- Initiatives & Partnerships
- AFAWA (Affirmative Finance Action for Women in Africa)
- Access to finance for SMEs through FIs
- Adaptation Benefit Mechanism (ABM)
- AfDB - OECD Joint Initiative
- Africa Climate Change Fund
- Africa Digital Financial Inclusion Facility (ADFI)
- Africa Energy Market Place
- Africa NDC Hub
- Africa Trade Fund (AfTra)
- Africa Visa Openness Index
- African Carbon Support Program
- African Fertilizer Financing Mechanism
- African Financial Alliance on Climate Change (AFAC)
- African Financial Markets Initiative (AFMI)
- African Guarantee Fund for Small and Medium-sized Enterprises
- African Leaders for Nutrition Initiative
- African Legal Support Facility
- African Natural Resources Centre
- African Peer Review Mechanism
- African Water Facility
- African Women in Business Initiative
- Agriculture Fast Track (AFT) Fund
- Aid for Trade Trust Fund
- Boost Africa: Empowering Young African Entrepreneurs
- Climate Investment Funds (CIF)
- Climate for Development in Africa (ClimDev-Africa) Initiative
- Congo Basin Forest Fund (CBFF)
- Deauville Partnership
- Debt Relief Initiatives
- Emergency Liquidity Facility (ELF)
- Enhanced Private Sector Assistance for Africa: EPSA Initiative
- Extractive Industries Transparency Initiative
- Fragility & Resilience
- Fund for African Private Sector Assistance
- Global Environment Facility (GEF)
- Green Bonds Program
- Green Climate Fund
- Green Growth Initiative
- Health in Africa Fund
- High-Level Panel on Fragile States
- Information Centre for the Extractives Sector
- Investment Climate Facility
- Jobs for Youth in Africa
- Making Finance Work for Africa Partnership
- Microfinance Multidonor Trust Fund
- Middle Income Countries
- Migration and Development Initiative
- Multi-Donor Governance Trust Fund
- Multi-Partner Somalia Infrastructure Fund (SIF)
- Multidonor Water Partnership Program
- NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF)
- Partnership on Illicit Finance
- Power Africa Initiative
- Programme for Infrastructure Development in Africa (PIDA)
- Rural Water Supply & Sanitation Initiative
- STAARS: structural transformation of African agriculture and rural spaces
- Seed Capital Assistance Facility (SCAF)
- Social Bonds Program
- South-South Cooperation Trust Fund
- Strategic Partnership with Africa
- Sustainable Energy Fund for Africa
- Sustainable Energy for All (SE4ALL)
- The Presidential Youth Advisory Group (PYAG)
- Trade Finance Program
- Zimbabwe Multi-Donor Trust Fund
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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.
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.
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.