The Ministry of Investment in the United Arab Emirates and the Ministry of Information, Communications, and Digital Economy in the Republic of Kenya have signed a memorandum of understanding to enhance bilateral investment cooperation in the areas of digital infrastructure, digital economy, and technology.
The investment memorandum aims to explore investment opportunities in digital infrastructure and artificial intelligence services in Kenya. It also includes collaboration in research and development in data centers with a capacity of up to 1,000 megawatts, as well as in artificial intelligence, where the technical and investment potentials will be evaluated to develop large-scale linguistic models.
An investment agreement was signed by H.E. Mohamed Hassan Alsuwaidi, Minister of Investment in the UAE, and H.E. Eliud Owalo, Secretary of the Cabinet for the Ministry of Information, Communications, and Digital Economy in Kenya.
Kenya has witnessed significant growth in its digital economy, thanks to the information and communications technology sector, which has outperformed other sectors. This sector expanded at a rate of 23% annually over the past decade. As one of the largest economies in East Africa, Kenya has become an attractive destination for data center providers due to the increasing demand for cloud computing services. Improved infrastructure and new entrants into the market transitioning to digital solutions are factors contributing to this development. There are currently numerous data centers in Kenya, and this market is expected to grow by 11.22% between 2023 and 2028.
The investment memorandum, laying the foundation for a new phase of strong and effective cooperation between government and private institutions in both countries in the digital projects realm, was welcomed. Incentives will be provided to support initiatives and investment projects in this context.
The concept of a “digital corridor” is an essential part of the investment agreement, as it constitutes an interconnected infrastructure that facilitates the secure exchange, storage, processing, and transfer of data between the UAE and Kenya.
In this regard, H.E. Mohamed Alsuwaidi stated, “The strong partnership between the UAE and Kenya represents unique investment opportunities in various sectors that enhance our economy and development. Through investments in digital infrastructure and artificial intelligence, we work together to boost the development of the infrastructure and digital economy sector, which can become a key driver of growth in many other industries. This demonstrates a clear vision for the future based on prosperity and progress.”
In a related context, Mr. Eliud Owalo stated that the cooperation between Kenya and the UAE has ambitions beyond the strategic dimension, emphasizing the importance of enhancing relations between the two countries, supporting the digital sector in Africa, and accelerating technological innovation. He pointed out that the signed memorandum will contribute to building a sustainable future for the information and communications technology industry, opening the way to a more integrated and connected digital world.
The signing of the investment memorandum follows the announcement of a comprehensive economic partnership between the UAE and Kenya, the first of its kind between the two countries, enhancing non-oil investment relations and trade, which rose to $3.1 billion in 2023, with a growth of 26.4% compared to 2022.
