PRESSR: UAE and Kenya sign Investment Memorandum to advance digital infrastructure and AI initiatives
First published: 29-Mar-2024 11:07:20
Abu Dhabi, UAE – The Ministry of Investment of the UAE and the Ministry of Information, Communications and the Digital Economy of the Republic of Kenya have signed an Investment Memorandum establishing a framework for investment cooperation in the field of digitalization and technology.
In addition to exploring investments in digital infrastructure and artificial intelligence (AI) services in Kenya, the cooperation may include the development of data centre projects with a total capacity of up to 1,000 megawatts. In the field of AI, the technical and investment potential of developing Large Language Models will be assessed.
The Investment Memorandum was signed by His Excellency Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, and His Excellency Eliud Owalo, Cabinet Secretary at the Ministry of Information, Communications and the Digital Economy in Kenya.
Kenya has witnessed significant growth in its digital economy, primarily driven by the ICT sector, which has outperformed all other sectors, expanding by 23 percent annually during the last decade. As the largest economy in East Africa, Kenya is also becoming a preferred investment destination for data centre providers, with the growing demand for cloud services prompted by improved business conditions and new market entrants, as well as the migration of many businesses to digital solutions. There are currently several operational data centres in the country, and the local data centre market is expected to witness a compound annual growth rate of 11.22 percent between 2023 and 2028.
The Memorandum focuses on facilitating strong and effective relationships between public and private sector organisations in the two countries to enable cooperation in digital infrastructure projects. It additionally proposes the implementation of incentives to support pertinent initiatives.
The “digital corridor” concept is integral to this Memorandum, representing an interconnected network infrastructure enabling secure data exchange, hosting, processing, and transmission between the UAE and Kenya.
His Excellency Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, said: “A closer partnership between our two nations harbours remarkable opportunities in numerous fields that can contribute to the continued strengthening and advancement of our economies. Through targeted investments in digital infrastructure and artificial intelligence, this Investment Memorandum is set to accelerate the development of a sector that has the potential to become a growth driver for other industries, setting out a vision for the future defined by prosperity and progress.”
His Excellency Eliud Owalo, said: “Collaboration between Kenya and the UAE goes beyond strategy; it is poised to strengthen the bonds between our two nations. With the potential to bridge the digital divide in Africa, expedite technological innovation, and foster a sustainable future for the ICT industry, this partnership will pave the way for a more inclusive and interconnected digital world.”
The Memorandum was signed on the heels of the UAE and Kenya finalising a Comprehensive Economic Partnership Agreement (CEPA), marking a milestone as the first CEPA between the two countries, deepening investment ties and boosting bilateral non-oil trade, which reached USD 3.1 billion in 2023, up 26.4 percent on 2022.
About the Ministry of Investment of the UAE
Established in July 2023, the Ministry of Investment aims to accelerate foreign direct investment into the country and further strengthen the UAE’s position as a globally leading investor.
About the Ministry of Information, Communications and The Digital Economy of the Republic of Kenya.
The mandate of the Ministry as derived from Presidential Executive Order No.1/2023 and the subsequent Executive Order No. 2 of 2023 comprises the formulation of policies and laws that regulate standards and services in the Information, Communication and Technology (ICT) sector, Telecommunications and the Media industry. It is also charged with the responsibility of developing and administering ICT standards, building capacity of mass media and ICT, and the dissemination of public information through the Kenya Broadcasting Corporation (KBC).
Send us your press releases to pressrelease.zawya@lseg.com© Press Release 2024
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.