Eximbank offers $70 mil. in assistance to Ethiopia
The Export-Import Bank of Korea (Eximbank) said Thursday it is providing $70 million through the Economic Development Cooperation Fund (EDCF) to Ethiopia for COVID-19-related programs.
The government set up the EDCF in 1987 to provide economic assistance to developing countries. Eximbank is in charge of managing the fund, which is used to provide long-term loans with low interest rates, to contribute to developing countries’ industries and economic stability. The assistance is also a means to increase economic exchanges with foreign countries.
Eximbank said $30 million will be used for a program to supply medical equipment and the other $40 million for other government programs to deal with COVID-19.
Eximbank CEO Bang Moon-kyu signed a contract on the deal with Ethiopian Ambassador to Korea Shiferaw Shigute at the state-run bank’s headquarters on Yeouido in Seoul, Tuesday.
“By financing programs for health that hold utmost priority in dealing with COVID-19 in Ethiopia, we hope this will promote the two countries’ relationship and help Korean companies’ entry into Africa,” Bang said.
The financing is part of the government’s plan announced in April to provide EDCF funding to developing countries for health-related programs to tackle COVID-19.
Korea has ties with Ethiopia as the latter took part in the 1950-53 Korean War. Ethiopia’s GDP per capita stood at $766 last year and the country has a population of over 109 million. It has recorded over 8 percent in annual GDP growth in the past five years, but COVID-19 has delivered a blow to Ethiopia’s economy. The country is in need of improved testing capabilities and medical equipment. Eximbank is seeking to play a role in exporting to Africa Korea’s capabilities exhibited in dealing with COVID-19.
“The loans for medical equipment have been enabled to be swiftly executed, streamlining the process which usually takes two years, considering the urgency of tacking COVID-19 in the recipient country,” an Eximbank official said.
“We believe this has secured a bridgehead for small and medium-sized Korean enterprises producing medical equipment to enter markets in Africa.”