The International Finance Corporation (IFC) and South Korea's Posco, the world's numbeer three steelmaker, on Wednesday announced a year-long memorandum of understanding to cooperate on business development in sub-Saharan Africa.
Under the accord, the two organisations will pursue investment opportunities in manufacturing, mining and infrastructure.
Posco is involved in engineering and construction, power generation and natural resource development through its various subsidiaries, and has expanded around the world. It is now targeting Africa.
“Africa is an increasingly important part of the global economy. Posco and its affiliated companies have a growing interest in finding new investment opportunities in Africa in the steel manufacturing, natural resource development, infrastructure, energy and information technologies sectors,” Posco senior VP and head of strategy Young-Hoon Lee said in a statement.
The new cooperation reflects the growing interest of international project sponsors in sub-Saharan Africa, and IFC’s increasing involvement in ‘South-South investment’ – 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.
The Republic of Korea is today a high-income, developed country that is part of the Group of Twenty and member of the Organisation for Economic Cooperation and Development.
“IFC, a member of the World Bank Group, wants to help investors from other dynamic, fast-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,” IFC’s country manager for Southern Africa Saleem Karimjee said.