Tanzania and South Korea have signed a framework agreement enabling Tanzania to obtain concessional loans worth 2.5 billion U.S. dollars over the next five years, the presidency said on Sunday.
A statement by the Directorate of Presidential Communications said the loans for the years 2024-2028 will come from the Economic Development Cooperation Fund (EDCF).
The agreement was signed in Seoul, the capital of South Korea, during Tanzania’s President Samia Suluhu Hassan’s official visit to South Korea at the invitation of President Yoon Suk Yeol.
The two heads of state held official talks and witnessed the signing of the agreement and other deals aimed at bolstering cooperation in critical minerals and the blue economy, including a joint statement on the launch of negotiations for an Economic Partnership Agreement (EPA).
The envisaged EPA will elevate Tanzania-South Korea economic ties to a strategic relationship by boosting partnerships in various sectors, including trade, investment, transport, and industry, said the statement.
Hassan requested enhanced cooperation with South Korea in specific sectors, including the blue economy, development of natural gas, the creative industry, particularly film, and arts, and for Tanzania to supply labor to South Korea through the Employment Permit System program, said the statement.
According to the statement, a memorandum of understanding (MoU) on strategic minerals signed during the official visit will enhance Tanzania and South Korea cooperation on geological survey, mining investment and beneficiation of critical minerals such as nickel, lithium and graphite.
