Invest KOREA

Korea-Africa Summit opens up the opportunity to enter the market of USD 3.4 trillion with 1.4 billion population

The Ministry of Trade, Industry and Energy (Minister Ahn Duk-geun) and KOTRA (President Yu Jeoung-yeol) published "2024 Investment Environment Analysis of African Manufacturing Industry". In time with the upcoming Korea-Africa Summit in June, it was published for Korean manufacturing companies aiming to enter the African market, and can be downloaded in PDF on the KOTRA website.

The 180-page PDF covers: in-depth analysis of the political, economic, and industrial environment in sub-Saharan Africa; the current status of investment promotion and; Korean companies' strategies for entering the African manufacturing industry.

In addition, Africa is laying the institutional foundation as an integrated market of USD 3.4 trillion in GDP through the gradual implementation of the African Continental Free Trade Agreement (AfCFTA) and the introduction of the Pan-Africa Payment and Settlement System (PAPPS). Additional appealing point is its potential to serve as a manufacturing base to enter the advanced markets if utilizing preferential tariff systems for African manufacturing industries, such as the African Growth and Opportunity Act (AGOA) of the US and the Everything but Arms (EBA) of Europe.

The industries that African countries are intensively fostering are: agriculture; agricultural product processing; automobiles; pharmaceuticals; and renewable energy. These are areas that Korean companies possess superb technical capabilities, raising the expectation of increasing demand for economic cooperation based on Korea's advanced technology and experiences of development.

Kim Myung-hee, head of KOTRA's Africa Regional Headquarters, said "Africa is a land of opportunities for Korean companies in various fields such as trade, investment, infrastructure, minerals, energy, defense, and IT," adding that "Considering the lack of information about the African market and success stories, KOTRA will become a reliable partner for Korean companies to solidify their position in the African market".

Meanwhile, in connection with the Korea-Africa Summit to be held on June 4-5, the MOTIE and KOTRA will host the "Korea-Africa Business Partnership" event at the COEX Intercontinental Hotel on June 4 by inviting major African mineral companies, project orderers and promising buyers.



Source: Invest KOREA (2024.06.05.)