Korean public and private institutions are expected to fund the initiative, with both partners planning to review progress over the next two years and consider expanding its mandate where appropriate.
- Economy & Business
Devdiscourse News Desk
| Seoul | Korea Rep
Africa’s push to turn artificial intelligence into better services, stronger businesses and new jobs is gaining a new platform through an agreement between the African Development Bank Group and the Republic of Korea. The partners signed a Letter of Intent in Seoul on 9 September 2026 to establish a Korea-Africa AI Hub that will support the responsible development, adoption and financing of AI technologies across the continent.
Bank Group President Dr Sidi Ould Tah and Korean Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol signed the agreement during the eighth Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference. Held from 8 to 11 September under the theme ‘Harnessing AI and Digital Infrastructure for Africa’s Transformation,’ the gathering marked two decades of cooperation through KOAFEC and gave the partners an opportunity to connect their technology ambitions with Africa’s development needs.
A Hub Connecting Ideas With Investment
Expected to be based in Korea, the proposed hub will bring together governments, financial institutions, research centres, universities and businesses as a long-term platform for AI and digital innovation projects in Africa. Its role will draw on Korea’s technological expertise and respond to African countries’ growing demand for digital transformation, creating opportunities for researchers, investors and public institutions to work together on projects.
Korean public and private institutions are expected to fund the initiative, with both partners planning to review progress over the next two years and consider expanding its mandate where appropriate. The agreement supports incorporating AI into African Development Bank-financed projects, sharing knowledge between Korean and African partners, and identifying investment opportunities in infrastructure and enterprises built around innovation. These priorities link the development of new technologies with the financing and practical support needed to put them to use.
Turning AI Potential Into Economic Opportunity
The African Development Bank estimates that effective AI adoption could add up to $1 trillion to Africa’s gross domestic product by 2035, a potential gain that depends on substantial investment across the digital economy. Infrastructure, computing capacity, data, skills, governance frameworks and financing all need to develop for that opportunity to become a reality, making the hub part of a much broader effort to build the foundations for responsible AI use.
Ould Tah encouraged Korean businesses to invest in Africa, describing the initiative as a way to connect Korea’s technological leadership and innovation capabilities with the energy and potential of Africa’s young population. He presented AI as a possible driver of economic transformation and inclusion, with opportunities for employment, growth and stronger competitiveness across the continent. The emphasis on responsible adoption places governance and skills alongside technology and capital in the partnership’s plans.
Two Decades of Cooperation Behind the Plan
Korea’s relationship with the Bank Group predates KOAFEC, beginning with membership of the African Development Fund, its concessional lending arm, in 1980 and the African Development Bank in 1982. The partners established the KOAFEC Trust Fund in 2006, and it has become the Bank’s largest active bilateral trust fund, providing an established channel for supporting development projects and preparing investments.
Korea’s cumulative contributions to the trust fund reached $132.82 million as of 31 May 2026, including approximately $50 million allocated to technical assistance and project preparation that helped finance more than 40 investment operations and programmes worth over $6 billion. Korean funds have also helped mobilise at least $4 billion in financing, and KOAFEC support has reached more than 1,300 African startups and entrepreneurs, benefited over 1,200 businesses and contributed to more than 5,000 jobs. The proposed AI hub builds on that record, extending the partnership into technologies whose economic benefits will depend on sustained investment and practical delivery.
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Innovation financingDigital transformationRepublic of KoreaAfrican startupsYouth employmentDigital infrastructureResponsible AISkills developmentKorea-Africa AI HubKOAFEC 2026African Development BankArtificial intelligence
