EDCF* is expanding its overseas networks into Africa.

- The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges with the developing world and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit.

The Export-Import Bank (www.koreaexim.go.kr, Chairman Lee Duk-hoon, “Korea Eximbank”) has opened its first EDCF office in an Africa country.

Korea Eximbank announced on March 20 that it held an opening ceremony on the 19th for the Bank's Maputo office in Maputo, Mozambique.

About 100 key participants attended the opening ceremony including Deputy President of Korea Eximbank Nam Ki-sub, Korea's Ambassador to Mozambique Kang Hee-yoon, Governor of the Bank of Mozambique Ernesto Gove, Permanent Secretary of the Ministry of Interior Zefanias Muhate, President of the National Energy Fund Mozambique (FUNAE) Miquelina Menezes, and Director of the Ministry of Economy and Finance Piedade Macame.

Commencing work in full-fledge this day, Maputo office plans to proactively identify and support socio-economic development projects in Mozambique while, at the same time, fully supporting Korean companies doing business in Mozambique by making financial arrangements for exports/imports and foreign investments.

Mozambique has been recording high annual growth rates of over 7% over the past five years, thanks to the increase in FDI to develop the super-sized gas field.

In particular, high demand in key infrastructure projects such as transportation, energy, and IT, is expected to boost investments in the country by Korean businesses.

Over the past two years, EDCF has provided USD 160 million in loans to Mozambique as demand for infrastructure investments has been rising. As a result, Mozambique is the second biggest EDCF recipient in Africa.

Korea Eximbank's Deputy President said at the opening ceremony, "Mozambique is the gateway to Southern Africa that lies next to the Indian Ocean. It has the highest growth potential in Africa, blessed with rich natural resources." He added, "Leveraging Korea Eximbank's various financial instruments, extensive experiences in EDCF assistance, and broad global networks, we will actively support infrastructure projects, in particular PPP projects, initiated by the Mozambique government."

In the meantime, on March 17, Korea Eximbank held the opening ceremony for the Dar es Salaam office in Tanzania.

Tanzania is the largest recipient of EDCF support, receiving a total of USD 450 million in EDCF loans.

It has been recording over 6% average annual growth rates over the past five years, thanks to the improvement in infrastructure and growth in service and mining industries by using ODA funds.

Korea Eximbank plans to gradually increase the share of EDCF support to Africa, building upon the successful opening of the representative office in Maputo.