□ The Export-Import Bank of Korea (www. koreaexim.go.kr, Chairman Lee Duk-Hoon, "Korea Eximbank") announced on May 27 that it will provide USD 227 million EDCF loans to support the economic development in Ethiopia and establish stepping stones for Korean companies to enter the Ethiopian market.
□ Korea Eximbank Chairman Lee Duk-Hoon met with Minister Abdulaziz Mohammed of the Ministry of Finance and Economic Cooperation of Ethiopia on May 26 at the National Palace in Addis Ababa and signed a USD 127 million loan agreement for the 'Gore-Tepi Road Improvements Project' and an MOU amounting to USD 100 million for the Integrated Irrigation and Rural Development Program.
- The loan agreement and MOU were signed in the presence of President Park Geun-hye and Prime Minister Hailemariam Desalegn of Ethiopia.
□ The 'Gore-Tepi Road Improvements Project' is aimed at paving a 140 km-long road in the south-west of Ethiopia, connecting Oromia and SNNP region.
- Upon completion, the project is expected to vitalize the local economy as the transportation cost of crops such as coffee beans, the major export item of the country, will be reduced.
□ The Integrated Irrigation and Rural Development Program in Ethiopia aims to provide a comprehensive package of infrastructure projects and technical assistance for inclusive and sustainable rural development in Ethiopia.
- In Ethiopia, 84% of the total population is engaged in the agricultural sector.
- The government of Ethiopia is planning to lay the groundwork for higher agricultural production in the country through development cooperation with Korea and looking to bring enhancement in every stage in agriculture, ranging from agricultural development and harvest to distribution, etc.
- Meanwhile, Korea Eximbank intends to push forward the program in southern Ethiopia, which includes constructing irrigation infrastructure, building capacity for farmers, improving access to health facilities, etc., thereby contributing to the Korean government's initiative of "Better Life for All."
□ Prior to the signing of the laon agreement and MOU, Korea Eximbank signed a Framework Arrangement ("FA"), according to which Korea will provide USD 500 million to Ethiopia for the next three years, in order to expedite economic cooperation and EDCF projects between the two countries.
- Korean Minister Yun Byung-se of the Ministry of Foreign Affairs met with Ethiopian Minister Abdulaziz Mohammed of the Ministry of Finance and Economic Cooperation and signed the FA on the same day.
- With the FA signed by the two countries, it is anticipated that EDCF projects that will be conducted in Ethiopia will gather momentum since individual implementation arrangements for each EDCF project will not be needed as per the FA.
□ Meanwhile, Korea Eximbank will be holding the opening ceremony of Addis Ababa Representative Office on May 27 in Addis Ababa, Ethiopia and commence its operation on the day.
- Approximately 100 key dignitaries will attend the ceremony including Korea Eximabank Chairman Lee Duk-Hoon, Ethiopian Minister Abdulaziz Mohammed of the Ministry of Finance and Economic Cooperation and other government officials.
- The Representative Office in Addis Ababa will act as EDCF's regional office for eastern Africa that will identify and support EDCF projects in the region.
- Also, by making financial arrangements for export-import transactions and overseas investments for Korean companies, the Office is expected to support Korea companies doing business in Ethiopia and those bidding for contracts.
- After the opening ceremony, Chairman Lee will deliver KRW 10 million for the sponsorship to 10 students from Hibret Fire Primary School, located at the Korean War Veteran Village in Ethiopia.
