President of the African Development Bank (AfDB), Akinwumi A. Adesina has described a technological partnership between South Korea and Africa as “A win-win proposition”.
Speaking at a meeting on potential technology partnerships between Korea and Africa, Dr. Adesina noted that the future is going to be an exponentially different future, and that the Bank intends to explore the creation of a strategic partnership with Korea that could lead to the creation of a Korea-Africa research and training Drone Center, that could help pave the way for Africa’s 4th Industrial Revolution.
In his words, Adesina says, “We are determined to expand the use of drones in agriculture in Africa. What we do in Africa today, will determine global food security tomorrow.”
According to him, it is important that the technological partnership with Korea translates into the capacity building on the ground, through training, so that Africa can industrialize, build or assemble drones.
Also, representatives of Busan Metropolitan City, Busan Techno Park, and Korea’s Green Technology Center said there is huge potential for cooperation and immense opportunities for job-creating bankable projects. The range of business options includes agriculture, green growth, smart urban transportation management, and numerous business opportunities.
According to Director, Global Strategy Division, Green Technology Center, Hyung-Ju Kim, “Korean expertise can provide a practical and pragmatic solution to a wide range of Africa’s most pressing technology needs: The African Development Bank could play a major role here: if we bring technology to the table, the Bank can identify and facilitate bankable projects that can boost technology cooperation between Africa and Korea.”
With funding from the Korea-Africa Cooperation (KOAFEC) fund, the African Development Bank, in cooperation with Busan Metropolitan City, and the Busan Techno Park, launched a pilot project in Tunisia using drone technology to develop agriculture, including data collection and analysis, monitoring irrigated perimeters, aquifers, the effects of climate change, land degradation, biodiversity, filling and siltation of dams, and overall agricultural production.
Korea and the African Development Bank intend to extend the program to other countries and regions in Tunisia and Africa and explore the massive market potential of industrial zones in other sectors.
While speaking to the African diplomatic corps in Seoul, Adesina identified three main obstacles to private sector development, they include access to finance, energy and stability. The Bank has invested $1 billion in AfreximBank, including $650 million in trade finance lines of credit and $350 million in trade insurance. The Bank has also invested $630 million in First Rand Bank and AbSA in South Africa to support expanded access to trade finance for 20 countries.
This financing effort includes small and medium-sized enterprises, which represent more than 80 percent of businesses in Africa. In this respect, he cited the Asian example, where large companies relied on value chains dominated by SMEs including suppliers and subcontractors. The Bank’s strategy is to develop large companies while connecting them to SMEs for increased value creation.
“Without electricity, it is impossible to industrialize Africa,” Adesina said. The Bank has made access to electricity a top priority. Its ‘Desert to Power’ initiative will develop an estimated 10,000 MW in the Sahel region, making it the largest solar project in the world.
Adesina, the head of Africa’s leading development finance institution, says, the Bank’s 2018 Africa Investment Forum in South Africa, secured investment commitments worth $38.7 billion in less than 72 hours, which provides a strong indication of global interest in Africa’s emerging markets.
Experts say in order for the African Development Bank to continue supporting the continent’s development, a general capital increase is necessary.
According to Adesina, an $11 billion increase in paid-in capital would significantly change the lives of millions of people, including 105 million who would have access to electricity; 137 million who would benefit from access to improved agricultural technologies; 22 million who would benefit from investments in private sector projects; 151 million with access to improved transportation services; and 110 million who would be provided with access to improved water and sanitation services.
The Dean of the Board of Directors of the African Development Bank, Abdelmajid Mellouki, estimates that a general capital increase would enable the Bank to provide African countries with funding at significantly lower costs.