Seoul: Tanzania is emerging as an alternative supply chain hub for South Korea, with abundant critical mineral resources that offer scope for deeper and mutually complementary bilateral cooperation, its top envoy to Seoul has said. Tanzanian Ambassador to South Korea Togolani Mavura made the remarks in an interview with Yonhap News Agency, noting that South Korea is the first and only country with which Tanzania has so far signed a bilateral framework for cooperation on critical minerals.
According to Yonhap News Agency, Mavura emphasized the potential for collaboration between the two nations in developing critical minerals. 'While Korea has vulnerabilities associated with supply chain constraints, we have vulnerabilities in terms of financing and technology to develop the sector,' he said. Tanzania, known for its rich deposits of minerals including graphite and nickel, is poised to become a key supplier for South Korea. This potential has spurred partnerships with South Korean companies, such as POSCO's investment in Tanzania's Mahenge mine to secure significant quantities of natural graphite.
The cooperation is further underscored by the fact that only 16 percent of Tanzania's potential mineral deposit area has been surveyed, suggesting untapped opportunities for both countries. Mavura highlighted the potential for Tanzania to become Korea's alternative supply chain and a gateway for Korean companies' expansion into Africa.
Diplomatic relations between South Korea and Tanzania date back to 1992, with significant development aid and projects linking the two countries. Since 2010, Tanzania has been a priority partner for South Korea's official development assistance (ODA), which will extend into 2025-30. Tanzania is the largest recipient of South Korea's concessional loan program for development cooperation in Africa, with a framework agreement worth $2.5 billion for 2024-28.
The countries are negotiating an economic partnership agreement similar to a free trade agreement, with an added focus on development cooperation. Mavura pointed out that South Korea's trade with Africa remains minimal, representing less than 2 percent of its global trade, and encouraged Korean companies to overcome their risk-aversion and explore opportunities in Africa.
Highlighting South Korea's commitment to engaging with Africa, Mavura mentioned the country's first summit with African nations scheduled for June 2024, which includes a $14 billion financing package to support private sector investment. This initiative aims to de-risk and incentivize Korean companies interested in Africa.
Looking ahead, Mavura expressed optimism for expanded cooperation between South Korea and Tanzania across various sectors, including critical minerals, green transition, agriculture, and fisheries. He envisions Tanzania becoming Korea's investment and trade hub in Africa, a reliable supplier of critical minerals, and a partner in the green transition and food supply chain.