Thursday, June 13, 2024
HomeNewsEthiopia, South Korea sign a $1billion financial deal to fund projects

Ethiopia, South Korea sign a $1billion financial deal to fund projects

Ethiopia South Korea  _ news
Image credit : MFAE

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Toronto – South Korea was hosting the South Korea-Africa summit; over thirty African nations have attended it including Ethiopia and neighboring Eritrea.  Ethiopia was one of the countries that participated in the Korean War in the 1950s on the part of South Korea which laid a foundation for the relation between the two countries. 

Ethiopia’s Prime Minister Abiy Ahmed seized the occasion to make a state visit on the sidelines of the summit. 

A Memorandum of Understanding for a financial deal of $1 billion is signed between the two countries, according to Ethiopian State-owned media outlets. South Korea is to make the funds available for Ethiopia in the form of loans over the next four years. 

The fund will finance projects to be completed over the next four years. Infrastructure, science and technology, health, and urban development projects are areas that will be funded with the loan. No further specific detail is specified about the projects or their location.

The rate of interest or what South Korea is getting in return for making the finance available for Abiy Ahmed’s administration is not specified. Referring to the financial agreement with Ethiopia and Tanzania, Reuters reported that South Korea will get “access to Africa’s crucial mineral resources and vast export market.” 

Ethiopia’s Minister For Finance, Ahmed Shide, and his South Korean Counterpart,  Kim Byoung-hwan, signed the agreement. A report by the Ministry of Foreign Affairs of Ethiopia said Ahmed Shide urged South Korea to “increase financial support to Ethiopia” by highlighting the financial reform measures in the country.  South Korea is cited as saying that it  “is keen to provide Ethiopia further financial assistance.” 

Prime Minister Abiy Ahmed’s administration has introduced a range of core neoliberal economic policy measures over the past few years but the policies were packaged as “Home Grown” policy measures. The Telecom and Banking sectors are open to foreign investors. Recently, the administration also disclosed its intention to allow foreigners to own property in Ethiopia. 

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2 COMMENTS

  1. The door should be wide open for South Korean investors along with those from Singapore and Taiwan. Now we’re talking!!!

  2. There is always a question we, the more fortunate in our Diaspora, should ask ourselves. What can we ourselves do to help the old country that produced us all to industrialize itself? I am not asking all of us who have the required resources to go back. For many of us and various legitimate reasons it may be prohibitively difficult to return. But we can always make a useful return by making our assets available to those still inside the country to open businesses that create jobs for the desperately unemployed. Many of us have already done that by giving financial and know-how assistance in opening businesses and factories to relatives and others we know very well to have the entrepreneurial skills. Opening factories can be a tall order for most of us financially but we still can play a part in that role by lobbying companies to open factories there and also by putting together our resources among friends and open small factories of our own. Some of us have done that or at least tried to do that already for decades now.

    I am a big believer of industrialization and the spread of factories throughout the country because I had seen first hand what that did to other countries going back to the 1970’s. Industrialization have the means and power to create sizable middle class in a society. It ushers a new way of thinking for the citizens. It shapes up a new outlook makeup in the citizens psyche. They don’t need someone else to give them answers to what, why and how questions they may have. This is the middle class our commies have been bedeviling since 1960’s even before it began taking deep roots in that region. Middle class is a tough cookie for connivers. It knows how to single out a lonely cross eyed bee among a swarm of millions.

    The other windfall from major industrialization is its role in liberating the women currently in bondage. It has the wherewithal to create a vast middle class of women which will play a big role in bringing the runaway population to a screeching halt. I had seen it myself in other countries in Asia. Factories will bring vast numbers of women out of their homes into humming factories giving them ‘Now I got it!’ moment. That will give them the power to be part of decisive roles in the affairs at home. Until industrialization starts playing the major role in shaping up the society in every country in the Horn of Africa, the population will continue to explode beyond control creating a haplessly unemployed majority of young population that will avail itself to bigots and connivers to their destructive schemes. That is what we are witnessing now. In a society where industrialization is spreading the youth will be too busy in factories, offices and schools working, adapting and learning. Please don’t forget that the old country with its huge and young population it has a potential huge market to consume what it can produce. Again, without industrialization on steroid, the old country will continue to be the poster child violence, instability, internal displacements and killer famines. In other words, the ugly cycle will continue until it goes belly up for good.

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