Tanzania is one of sub Saharan Africa countries that will benefit from a new business development cooperation that has been set up between the International Finance Corporation (IFC) and a Korean industrial giant, POSCO.
According to IFC, under a new accord, the two will work closely together in the coming months to identify and pursue investment opportunities in manufacturing, mining and infrastructure undertaking.
POSCO is one of the largest steel production companies in the world, involved in engineering, construction, power generation and natural resource development through its subsidiaries.
The company has led the Korean steel industry for four decades, and has expanded rapidly in many parts of the world.
Young-Hoon Lee, the firm’s senior VP and head of strategy, said in the statement: “Africa is an increasingly important part of the global economy.
POSCO and its affiliated firms have a growing interest in finding new investment opportunities in Africa in steel manufacturing, natural resource development, infrastructure, energy and information technology sectors.”
The new cooperation reflects the growing interest of international project sponsors in sub-Saharan Africa, and IFC’s increasing involvement in South-South cooperation—projects executed in Africa by companies from newly developed countries or other developing countries.
Such investments encourage smoother capital flows and promote high standards that are critical for Africa's economic development, it said.
Korea is today a high income developed country and is part of the G-20 and a member of the Organization for Economic Cooperation and Development.
Saleem Karimjee, IFC country manager for Southern Africa, said: “IFC wants to help investors from other dynamic, rapidly growing economies find opportunities in Africa. IFC has a strong presence across the region, experience in a range of sectors, global expertise and high standards that can help our partners succeed in profitable and sustainable businesses in Africa.”
The cooperation began with a meeting in Johannesburg this week, where a MoU was signed followed by joint sessions on the manufacturing, mining and infrastructure sectors.