Ethiopia

Ethiopia, South Korea seal Sh130.5bn financing deal ahead of Korea-Africa Summit

Prime Minister Abiy Ahmed and South Korean President Yoon Suk Yeol witnessing the signing of a financial deal between Ethiopia Finance Minister Ahmed Shid and his Finance counterpart Choi Sang-mok in Seoul on June 3, 2023. (Photo: X/Abiy Ahmed)

By Maureen Kinyanjui | Monday, June 3, 2024

The financial cooperation will span over the next four years and will be utilised for various purposes including infrastructure development, capacity building in science and technology, healthcare, and urban development.

Ethiopia and South Korea have signed a $1 billion (Sh130.5 billion) financing deal ahead of the Korea-Africa summit.

The signing which took place on Monday was witnessed by Ethiopia Prime Minister Abiy Ahmed and South Korean President Yoon Suk Yeol.

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During the meeting, PM Abiy and President Yeol discussed ways of further strengthening the longstanding and historical relations between Ethiopia and the Republic of Korea.

Finance Minister Ahmed Shide said the agreement signed between Ethiopia and the Republic of Korea will help strengthen the longstanding relationship between the two countries.

He noted that the Republic of Korea has promised to boost trade and investment ties with Ethiopia and provide financial aid to support development projects in the country.

Additionally, both parties agreed to collaborate more closely on technology transfer and agricultural transformation.

Financial cooperation

The agreement outlines that the financial cooperation will span over the next four years and will be utilised for various purposes including infrastructure development, capacity building in science and technology, healthcare, and urban development.

Earlier, PM Abiy and First Lady Zinash Tayachew laid a wreath at the monument of Ethiopian veterans of the Korean War and briefly toured the Memorial Hall.

The memorial honours the Ethiopian Kagnew Battalion, which fought alongside the South Korean and United Nations forces during the Korean War.

"Our countries share a long history spanning over six decades, rooted in Ethiopia's support during the Korean War," PM Abiy said.

The hall serves as a tribute to the sacrifices and contributions made by Ethiopian soldiers and aims to strengthen the historical ties between Ethiopia and South Korea.