By Correspondent Benny Mwaipaja
Tanzania and South Korea have agreed to accelerate the implementation of a US$2.5 billion financing commitment to support strategic projects intended to strengthen infrastructure, technology, manufacturing, healthcare and other sectors of the Tanzanian economy.
Finance Minister Khamis Mussa Omar said the two countries had agreed to step up coordination to ensure projects under Korea’s Economic Development Cooperation Fund (EDCF) move from commitments and feasibility studies to actual implementation.
Omar made the remarks in Seoul during the Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference, where he led the Tanzanian delegation in discussions with the Export-Import Bank of Korea (Korea Eximbank), which implements the EDCF development cooperation facility.
The discussions highlighted a familiar challenge in large development projects: securing financing is only the first step. Delays in feasibility studies, detailed engineering designs and project preparation can hold up implementation for years, reducing the economic impact of financing commitments.
Omar said Tanzania valued Korea’s development partnership but called for closer coordination to address bottlenecks that have delayed projects agreed under the EDCF framework.
Some projects have taken several years to reach implementation, he said, underscoring the need for both sides to resolve technical and administrative obstacles more quickly.
From pledges to projects
The two sides reviewed projects linked to President Samia Suluhu Hassan’s 2024 visit to South Korea, with Tanzania seeking to accelerate projects that could deliver tangible economic returns.
Among those highlighted was the proposed Smart ICT College in Dodoma, which is expected to become one of the first projects to enter implementation.
Other projects discussed included the construction of an international conference and exhibition centre in Zanzibar, the Binguni Referral Hospital and the development of Muhimbili National Hospital.
The proposed Ifakara-Mahenge road was also discussed, with its strategic importance linked partly to the development of graphite mining activities in the area.
The two governments also agreed to jointly review the cost and scope of a proposed purchase of passenger coaches for Tanzania’s Standard Gauge Railway (SGR), with the aim of ensuring that the project remains financially and operationally viable.
The emphasis on reviewing project scope and costs highlights the pressure facing governments to ensure development financing translates into projects that can be completed within realistic budgets and timelines.
Korea eyes Tanzania’s digital economy
The discussions also opened a wider investment agenda around Tanzania’s digital economy, with Communications and Information Technology Minister Angellah Kairuki promoting opportunities for Korean technology companies.
Kairuki said Tanzania was seeking investment in digital infrastructure, including data centres, 5G networks, fibre-optic connectivity and telecommunications towers.
She also invited Korean technology companies to participate in the expansion of e-government services, including digital platforms supporting education, healthcare and other public services.
The government is also seeking investment in financial technology, health technology, agricultural technology and solutions capable of improving productivity across agricultural value chains.
Kairuki said discussions had also touched on financing and investment opportunities involving the state-owned Tanzania Telecommunications Corporation (TTCL), including fibre infrastructure, TTCL outlets and telecommunications services.
The push comes as Tanzania seeks to turn its large young population into an economic advantage by expanding technology-driven employment and investment opportunities.
For Korean companies, Tanzania offers a combination of a growing consumer market, expanding digital infrastructure requirements and demand for technology across sectors ranging from finance and healthcare to agriculture.
AI moves up the investment agenda
The discussions took place against the backdrop of this year’s KOAFEC forum, held under the theme “Harnessing AI and Digital Infrastructure for Africa’s Transformation.”
The forum brought together African finance and economic ministers, African Development Bank officials, companies and international development partners to examine how artificial intelligence and digital infrastructure can accelerate economic transformation.
For Tanzania, the immediate opportunity lies in converting Korea’s financing commitments into operational projects while simultaneously attracting Korean private capital into emerging areas of the digital economy.
The success of the US$2.5 billion pipeline will ultimately depend not on the size of the commitment, but on how quickly projects clear feasibility, design, financing and procurement stages and begin delivering economic value. For Tanzania, that means roads, hospitals, education facilities and digital infrastructure reaching completion on time. For Korean investors, it could create a broader platform for long-term participation in one of East Africa’s largest and fastest-expanding markets.
