South Korea has approved a $170 million loan to build an artificial intelligence and digital technology institute in Tanzania, marking the first AI project financed through its Economic Development Cooperation Fund (EDCF).
The project will establish an advanced technology institution offering training in artificial intelligence, robotics, data analytics and Internet of Things technologies, according to South Korea’s Ministry of Economy and Finance.
The deal connects two major economies in their respective regions at a time when both are navigating strained relations with the United States for different reasons.
Even so, their regional economic weight remains significant. South Korea is projected to remain Asia’s fourth-largest economy in 2026, behind China, Japan and India, according to IMF projections.
Tanzania, meanwhile, is projected to generate about $94.9 billion in economic output, placing it among East Africa’s largest economies.
