(Yonhap Interview) Africa eyes closer economic ties with S. Korea in auto, tech sectors: AfCFTA chief
SEOUL, Nov. 11 (Yonhap) -- Africa has the potential to become a strategic partner for South Korea in the car manufacturing and tech industries, with its abundant critical mineral resources, and push for industrialization and digitalization of the continent, the head of the region's free trade bloc said Tuesday.
"Africa offers vast opportunities for partnership with Korean companies, particularly in sectors driving the continent's industrial, digital and green transformation under the AfCFTA (African Continental Free Trade Area)," Wamkele Mene, secretary-general of the AfCFTA, said in a written interview with Yonhap News Agency.
AfCFTA is a major trade agreement signed in 2018 by all African Union member states but one, which aims to create the largest free trade area in the world by the number of participating countries. The agreement entered into force in 2019, and formal trading began in 2021.
"(Korean) conglomerates, such as Hyundai, Samsung and LG, could establish regional production hubs producing components and consumer goods that qualify under the AfCFTA's rules of origin, granting duty-free access across the continent," Mene said.
"The new Korea-Africa Critical Minerals Dialogue also creates opportunities for joint ventures in processing lithium, cobalt and graphite, projects that can generate skilled jobs and integrate Africa into global electric vehicle (EV) and battery supply chains, while strengthening Korea's supply-chain security," he added.
The bilateral critical minerals dialogue was officially launched in February to boost economic ties between the two sides, as agreed during the Korea-Africa Summit attended by delegations from 48 African nations last year.
In May, Korea and the AfCFTA also signed a memorandum of understanding for creating a cooperation fund to facilitate trade between the two sides, and bolster institutional and technical ties.
"Manufacturing and industrialization are central to Africa's growth agenda," Mene stressed. "Korea's technological excellence and production efficiency can help build regional value chains in automotive, electronics and machinery, enabling African economies to move from raw (materials) exports to manufacturing and assembly."
The AfCFTA chief said digital economy and green industry could also become a promising frontier for economic cooperation between Korea and Africa.
"With Africa's booming mobile and fintech sectors, Korea's global leadership in ICT and smart infrastructure offers strong synergies," he said.
For instance, Korea's Uni-Pass customs platform is already in use in Ghana and Tanzania, he noted, shedding light on Korea's efforts to transfer technology to advance Africa's digital trade, e-commerce and public digital systems.
Uni-Pass system refers to an electronic customs clearance system developed and operated by the Korea Customs Service. It digitizes and automates the entire customs process as part of efforts to facilitate trade.
For the green industry, Korea's expertise in renewable energy, climate-smart agriculture and EV manufacturing can help Africa foster green transition and deepen its industrial capacity, Mene said.
"Finally, Korea's proven expertise in infrastructure development and smart cities, from ports and bridges to intelligent logistics corridors, can help close Africa's infrastructure gap and support AfCFTA implementation," he added.
To this end, Mene said AfCFTA will work to offer Korean companies a "predictable" and "unified" market of over 1.4 billion people by harmonizing regulations, lowering tariffs and simplifying customs procedures to remove barriers that previously fragmented Africa's economies.
"By combining Korea's technological expertise and investment capacity with Africa's vast resources and growing integrated market, the AfCFTA-Korea partnership can drive industrialization, digital innovation and sustainable growth across the continent, anchored in mutual benefit and shared prosperity."
The AfCFTA secretary-general is scheduled to deliver a keynote speech at the Future Economic Forum, which will be co-hosted by Yonhap News Agency and the Korea-Africa Foundation on Friday in Seoul.
The upcoming forum will be held under the theme of "Rediscovering Africa: Leaping Forward Together with South Korea," bringing together officials of African diplomatic missions in Seoul, representatives of the Korea-Africa Foundation, and experts from academia and the private sector for discussions on the current economic landscape and future prospects of Africa, strategies for Korea-Africa cooperation, and key challenges.
nyway@yna.co.kr
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