The government of Korea and the African Development Bank (AfDB) have signed a letter of intent to launch the Korea–Africa Energy Investment Facility (KEIF), which will provide significant support to the New Deal on Energy for Africa, which aims to achieve universal access to energy. 

The signing, which took place on Tuesday during the Korea–Africa Economic Cooperation (KOAFEC) meeting at the AfDB’s annual meeting in Busan, builds on the 2016 KOAFEC Ministerial conference, which recognised enhancing access to energy as a strategic factor for the modernisation and transformation of African economies.

The KEIF will contribute towards Africa’s efforts to achieve universal access to energy and to transform its energy systems. 

Under this facility, AfDB will take the lead in project development in close consultation with regional member countries.

Korea stands ready to provide $600-million over a period of five years in both concessional and nonconcessional finance for a variety of energy operations that will support the provision of electricity for homes, schools, hospitals, agriculture and industries.

The facility will support the full range of activities, which includes preparation, construction and operations, through a mix of financing and technical assistance. 

In addition, Korea also signed a memorandum of understanding with the US-led Power Africa initiative during the same event, which underlines its intention to support the African power sector, notably the development of transmission line infrastructure.

AfDB president Akinwumi Adesina welcomed Korea’s support for the New Deal on Energy for Africa through the KEIF, which he said would be “an important contribution towards achieving universal energy access in Africa”.

Korea’s Deputy Prime Minister and Minister of Strategy and Finance Dong Yeon Kim stressed that “Africa is struggling with shortage of power which is why Korea strongly supports the Light up and power Africa High 5 of the African Development Bank including through the KEIF”. 

Further work is expected on the detailed implementation arrangements over the coming weeks to be able to effectively support projects as early as the end of this year.