LOI signed for Africa's sustainable development
Long-term cooperation on clean energy transition and more
Hyundai Motor Group said Wednesday that it will partner with the African Development Bank to support Africa's transition to clean energy, its industrialization and the foundations for sustainable growth. The two sides will cooperate on the shift to clean energy, including hydrogen, as well as on developing an electric vehicle value chain that makes use of critical mineral resources.
Hyundai Motor Group signed a letter of intent with the AfDB on Tuesday at its Yangjae headquarters in Seocho-gu, Seoul. The agreement covers cooperation on Africa's industrialization, transportation infrastructure development and clean energy transition.
The AfDB is Africa's largest multilateral development finance institution, carrying out development finance, investment attraction and project development to support sustainable economic growth and industrialization across the continent.
Officials from Hyundai Motor Group's Africa-related divisions attended the signing ceremony, including Vice Chairman Jang Jae-hoon, Hyundai Engineering President Joo Woo-jung and Hyundai Capital President Jeong Hyung-jin. Hyundai Motor and Kia Global Strategy Office Vice President Kim Heung-soo and Chief Networking Officer Vice President Kim Il-beom also attended. So did Hyundai Motor Group Management Research Institute Vice President Shin Yong-seok.
Chief Economist and Vice President Kevin Chika Urama led the AfDB delegation, standing in for President Sidi Ould Tah. Also on the delegation was Senior Director for Co-financing, Syndication and Client Solutions Max Magor Ndiaye. The delegation traveled to Korea for the 8th Korea-Africa Economic Cooperation Ministerial Conference, a four-day event that began Tuesday in Seoul.
Through the LOI, the two sides plan to link Hyundai Motor Group's technology and business capabilities in mobility, energy, infrastructure and industrialization with the AfDB's expertise in development finance, investment attraction and project development. They aim to identify promising projects and growth opportunities across Africa and map out the scope and direction of cooperation in each area.
The cooperation covers six main areas. These include the transition to clean energy based on renewable sources, including green hydrogen, and building sustainable mobility solutions across Africa. They also include developing transportation and logistics infrastructure such as roads, railways and ports, and developing an electric vehicle value chain using critical mineral resources. The remaining areas are strengthening industrialization and manufacturing capabilities, and cultivating talent for Africa's future mobility and energy industries.
Meanwhile, following the signing ceremony, the AfDB delegation and Hyundai Motor Group shared views on Africa's development finance landscape and major industrial challenges and discussed long-term cooperation plans. The delegation also toured the lobby of Hyundai Motor Group's Yangjae headquarters, where they viewed demonstrations of the group's future mobility technologies. These included an irrigation robot, a security robot, a delivery robot and the Mobed platform.
"This partnership marks the starting point of a long-term relationship aimed at Africa's energy transition and strengthening its industrial competitiveness," said Hyundai Motor Group Vice Chairman Jang Jae-hoon. "Building an integrated financial package that links policy finance with private capital and secures investment stability is essential for the steady execution and successful commercialization of key projects in Africa, and we will continue to expand our cooperation with the AfDB."
African Development Bank Vice President Kevin Chika Urama said, "The experience Hyundai Motor Group has accumulated, the technologies it has developed, and its vision for the future align closely with the African Development Bank's vision of turning Africa's potential into shared prosperity, which is why Hyundai Motor Group is an important strategic partner for the AfDB."
eyre@heraldcorp.com
