SEOUL– South Korea plans to raise the ceiling of its low-interest rate loans to Kenya to US$1 billion to support the African nation’s infrastructure projects, the finance ministry said Wednesday.
South Korea and Kenya have inked an agreement to raise the limit of the Economic Development Cooperation Fund (EDCF) in 2022-26 from the previous $300 million for 2018-20, according to the ministry.
Seoul launched the EDCF program in 1987 to help other developing countries with their basic infrastructure.
“Kenya is a key nation representing East Africa. It is an emerging developing nation enjoying fast growth, based on its sound governance and business environment,” the Ministry of Economy and Finance said.
South Korea wishes to expand bilateral cooperation with Kenya, especially in the energy, digital, and other high value-added infrastructure, it added.
The ministry also said South Korea will continue to expand ties with other emerging countries outside Asia, including those in Central and South America, through the EDCF program.
South Korea has become a donor country from being a recipient of U.N. aid in half a century, a dramatic transformation that has inspired many developing nations to follow in the footsteps of the Asian country in advancing their economies.
Source: Yonhap News Agency