Inspired by South Korea’s economic success, Rwanda, now under the leadership of strongman Paul Kagame (a.k.a. Africa’s Lee Kuan Yew), wants to emulate its experience. And here comes a Korean engagement in one of Africa’s fastest growing markets, not simply in terms of financial aids and project assistance, but also in foreign direct investment, and later on, a gradual emigration of Koreans to the country to set up new businesses and empower local population.
Read the full article in Foreign Policy.
To whatever degree that South Korea’s expanding Africa footprint has been informed by its own successes, the process also exposes some of the Korean growth model’s limitations. Aside from several oil and mining deals, much of Korea’s activity in Africa, including a major push by Samsung into the mobile phone market, can be linked to increasingly saturated consumer markets, and therefore limited growth potential, at home. From a workforce perspective, too, Korea’s hierarchical office culture and lengthy working hours have raised the attractiveness of overseas business and aid assignments. Jeong Jun-ho, chief strategy officer of Olleh Rwanda Networks, the KT-Rwandan joint venture, says he volunteered for his placement largely because it meant he’d have more time with his family. (He relocated with his wife and children.)
Then there are entrepreneurs like Shin Ji-yoon, who was driven to Africa in part by the influence of Korea’s chaebol, which, despite playing an essential role in driving the country’s growth, are increasingly blamed for inhibiting small and medium enterprises, discouraging entrepreneurship, and stifling innovation. “In the United States, everybody can be an entrepreneur and if they fail, oh OK, they can do another business,” Shin, 26, says over coffee at Rz Manna, a Korean-style cafe and pastry shop that he and five university colleagues opened in Kigali, Rwanda’s capital, last year. “In Korea, if I fail the first time, everybody will say, ‘You’re a loser.’ And if I succeed, and I invent a really good thing, a big company will just come and take it over.”