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Sunday, 23 January 2022

Korean presidential visit brings USD 1.3 bn in new financing, raft of cooperation agreements

We could have a trade agreement with South Korea soon: President Abdel Fattah El Sisi and South Korean President Moon Jae-in agreed on Thursday to conduct a joint feasibility study of a bilateral trade liberalization agreement, according to the Korean press. If it comes to fruition, the agreement would be Korea’s first trade pact with an African country. Moon was here from Wednesday through Friday last week, marking the first time a South Korean president has visited Egypt in 16 years.

Korea is set to provide us with soft loans worth USD 1 bn over the next five years to finance construction and infrastructure projects, including transport and water infrastructure, as per an MoU the two presidents signed on Thursday. The funding from Korea’s Economic Development Cooperation Fund will also be used to fund new and renewable energy projects, the International Cooperation Ministry said in a statement. South Korea’s ambassador in Cairo announced the planned loan earlier last week.

The two sides also inked a USD 251.6 mn development finance agreement that aims to upgrade the signaling systems for the Egypt-Luxor High Dam railway line, according to the International Cooperation Ministry. This comes in addition to a fresh USD 7.9 mn development grant from the Korean International Cooperation Agency (KOICA) with the aim of establishing a public e-procurement system, including training and technical support.

Cooperation on culture: The two countries also signed an agreement to work together on archeological sites, restoration, and museum management — including the use of technology, and combating illegal trafficking in antiquities. It will begin with the restoration of the first edifice at the Ramesseum Temple in Luxor, according to a statement from the Tourism Ministry.

What else was on the agenda? El Sisi and Moon also discussed localizing the manufacture of electric vehicles, according to an Ittihadiya statement, as well as cooperation on communications, tourism, mining, security, and potential Korean involvement in El Sisi’s Decent Life development initiative.

Trade between Egypt and South Korea tops out at about USD 2 bn annually, while Korean investment in Egypt rings in at about USD 800 mn, Moon said, according to a cabinet statement. He added that some 33 Korean companies operate in Egypt.

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