Bang Moon-kyu, chief of the state-run Export-Import Bank of Korea poses for a photo after signing a sublease contract worth $100 million with the Eastern and Southern African Trade and Development Bank via a videoconference on Monday. (Export-Import Bank of Korea)
Responding to growing trade and investment volume between South Korea and Africa, the state-run Export-Import Bank of Korea has signed a sublease contract worth $100 million with the Eastern and Southern African Trade and Development Bank via a videoconference, officials said Wednesday.
Launched in 1985, the TDB, a multilateral, treaty-based development financial institution, is aimed at financing local businesses as well as trade activities in the African regions. It has 22 member countries, including Kenya and Tanzania.
According to the sublease deal, once Eximbank issues credit to the TDB, some designated local lenders across Africa will lend the money to a number of local companies, which export to Seoul.
Through the financing, Eximbank expects Korean companies to build stronger ties with their African counterparts and other network in the region which has a great growth potential, officials said.
“(Eximbank) will continue to expand finance projects in Africa through non-face-to-face processes in order to combat the spread of the COVID-19,” said Bang Moon-kyu, chief of the state-run bank.
The agency will co-host an online-based seminar on July 30 to provide information to African companies to help them expand trade with Korean counterparts by using the sublease contract.
By Choi Jae-hee (email@example.com