President Samia is on an official visit to the country at the invitation of President Yoon Suk Yeol, highlighting the diplomatic ties between Tanzania and South Korea. Photo: State House
Tanzania’s South Korea Loan: Debunking Myths, Embracing Opportunities in International Relations
By Adonis Byemelwa
In the wake of the Voice of America’s (VOA) explosive report alleging Tanzania’s exchange of strategic sea and mineral territory for a substantial $2.5 billion loan from South Korea, the VOA has swiftly revised its headline, indicating a seismic shift in the unfolding narrative.
This headline alteration underlines the intensity of the debate swirling around the purported agreement, as stakeholders clamor for clarity and transparency amidst the swirling maelstrom of conflicting accounts and contentious claims.
As the dust settles on this diplomatic storm, the spotlight shines ever brighter on the intricacies of international relations, economic diplomacy, and the delicate balance between development imperatives and national sovereignty.
Originally, the headline declared “Tanzania has received a loan from South Korea and given a portion of its ocean and minerals.” However, in response to the ensuing public discourse, the headline has now been amended to the more neutral “Tanzania has borrowed 2.5 billion dollars from South Korea.” This modification follows extensive deliberation across various platforms, prompting the Tanzanian government to provide a definitive response to address the concerns raised.
In a robust rebuttal to the VOA report, Tanzanian Ambassador to South Korea, Togolani Mavura, vehemently refuted the claims, categorically denouncing them as misinformation.
Ambassador Mavura emphasized that during President Samia Suluhu Hassan’s official visit to Korea, only one agreement was inked—an agreement securing a $2.5 billion concessional loan earmarked for critical infrastructure projects within Tanzania.
He clarified that Tanzania had not ceded any territory or assets in exchange for the loan, underscoring that the loan merely represented a continuation of the concessional loans Tanzania had previously received from South Korea.
Mobhare Matinyi, the Director of Information Services and Government Spokesperson, echoed Ambassador Mavura’s sentiments, providing a meticulous breakdown of the loan’s terms and elucidating the nature of the agreements brokered during President Samia’s diplomatic mission.
In contemporary diplomatic tensions between South Korea and Tanzania, it’s imperative to delve into the historical backdrop shaping their relationship. Despite both nations gaining independence around the same time, their developmental trajectories have diverged significantly. While South Korea has surged ahead to become a global economic powerhouse, Tanzania has grappled with developmental challenges.
Recent GDP figures highlight the stark economic contrast between the two countries. With Tanzania’s GDP standing at approximately $66 billion and South Korea’s at a staggering $1.6 trillion, the disparity underlines the vast difference in economic size and development levels.
Despite this gap, Tanzania’s economy shows promise, with ongoing efforts focused on diversification and infrastructure enhancement to bolster its economic prospects.
Examining these dynamics through a historical lens adds depth to the contemporary diplomatic discourse, shedding light on the complexities of international relations and the enduring impact of historical legacies on present-day interactions between nations.
South Korea has emerged as a global economic powerhouse, experiencing rapid industrialization and sustained economic growth. In contrast, Tanzania has encountered numerous developmental challenges, grappling with issues such as poverty alleviation, infrastructure development, and healthcare provision.
Critics have drawn attention to the developmental disparities between the two nations, highlighting the contrasting trajectories of progress.
While South Korea has ascended to the ranks of developed nations, Tanzania continues to confront formidable obstacles on its path to economic prosperity and social advancement.
In the realm of international development discourse, the insights of economist Professor Dambisa Moyo offer a thought-provoking perspective. Moyo advocates for a paradigm shift in traditional aid models, challenging the efficacy of perpetual aid dependency.
Instead, she champions solutions that prioritize self-sufficiency and sustainable development, urging African nations to leverage their resources and talents to foster economic empowerment and resilience.
In an exclusive interview on BBC Swahili on June 4th, 2024, President’s Office – Planning and Investment Minister Prof Kitila Mkumbo emphasized the necessity of loans for national development, stating, “No country can excel without taking loans.”
He pointed to examples of developed nations like China, Japan, and the United States, which have achieved significant progress through concessional loans. Prof Mkumbo highlighted Tanzania’s meticulous oversight by professional technocrats to ensure the prudent utilization of loans, noting, “Tanzania has meticulous and professional technocrats who oversee the far-ranging impacts of loans.”
The Tanzanite Bridge in Dar es Salaam, spanning 1.03km and built from 2018 to 2021 for Sh 243 billion, jointly funded by South Korea and Tanzania, will ease traffic with 52,000 daily vehicles and boost tourism. Photo: Courtesy
The South African opposition party Economic Freedom Fighters (EFF) leader, Julius Malema, echoed sentiments regarding cautious scrutiny of loan agreements.
Malema warned against incumbents signing controversial loans extending over 30 years, urging vigilance from the youth to hold leaders accountable for long-term consequences.
He stated, “Incumbents who sign controversial loans ranging over 30 years should be opposed by the youth in equal measure.”
Meanwhile, over 20 African nations convened by South Korea are charting out a joint development agenda, reflecting a concerted effort towards regional cooperation and progress.
This initiative aims to foster collaboration and mutual support among African countries, as highlighted by Tanzanian Ambassador to South Korea, Togolani Mavura, who emphasized the importance of regional cooperation, stating, “This time over 20 African nations were summoned by South Korea to chart out development agenda.”
In a historic gesture, Italy extended exclusive invitations to African leaders for the Italy-Africa Summit scheduled for January 28th to 29th, 2024, marking a pivotal moment in the continent’s diplomatic landscape. This unprecedented move reflects Italy’s commitment to fostering meaningful dialogue and collaboration with Africa, in line with global efforts to elevate Africa’s voice on the international stage.
The summit’s poignant theme, “A Continent Rich in Resources, Led Astray by Leadership Woes,” serves as a poignant reminder of the systemic challenges facing African nations and underscores the urgent need for concerted action and visionary leadership.
This visionary initiative has struck a chord with Tanzania’s Ministry of Foreign Affairs and East African Cooperation, which views the summit as a golden opportunity to strengthen bilateral relations, showcase Tanzania’s immense potential for investment and collaboration, and chart a course toward a brighter, more prosperous future for Africa and its people.
Amidst the anticipation surrounding Tanzania’s President Samia’s visit to the Vatican, discussions have been ignited regarding the enduring legacy of former President Julius Kambarage Nyerere and the critical imperative for African unity and self-determination.
Dr. Arikana Chihombori-Quao’s impassioned advocacy for pan-African solidarity and decolonization reverberates profoundly, serving as a rallying cry in the ongoing struggle against systemic oppression and the relentless pursuit of genuine empowerment and autonomy.
Her call to action resonates deeply, emphasizing the imperative of collective organization to shape the Africa we aspire to build: “We need to organize to build the Africa we desire.”
This sentiment of unity and empowerment finds resonance in Tanzania’s recent engagement with South Korea, as the nation secures a monumental $2.5 billion loan for critical infrastructure projects.
In the intricate dance of international diplomacy and economic growth, Tanzania seizes this pivotal moment, demonstrating Africa’s resilience and unwavering resolve to carve its path to prosperity and self-sufficiency. As the nation harnesses this opportunity for tangible progress, it serves as an inspiring beacon, showcasing Africa’s potential and determination on the global stage, and igniting hope for a brighter future across the continent.
