Hyundai Motor Group has joined hands with the African Development Bank (AfDB) to explore new business opportunities in Africa, including electric vehicle value chains, clean energy, and transportation and logistics infrastructure.
Hyundai Motor Group announced on the 9th that it signed a 'Letter of Intent (LOI) for Cooperation on Future Growth, Including Industrialization and Transportation Infrastructure Development in Africa and Clean Energy Transition' with AfDB at its Yangjae headquarters in Seoul Seocho-gu on the 8th.
AfDB is Africa's largest multilateral development financial institutional investor, which carries out development finance, investment attraction, and project development to support economic growth and industrialization in Africa.
Both parties plan to identify high-potential projects in Africa by combining Hyundai Motor Group's capabilities in mobility, energy, and infrastructure with AfDB's expertise in development finance and investment attraction.
The areas of cooperation include: (1) clean energy transition based on renewable energy such as green hydrogen; (2) establishment of sustainable mobility; (3) development of transportation and logistics infrastructure such as roads, railways, and ports; (4) development of electric vehicle value chains using critical minerals; (5) strengthening industrialization and manufacturing capabilities; and (6) training talent in future mobility and energy sectors.
In particular, the scope of cooperation includes building an electric vehicle value chain utilizing critical minerals possessed by Africa and expanding its manufacturing base. The plan is to seek medium- to long-term business opportunities that go beyond simple vehicle sales by linking local resources with production and infrastructure.
Jang Jae-hoon, Vice Chairman of Hyundai Motor Group, said, "This cooperation marks the starting point of a long-term partnership aimed at Africa's energy transition and strengthening industrial competitiveness." He added, "Establishing an integrated financial package that links policy finance with private capital and ensures investment stability is essential for the stable implementation and commercialization of key projects. Therefore, we will continue to expand our cooperation with AfDB."
Kevin Chika Urama, Senior Economist and Executive Vice President of AfDB, stated, "The experience, technology, and future vision accumulated by Hyundai Motor Group closely align with AfDB's vision to transform Africa's potential into growth." He further noted, "Hyundai Motor Group is an important strategic partner for AfDB."
Attendees at the signing ceremony included Vice Chairman Jang, along with executives involved in Africa-related business within the group, such as Woo-jeong Jung of HyundaiJi Ni-eo-ring (President) and President Hyung-jin Jeong of Hyundai Capital. The AfDB delegation visited Korea to attend the '8th Korea-Africa Ministerial Economic Cooperation Meeting (KOAFEC).'
in INDUSTRY
