The African Development Bank Group and Hyundai Motor Group have agreed to explore cooperation in sustainable mobility and industrial development in Africa, under a Letter of Intent exchanged during a Bank delegation's visit to the automaker's Seoul headquarters on 8 September 2026.
The Letter of Intent outlines six areas for cooperation: (i) clean energy transition, including renewables and green hydrogen; (ii) sustainable mobility; (iii) transport and logistics infrastructure; (iv) electric vehicle value chains leveraging Africa's critical minerals; (v) industrial manufacturing capacity; and (vi) talent development for the mobility and energy sectors.
The Bank Group's Chief Economist and Vice-President for Economic Governance and Knowledge Management, Prof. Kevin Chika Urama, represented Dr Sidi Ould Tah, President of the African Development Bank Group at the meeting. President Ould Tah was in Seoul co-chairing the 8th Korea-Africa Economic Cooperation (KOAFEC) Ministerial Conference, which marked the 20th anniversary of the Korea-Africa partnership.
During his visit, President Ould Tah encouraged Korean companies, including Hyundai Motor Group, to expand their investments across Africa, highlighting the continent's growing opportunities in infrastructure, manufacturing, sustainable mobility, and industrial value chains.
He said Africa offers Korean companies a strong commercial opportunity, with local processing helping shorten and diversify global supply chains, reduce disruption risk, create demand for Korean machinery and services, and develop the skilled workforce needed for future operations. Dr Ould Tah stressed that value addition is not charity but a strategic investment in supply-chain security and long-term competitiveness.
Prof Urama met Hyundai Motor Group Vice Chair Jaehoon Chang to discuss Africa's development priorities and potential partnership opportunities.
"I am pleased to convey President Sidi Ould Tah's appreciation to Mr Jaehoon Chang, Vice Chair of Hyundai Motor Group, and his team for hosting us in Seoul," he said. "We see Hyundai Motor Group as a strategic partner in Africa's economic transformation. We look forward to translating this intent into the joint preparation of projects that combine Hyundai's and the African Development Bank's respective track records -- in sustainable mobility, hydrogen and clean energy technologies, industrial manufacturing, critical minerals and electric vehicle value chains, climate-smart infrastructure, talent development and policy cooperation across the African continent."
The Letter of Intent supports the Bank Group's Four Cardinal Points strategic framework. Electric-vehicle and critical-minerals value chains help build resilient infrastructure and competitive value chains, while talent development advances the objective of turning Africa's demographics into a dividend.
The partnership aligns with the Bank Group's ambition to unlock Africa's capital potential by crowding in private investment, technology and long-term industrial capital for transformative projects across the continent.
The Letter of Intent also reflects the Bank Group's role as a platform for financing, investment and private capital mobilisation across the continent. Beyond its own balance sheet, the Bank Group de-risks operations, structures bankable projects and brings public and private capital together at scale -- a capability it intends to place at the service of this cooperation.
The intended cooperation would draw on the complementary strengths of the two institutions, combining the Bank Group's development finance expertise and convening power with Hyundai Motor Group's technological capabilities, investment capacity and industrial capabilities.
"This partnership marks the starting point of a long-term collaboration to support Africa's energy transition and strengthen industrial competitiveness," Mr Chang said. "Building an integrated financing package that links policy finance with private capital, while securing investment stability, is essential to enable the successful execution of our core African business initiatives. We will continue to expand our cooperation with the African Development Bank."
The meeting builds on Hyundai Motor Group's multi-year effort to deepen its understanding of Africa's markets and the continent's evolving needs. A Hyundai Motor Group delegation visited Morocco in May 2026, as part of its Africa talent development efforts, and met African Development Bank Group officials to discuss the Bank Group's mandate, investment approach, and project evaluation processes.
The Letter of Intent is non-binding and creates no financial commitment for either institution. Any project arising from it would be subject to the African Development Bank Group's standard eligibility, due diligence, assessment and approval processes.
The engagement aligns with the African Development Bank Group's broader push to attract private-sector capital, technology and expertise for Africa's development, and marks a step towards linking global industrial capability to the continent's development agenda.
