The Korean government has provided $ 300 million to the Ethiopian government for the development of science and technology and construction of bus lines in Addis Ababa.
The agreement was signed today in Addis Ababa by Admasu Nebebe, Ethiopia's Minister of Finance and Mr. Lim Hoon-min, Ambassador Extraordinary and Plenipotentiary of the Republic of Korea in Ethiopia. The loan agreement was signed to implement high-priority projects to be financed by concessional loans for the years 2019-2020.
The money will be used to support the establishment of 5 centers of excellence for Science Adama and; Project Technological University. It will also be used for the Project Bus Rapid Transit Line (BRT) of Addis Ababa and other projects in consultation between the two parties. The agreement signed in the Ministry also aims to strengthen bilateral historical development cooperation between Ethiopia and Korea, according to a statement from the Ethiopian Ministry of Finance.
For many years, Ethiopia and South Korea have enjoyed fruitful economic, social, political and cultural relations. Ties between the two countries date back to the time when 6,037 Ethiopian troops (the Kagnew Battalion) arrived at the base of Busan during the Korean War between 1950-1953.
Recent economic cooperation between the two countries also shows the growth of Korean investments in Ethiopia. South Korean companies are involved in or about to get involved in 187 projects in Ethiopia by September 2018, according to Korea's Exim Bank. The transfer and investment amounts of these projects total about 46.5 million and more than 28.6 million dollars, respectively.
South Korean investors in Ethiopia are mostly engaged in construction, manufacturing, business facility management, business support services, leasing, education, finance and insurance, medical and social care.