Statement by H.E. Kang Kyung-wha
Minister of Foreign Affairs
Republic of Korea

Korea-Africa Business Forum
25 October 2017

Vice Chairman Sul Hoon, Amb. Malungo, Dr. Toeman, excellencies, distinguished Guests, ladies and gentlemen,

It is indeed a great honor and privilege for me to open this forum on behalf of the Korean Government. Let me express my sincere gratitude to our co-hosts, the Korea-Africa Center, the Korean Chamber of Commerce and Industry, and the African Union for the excellent preparations for this forum.

My very special thanks go to the business and government leaders who have come all the way from Africa, as well as to the Korean participants who have taken an interest in doing business with Africa.

I have a special place in my mind and heart for Africa. I travelled to many countries in the continent during my ten years working at the United Nation. The work took me to many vulnerable countries facing natural and man-made disasters, but I also met with some of the most resilient communities and inspiring leaders, women and men, who aspire to transform Africa as the engine for the future economic prosperity of the world.

The narrative of ‘Africa rising’ emerged almost a decade ago, building on the high growth rates registered by many African countries. In recent years, the success stories have shifted from resource-rich countries to those practicing sound development policies. They are linking up with the value chain of the global economy and paving the road to prosperity for Africa by overcoming infrastructure deficits and building a solid basis for manufacturing and other industries.

Beyond the political importance of Africa as a continent of more than a quarter of all sovereign countries in the world, Korea views Africa as a valuable partner in development and economic cooperation. As a recipient-turned donor country, Korea has travelled the road from a war-ravaged country to a vibrant democracy and thriving market economy. We have much to offer as many African countries travel their own roads to economic and social development.

Korea has been organizing the Korea-Africa Forum for more than a decade, supporting Africa’s development agenda as a committed, reliable and empathetic partner. Following the announcement of Korea’s Initiative for Africa’s Development in 2006, Korea’s official development assistance in the form of grants and concessional credits has almost quadrupled. Actively supporting development in infrastructure, health, education and other areas where it is difficult to secure private investment, Korea seeks to help nurture an investment-friendly environment in the region.

Furthermore, various efforts to bring African and Korean business communities closer together have been pursued at the governmental level through the Korea-Africa Economic Cooperation Ministerial Conference (KOAFEC) and Korea-Africa Industry Cooperation Forum (KOAFIC). I am sure that the Annual Meeting of the African Development Bank to be held in Busan next year will be a valuable opportunity to explore ways to accelerate sustainable growth for Africa.

Most Korean business investments in Africa are small and medium sized enterprises. Indeed, SMEs are an effective source of employment opportunities that can ensure the sharing of the fruit yielded through economic growth. In this connection, I believe that the theme of today’s second session, ‘Financing Business in Africa’ is particularly pertinent. I look forward to participants sharing views on how we can help SMEs to find ways to finance their undertakings.

Time and again, it has been pointed out that the lack of information and difficulties in financing investment are among the major obstacles to promoting Korean trade and investment in Africa. Currently, our trade with all of Africa is merely around 1.5% of Korea’s total and this must change.
Africa has its challenges and opportunities. Diverse business environments found in different parts of the continent tend to further complicate our perception of risk when it comes to doing business in Africa.

This forum seeks to address these challenges by focusing on investment financing. It is an excellent chance to share success stories and best practices. We have here at this forum, prominent financiers well-experienced in Africa as well as local and foreign business leaders from Africa who are achieving great successes.

It is my sincere hope that this forum will facilitate business with Africa by presenting a picture closer to the reality of the continent. And I trust that it will serve as a valuable opportunity for those with an interest in Africa to find ways and means to finance their undertakings. Any recommendations and advice put forward at this forum will be carefully reviewed in formulating the Korean government’s policy for promoting long-term business interactions between Korea and African countries.

Your discussion takes place at a timely moment. We are about to establish a new RoK-Africa Center, in accordance with a new law passed by the National Assembly recently. My colleagues and I are very excited with this new tool to strengthen Korea’s relations with African countries. The outcome of today’s forum will surely enrich the work of the new Center. So I wish you a day of fruitful discussions. Thank you.