South Korea has approved a $170 million concessional loan to finance the construction of an artificial intelligence and digital technology institute in Tanzania, marking its first AI-focused project financed through the Economic Development Cooperation Fund (EDCF).
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South Korea’s Ministry of Economy and Finance said on Sunday that the EDCF Operating Committee approved the Tanzania AI and Digital Technology Education Institute project at its 159th meeting.
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The institute will train workers in artificial intelligence, robotics, data analytics and the Internet of Things as Tanzania seeks to expand its digital economy and develop skills in emerging technologies.
The project includes the construction of a campus and classrooms, an AI laboratory and facilities for practical training. Equipment will include robotics systems, drones and 3D printers, alongside information and communications technology infrastructure and network systems.
A high-performance AI training facility equipped with AI processors, high-bandwidth memory and high-speed networking will also be established, the ministry said.
South Korean AI technologies and education models will be incorporated into curriculum development, facility operations and the training of Tanzanian teaching staff.
The project will be financed as a tied loan, meaning contracts under the project will be available to South Korean companies. Seoul expects the initiative to create opportunities for Korean AI, education technology and construction companies seeking to expand into the African market.
Tanzania plans to use the institute as a model for establishing additional training institutions and developing large-scale data centres, the ministry said.
The project is aligned with Tanzania’s Vision 2050 development strategy, which seeks to promote AI and digital industries and targets per capita gross domestic product of $7,000 by 2050.
South Korea also plans to link the EDCF financing with its Knowledge Sharing Program, a global AI hub and multilateral development bank trust funds to support the institute’s establishment and operations.
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The EDCF, established in 1987, provides concessional financing to support economic and industrial development in developing countries.
The government also revised EDCF regulations to expand its K-AI Package programme, allowing it to propose projects directly to developing countries after consultations with relevant ministries.
Under the revised rules, EDCF projects worth $100 million or more will require review and approval by the Fund Operating Committee, which includes representatives from relevant government ministries.
The Tanzania project highlights South Korea’s efforts to combine development financing and technology cooperation with opportunities for its companies to expand into Africa’s growing digital economy.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.



