Asia’s fourth-largest economy bets $170 million to artificial intelligence in East Africa’s third-largest economy amid US scrutiny

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.

The financing also comes as Tanzania accelerates efforts to attract foreign investment and position technology as a key pillar of its long-term growth strategy.

Under Vision 2050, the East African country aims to become an industrialised, knowledge-based and upper-middle-income economy, with annual economic output of about $1 trillion and per capita income of $7,000 by 2050.

In line with those ambitions, the South Korean-backed project will finance classrooms, laboratories and a wider campus for advanced technology training.