Opportunities for garment manufacturing are available in Ethiopia, Sudan, Eritrea and Djibouti. A delegation of Korean textiles manufacturers visited Ethiopia and Kenya in 2016 to conduct field work to consider whether these countries could be a base for investment.
Agriculture is the largest single sector in the Horn of Africa (approximately 35% of total GDP), with coffee the number one export from the Horn to Korea. Agricultural transformation is one of the AfDB’s ‘High 5’ priorities. In South Korea, agriculture contributes 2% of the economy; While South Korea can bring technological expertise, the opportunities for collaboration may be nascent. South Korean firms may be able to bring expertise in higher-value agricultural processing, rather than just primary production. In 2016, Lotte Confectionery became the first Korean food company to enter the African market and set up their operations in Kenya.
In the more challenging markets (Eritrea, South Sudan and Somalia), oil and mining (especially gold) has historically been the source of the majority of private sector investments.