A groundbreaking $2.5 billion financing agreement between Tanzania and South Korea took center stage during recent talks between Finance Minister Dr. Mwigulu Lameck Nchemba Madelu and South Korean Ambassador Eunju Ahn in Dodoma. This collaboration represents the largest Korean investment in any African country to date.
The agreement, formalized on June 2, 2024, in Korea with both presidents present, will power 12 strategic projects across Tanzania’s development landscape. These initiatives aim to create jobs, strengthen the economy, and modernize the country’s Information and Communication Technology infrastructure.
Dr. Nchemba shared that President Samia Suluhu Hassan has already mapped out the fund allocation strategy in her 2024 Year-End Address. “We’re ready to move forward with these projects immediately,” he stated, reflecting Tanzania’s commitment to maximizing this partnership’s potential.
Ambassador Ahn recognized Tanzania’s strong economic performance and growth prospects, positioning it as a key development ally for South Korea. The ambassador detailed plans to support Tanzania in executing the 12 strategic projects, which will involve collaboration between public and private sectors.
The meeting also tackled practical challenges, such as resolving double taxation issues and preventing tax evasion for businesses operating in both countries. Both officials explored concrete steps to boost bilateral investment and deepen economic cooperation between Tanzania and South Korea.
This partnership opens new doors for Tanzania’s economic advancement while strengthening South Korea’s presence in East Africa’s rapidly growing market.
