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The Korean Experience in Transition States

Current Korean Investments

  • Samsung C&T Corporation (an engineering and construction group), Pohang Iron and Steel Company (POSCO) and Korea National Oil Corporation (KNOC) have signed agreements with the DRC to embark on projects ranging from copper and cobalt mines to oil exploration and water infrastructure.
  • South Korean firms are participating in a uranium project in Niger that will import 400 tons of uranium each year into South Korea for 10 years.
  • Korea Resource Corporation, a state-owned mining and natural resource investment company, owns roughly 28% of Ambatovy nickel and cobalt mine in Madagascar.
  • Korean companies have invested in mining (gold and iron ore/steel) in the DRC and Chad.

Read more about FDI in the Horn of Africa

Support Packages and Incentives

A suite of support packages and incentives are available to Korean investors who are interested in the Horn of Africa:



Relevance to Korean Investors

AfDB support packages

African Development Fund Partial Risk Guarantee (ADF-PRG): Provides concessional funding for projects and programs and technical assistance for poverty reduction and economic development in 38 eligible countries.

African Development Fund Private Sector Credit Enhancement Facility (PSF): Increases private financing in low-income countries in Africa. The facility is backed by the liquidity of a reserve pool of €206M seeded by a grant from the ADF to cover potential losses on payment defaults.


ADF-PRG insulates private lenders against well-defined political risks related to the failure of a government or a government-related entity to honor certain specified commitments (e.g. political force majeure, currency inconvertibility, regulatory risks).

PSF financing can indirectly prove useful to Korean investors as it supports AfDB loans made to the private sector after the fact.


Joint Korea-AfDB support packages

Economic Development Cooperation Fund (EDCF): Established to promote economic cooperation between Korea and developing countries through the provision of concessional loans and is managed by the Export–Import Bank of Korea (EXIM Bank).

In addition, economic development funds financed by Korea and Africa points to the opportunity of creating a finance institution between Korea and Africa.


Korea has signed a USD 600M co-financing agreement with the AfDB (via the EDCF) to support Korean firms investing in Africa. The facility can support partial risk and credit guarantees to reduce investment risks for Korean businesses investing in Africa.


Local incentives

Common investment incentives in Horn of Africa countries include: Tax exemptions, duty-free imports of inputs (e.g. machinery), zero discriminatory policies against foreign investment (i.e. foreign companies enjoy the same benefits as domestic companies), and land grants.

These incentives are typically accessed by applying to the local investment promotion commissions or ministries of economic planning and finance.

In addition to local incentives, all countries in the Horn of Africa (apart from Somalia) are members of the World Bank’s Multilateral Investment Guarantee Agency (MIGA) – this means investors and lenders in these countries can receive political risk insurance (guarantees) from the World Bank.


Learn more about investing in the Horn of Africa