access and continent’s just transition to clean energy, said AfDB’s Vice President for Power, Energy, Climate and Green Growth.