Africa: Korea, African Development Bank Sign Deal to Launch Joint Ai Hub to Support Africa

On 9 September, the African Development Bank Group and South Korea inked a Letter of Intent in Seoul to create a joint artificial intelligence (AI) hub aimed at promoting responsible AI development and financing across the continent. The agreement, signed by African Development Bank President Dr Sidi Ould Tah and South Korean Deputy Prime Minister and Finance Minister Koo Yun-cheol, took place during the 8th Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference held from 8 to 11 September in Seoul.

The proposed Korea-Africa Hub for AI is set to become a long-term platform uniting governments, financial institutions, research centers, universities, and businesses to advance AI and digital innovation projects in Africa. The hub, anticipated to be based in South Korea, will leverage Korean technological expertise to aid Africa's pressing need for digital transformation.

The initiative will be funded by Korean public and private institutions, with progress reviews planned over the next two years, potentially leading to expanded mandate considerations.

The African Development Bank estimates that effective AI adoption could inject up to $1 trillion into Africa's GDP by 2035, contingent on substantial investments in digital infrastructure, computing capacity, data, skills, governance frameworks, and funding. This agreement supports integrating AI into projects backed by the African Development Bank, fostering knowledge-sharing between Korean and African partners and identifying new investment opportunities in infrastructure and innovation-driven enterprises.

President Ould Tah emphasized the significance of this initiative, stating it reflects the shared ambition to harness AI as a catalyst for economic transformation and inclusion in Africa. He highlighted the potential of combining Korea's technological leadership, innovation capabilities, and Africa's youthful demographic to generate growth, employment, and competitiveness across the continent.

Korea has been a member of the African Development Fund since 1980 and the African Development Bank since 1982, contributing $132.82 million cumulatively to the Bank Group's concessional lending arm.