The African Development Bank Group and the Republic of Korea signed a Letter of Intent on 9 September in Seoul to establish a Korea-Africa Hub for artificial intelligence (AI) to support the responsible development, adoption and financing of AI technologies across Africa.
African Development Bank Group President Dr Sidi Ould Tah and South Korean Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol signed the agreement on the sidelines of the 8th Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference, held in Seoul from 8 to 11 September under the theme “Harnessing AI and Digital Infrastructure for Africa’s Transformation.”
This agreement marks a new milestone in the strategic partnership between Korea and Africa, building on two decades of fruitful cooperation within the KOAFEC framework.
The Hub, expected to be based in Korea, will serve as a long-term platform that brings together governments, financial institutions, research centres, universities, and businesses to advance AI and digital innovation projects in Africa. It will draw on Korea’s technological expertise and address African countries’ growing need for digital transformation.
The initiative will receive funding from Korean public and private institutions. The two partners plan to review progress over the next two years and, where appropriate, consider expanding the platform’s mandate.
The African Development Bank estimates that effective adoption of AI could add up to $1 trillion to Africa’s GDP by 2035, but adds that this depends on major investment in digital infrastructure, computing capacity, data, skills, governance frameworks and funding.
The agreement supports integrating AI into projects financed by the African Development Bank and promotes knowledge-sharing between Korean and African partners. It also aims to identify new investment opportunities in infrastructure and innovation-driven enterprises.
In Seoul, President Ould Tah urged the Korean private sector to invest in Africa:
“This initiative reflects our shared ambition to make artificial intelligence a catalyst for economic transformation and inclusion in Africa,” he said. “By combining Korea’s technological leadership, its potential for innovation and the demographic dynamism driven by Africa’s youth, we can create new opportunities for growth, employment and competitiveness across the continent.”
Korea joined the African Development Fund, the Bank Group’s concessional lending arm, in 1980, and the African Development Bank in 1982. In 2006, it established, in partnership with the African Development Bank Group, the KOAFEC Trust Fund, which is now the Bank’s largest active bilateral trust fund.
As at 31 May 2026, Korea’s cumulative contributions to the Fund totalled 132.82 million dollars. Of this amount, approximately $50 million, allocated to technical assistance and project preparation, has helped finance more than 40 investment operations and programmes totalling over $6 billion. Korean funds have also helped mobilise at least $4 billion in financing. KOAFEC has further supported more than 1,300 African start-ups and entrepreneurs, benefited more than 1,200 businesses, and contributed to the creation of more than 5,000 jobs on the continent.
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