UAE and Kenya Forge Digitalization Investment Pact
Abu Dhabi, The Gulf Observer: The UAE Ministry of Investment and the Ministry of Information, Communications, and the Digital Economy of the Republic of Kenya have formalized an Investment Memorandum, establishing a framework for collaboration in digitalisation and technology investment endeavors.
Under this memorandum, the two nations will explore investments in digital infrastructure and artificial intelligence (AI) services within Kenya’s burgeoning digital economy landscape. Notably, the collaboration may extend to the development of data center projects, potentially reaching a total capacity of up to 1,000 megawatts. Additionally, the memorandum highlights the evaluation of the technical and investment potential in developing Large Language Models within the realm of AI.
The Investment Memorandum was signed by Mohamed Hassan Alsuwaidi, Minister of Investment, and Eliud Owalo, Cabinet Secretary at the Ministry of Information, Communications, and the Digital Economy in Kenya.
Kenya’s remarkable growth in the digital economy, particularly driven by its Information and Communication Technology (ICT) sector, has positioned it as an attractive investment destination. Over the past decade, the ICT sector has exhibited a remarkable annual expansion rate of 23 percent.
Recognizing Kenya’s status as the largest economy in East Africa and its increasing appeal for data center investments, the memorandum seeks to foster strong public-private sector collaborations to facilitate digital infrastructure projects. Moreover, it proposes the implementation of incentives to support relevant initiatives.
Central to the Memorandum is the concept of a “digital corridor,” envisaging an interconnected network infrastructure enabling secure data exchange, hosting, processing, and transmission between the UAE and Kenya.
Minister Alsuwaidi underscored the significant opportunities inherent in closer UAE-Kenya partnerships across various sectors, particularly in digital infrastructure and AI investments. He emphasized the memorandum’s potential to catalyze sectoral growth, envisioning a future marked by prosperity and progress.
Cabinet Secretary Owalo emphasized that the collaboration between Kenya and the UAE is poised to reinforce bilateral relations, bridge the digital divide in Africa, and expedite technological innovation, ultimately fostering a more inclusive and interconnected digital world.
This memorandum signing follows the recent finalization of a Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Kenya, signaling a milestone in deepening investment ties and bolstering bilateral non-oil trade, which reached US$3.1 billion in 2023—a significant increase of 26.4 percent over 2022.
