The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman BANG, Moon-kyu, "Korea Eximbank") joined the efforts of the Ethiopian government’s emergency measures against the COVID-19.

Korea Eximbank announced that it signed loan agreements with the Ethiopian government to provide a total of USD 70 million, which covers both the "Medical Equipment Provision Project" amounting to USD 30 million and the "COVID-19 Emergency Response Budget Support Program" worth USD 40 million through the Korean government’s aid program, the Economic Development Cooperation Fund (EDCF), on Tuesday, June 30.

Korea Eximbank Chairman Bang Moon-kyu and Ethiopia’s Financial Minister Ahmed Shide each signed the loan agreements in the afternoon of June 30 (Seoul time) remotely in their countries, through videoconferencing, in the midst of the ongoing pandemic crisis. In the signing ceremony taking place in Seoul, Ethiopian Ambassador to Korea Shiferaw Shigutie participated to support the bilateral cooperation between the two countries in curbing the COVID-19.

After signing the agreements, Chairman Bang remarked, "We hope this financing will help contribute to solidifying the two countries’ bilateral partnership as well as improving Ethiopia’s public health system by supporting Ethiopia’s high priority policy in dealing with the COVID-19 pandemic.

Ethiopia is the first African country to which Korea Eximbank provides EDCF concessional loans for the purpose of emergency response to tackle the COVID-19.

This financing is part of the government's plan to implement the EDCF Emergency Assistance Plan for COVID-19 Response in Developing Countries, which was announced at a ministerial meeting on international economic policy in April.

Korea has ties with Ethiopia as the latter took part in the Korean War (1950-1953), which made this deal more symbolic and meaningful.
Ethiopia’s economy has been fast growing, averaging more than eight percent growth rate over the past five years. However, since the first confirmed case of the COVID-19 has been reported, the virus spread at a rapid pace threatening the nation’s vibrant economic activity.
It is therefore imperative to improve testing capabilities and medical equipment in the country to help overcome such situation.

With the financial support, it is expected that Ethiopia and Korea will deepen partnership while improving the healthcare environment in Ethiopia. Also, the K-quarantine model introduced through the EDCF funding will facilitate Korean companies’ entry in Africa.

A Korea Eximbank official said “Considering the special relationship between the two countries and current circumstances of the pandemic, the loan procedures have been streamlined from 24 months to 15 months to enable Ethiopia to more promptly combat COVID-19”.

He added, "It is meaningful that we have secured a bridgehead for Korean small-and medium-sized enterprises that produce quarantine supplies and medical equipment, such as artificial respirators and test kits, to enter the African market."