Export-Import Bank of Korea launches first EDCF AI project with $170m loan to Tanzania

The Export-Import Bank of Korea is launching its first AI-sector project under the Economic Development Cooperation Fund, extending a $170 million loan to Tanzania to build an institution that will train specialists in AI, robotics and other advanced technologies.

The bank announced Thursday that it had signed a $170 million EDCF loan agreement for Tanzania's "AI and Digital Technology Education Institution Construction Project."

Senior Deputy Governor Lee Dong-hoon signed the agreement in Dar es Salaam on Wednesday with Natu Mwamba, Tanzania's deputy finance minister. The EDCF is a long-term, low-interest loan fund that supports the construction of economic and social infrastructure in developing countries; the Export-Import Bank of Korea administers it under a mandate from the Ministry of Economy and Finance.

The project marks the first time the EDCF has channeled funds into the AI sector. It is also the inaugural project under the government's "K-AI Package," an initiative that uses concessional loans to help developing countries build infrastructure and adopt AI technology simultaneously.

The project site covers 35,000 square meters. A technical education institution will be built there to train personnel in physical AI — a field combining AI with robots and other machines that enables systems to perceive, reason and act in real-world environments.

The institution will house four departments: AI, robotics, data analytics and the Internet of Things. It will also include a high-performance AI training facility equipped with AI laboratories, AI computing units, high-speed memory chips and fast networking infrastructure.

South Korean AI technology and educational systems will be used in both instruction and institutional operations. The facility will adopt an online system for managing learning and assessment, as well as a cloud system for sharing curricula in real time.

The Tanzanian government plans to develop a large-scale AI data center and AI cluster near the institution and attract related companies to the area. The Export-Import Bank of Korea intends to use the project as a springboard for South Korean AI and digital companies to enter Africa's infrastructure market.

"We will use this EDCF support to Tanzania, which is strategically nurturing its AI and digital industries, to solidify the foundation for expanding our presence in Africa," Lee said. "We will make this project the first step toward planting Korean AI technology on the continent, and actively back Korean companies' entry into overseas infrastructure projects across EDCF priority areas — including AI and digital, culture, and supply chains."

Meanwhile, the bank signed a memorandum of understanding on nuclear power project financing cooperation with Turkey's nuclear energy authority on Wednesday, agreeing to help structure financing for the new Sinop nuclear power plant project. The Export-Import Bank of Korea plans to review financing options from the project's earliest stages to support Team Korea's bid to win the contract.