The Government of Korea established the Economic Development Cooperation Fund (EDCF) on June 1, 1987 with the purpose of promoting economic cooperation between Korea and developing countries.
Drawing on Korea’s own development experience over the years, the EDCF assists partner countries by providing funding for their industrial development and economic stability. EDCF operations and principal responsibilities rest with the Ministry of Strategy and Finance (MOSF), which also coordinates policy matters with other relevant ministries.
MOSF further entrusts the Export-Import Bank of Korea with the responsibility of administrative management of the “Fund”, including appraisal of project, execution of the loan agreements, and loan disbursements. Other duties include principal/interest payments collection, project supervision, and ex-post evaluation of project operations.
Korea’s Development Cooperation in Kenya
The Export-Import Bank of Korea was established in 1976, with the aim to facilitate development of Korea’s economy and enhance economic cooperation with foreign countries through the provision of financial supports for export and import transactions, overseas investments projects, and the development of overseas natural resources.
Internationally, the Bank is commonly known as the “Korea Exim Bank” (KEXIM). In Kenya, Korea Exim Bank is currently financing the following projects:
- Kenya Advanced Institute on Science and Technology (KAIST) Project
- Outer Ring Road section of the Bus Rapid Transport (BRT) line Project
- Nairobi Intelligence Traffic System (ITS) Phase I , Phase II Project
The KAIST Project in Kenya has displayed immense potential towards improving Kenya’s science and technology capabilities. The Republic of Korea used a similar model to promote itself to national industrialization and economic growth in 1970’s. Korea’s government remains committed to ensuring the strategic partnerships and active knowledge sharing programs shall assist Kenya to;
- Build technical capacity
- Accelerate industrial growth
- Improve quality of life of Kenyans
Project construction is currently on-going with expected completion date of mid-2023.