Korean President Moon Jae-in has committed to sharing Korea’s technological and industrial experience with Africa and to help it compete in the 4th Industrial Revolution.
His message came at the opening ceremony of the 53rd Annual Meetings of the African Development Bank.
“Africa is no longer the sleeping lion. Korea is happy to share its industrial experience with the continent. The theme of the Annual Meetings is appropriate for the industrial transformation of the continent, and in facilitating the sharing of experiences with Korea and other partners.”
African Development Bank president Akinwumi Adesina recalls Korea’s transformation from a poor nation 60 years ago to the 11th largest economy in the world, noting the contribution of industrialization to its transformation.
“Today, Samsung and LG television and phones dominate globally, while Korean cars are everywhere. Korea was deliberate and consistent in its industrial drive like China and Japan. Africa must learn from Korea’s industrialisation and the equally remarkable experiences of China, Japan, and other parts of the world,” he says.
“Africa must fast-track industrialisation. That is why the African Development Bank plans to invest $35-billion over the next 10 years in its focus on industrialisation. The bank’s industrialisation strategy hopes to help Africa raise its industrial GDP from a little over $700-billion today to over $1.72 trillion by 2030. This will allow Africa’s GDP to rise to over $5,6-trillion, while moving GDP per capita to over $3 350.
“The formula for the wealth of nations is clear: rich nations add value to all they produce; poor nations simply export raw materials. Africa needs to industrialise and add value to everything that it produces – from agriculture, to minerals, to oil, gas and metals. Africa needs to move from the bottom to the top of the global value chains.”
To unlock Africa’s potential through investment, the bank has created the Africa Investment Forum, a transactional platform created by the African Development Bank with its partners to leverage global pension funds and sovereign wealth funds and other institutional investors to significantly invest in Africa. This new investment marketplace will set sail from 7 to 9 November 2018 from Johannesburg.
Dong Yeon Kim, deputy prime minister and minister of strategy and finance of the Republic of Korea, said a new approach is urgently needed. He stresses the need for innovative industrialisation to translate Africa’s potential into economic prosperity.
“Industrialisation policy should take into account the unique conditions of each country. New technologies can provide leapfrogging opportunities by speeding up the industrialisation process and creating new value.” Smart infrastructure, he said, presents a promising area for Korea’s contribution.
“Smart infrastructure can provide a new solution to Africa’s shortage in roads, airports and harbours. It allows optimal use of resources and can even replace traditional infrastructure. Africa is already producing substantial outcomes in this area. Going forward, Korea is strongly committed to share its rich expertise and experience as Africa’s close partner.”