Cozying up to Africa

For closer ties with African nations

Commerce, Industry and Energy Minister Chung Sye-kyun met with his Egyptian counterpart, Mohamed Rashid, in Cairo on March 7 during President Roh Moo-hyun's state visits to three African countries including Egypt, Nigeria and Algeria.
The two cabinet ministers discussed a number of measures to invigorate economic exchanges between their countries ranging from trade, investment and cooperation between SMEs in their two countries.
The government officials agreed that Korea will dispatch a trade delegation to Egypt to sustain the current rate of exports to the North African country and Korea also agreed to send a purchasing mission to Cairo in November to increase Egyptian exports to South Korea in an effort to balance bilateral trade which is in Korea's favor. Korea recorded $5.1 billion in surplus with its trade with the North African country in 2005.
The ministers also agreed to have a cooperation agreement to boost cooperation between small companies in their countries focused on the complimentary nature of those companies in their countries.
Korea's technology will complement Egypt's manpower and natural resources to the maximum extent possible. The areas of cooperation will include the exchange of industrial information, the exchange of industrial missions and promoting 10 cooperative projects in such sectors as industrial machinery, electronics, and software. They also agreed that an MOU will be signed for cooperation in the area of export insurance. Korea Export Insurance Corp. will sign an MOU with its Egyptian counterpart to cover exports of plants to the North African country and expanding joint advances into third countries.
The projected MOU will cover such issues as resolution of difficulties facing traders of both countries, the exchange of information on credit exports, and the promotion of joint projects in other countries.
Minister Chung also met with Egyptian Electric Energy Minister Hassan Youness and Mahmoud Mohiieldin, the minister of investment and discussed a wide range of subjects including cooperation in power sector, trade,
and investment with the two Egyptian officials and asked for their help to Korean companies trying to win projects in their countries. Egypt does not have much economic exchange with Korea yet, but the country has larger potential for economic relations with Korea compared with other African countries in the areas of economic reform, liberalization, political stability, and the supply of labor, among others. They saw eye-to-eye on boosting the two countries trade and investment by doubling the current level by 2010.
The two ministers also agreed to conclude an MOU between the power and IT sectors of the two countries. Korea Electric Power Corp. will sign a cooperative agreement with its
Egyptian counterpart to set up a cooperative area and make advancement into the Middle East and African region.
Details of the agreement will specify the cooperative area in the power generation, and distribution. Promote the exchange of technology in power distribution automation system, power line communication, AMR, SCADA and other electric IT areas along with experts who will conduct joint research and training.
The two ministers also agreed to sign an MOU for cooperation in the area of new and reusable energy industry to boost their countries international competitiveness in the industry. Korea Electric Power Corp. will sign the MOU with the Egypt New Energy Office, which will provide for cooperation in the exchange of information, technology development through the exchange of experts in the industry and promotion of projects in the futuristic industry.
An MOU will also be signed in the area of Korean firms's advancement in Egypt and mutual investment.
Korea Investment-Trade Agency (KOTRA) will sign the MOU with its Egyptian counterpart.
The Egyptian government promised to support Korean firms's entry into Egypt to undertake the construction of its petrochemical plant and power generation plant complexes.

Results from Nigerian Visit:
Korea signed an agreement for the exploration of two offshore oil blocks with Nigeria during President Roh's visit to the African country. Korea will receive 2 billion barrels of oil in exchange for the project. The quantity will cover 2.5 years of oil consumption in Korea. Nigeria has allowed Korean firms to participate in offshore oil exploration projects in exchange for Korean firms undertaking the construction of power generation facilities in the African country, opening of a new model for Korea's participation in overseas oil exploration projects in exchange for building power generation plants. Under the agreement with Nigeria, when a 2.25 million kw power plant and an oil pipeline stretching 1,200 km are completed in 2010, the power plant would supply 20 percent of power needed by the African country and Korea would be able to export $3.3 billion worth of power plant facilities, gas pipes and heavy construction equipment.Korea and Nigeria have concluded a comprehensive MOU on oil, gas, power, and new and reusable energy development projects, including the exploration of minerals. MOCIE Minister
Chung noted that Nigeria is one of the next 11 countries to follow the steps of economic development of BRICs, and Korea should promote economic cooperation with Nigeria instead of providing aid. Korea agreed to send a trade mission to Nigeria to correct imbalance in trade in favor of Korea in the amount of $4.5 billion in 2005.

Korea and Algeria:
Korea and Algeria agreed to cooperate in a number of critical areas as strategic partners. The cooperation areas included natural resources, energy, plant and IT industry. The leaders of the two countries agreed to step up cooperation in natural resources, energy and new and reusable energy development areas, the North African country being an OPEC member.
Algeria is in the middle of expanding its infrastructure with enough U.S. dollars flowing into its coffer due to high oil prices, which will further expand exports of plants and construction services from Korea
The Korea National Oil Corp. and the Algerian National Oil Corp. have signed an MOU for the expansion of oil reserve storage facilities during President Roh's visit to the country. The storage will be expanded to hold 6 million barrels of crude oil by 2008 from 2 million barrels with the priority purchase rights of oil from the storage given to Korea. Korea will also earn 6 billion won a year as a thru put charge from the storage reserves. nw

(Left photo) MOCIE Minister Chung Sye-kyun, left, and his Egyptian counterpart Mohamed Rashid look on the signing of an MOU by their officials in Cairo March 8. (Right) MOCIE Minister Chung Sye-kyun and his Egyptian counterpart Mohamed Rashid and their officials discuss bilateral economic relations between Korea and Egypt in Cairo.

NRC and KOTEF hold an MOU signing ceremony on March 8 in Egypt.

MOCIE Minister Chung Sye-kyun