UAE, Kenya join hands to boost digital cooperation

In a significant move to drive technological advancement and digital cooperation, the Ministry of Investment of the UAE and the Ministry of Information, Communications and the Digital Economy of the Republic of Kenya have inked an investment MoU.

This agreement lays down a comprehensive framework for collaboration in digitalisation and technology.

It will enable the countries to explore and tap opportunities in digital infrastructure and artificial intelligence (AI) services in Kenya.

The cooperation also extends to developing data centre projects, with a combined capacity of up to 1,000 megawatts.

Additionally, the potential for advancing large language models in AI will be evaluated.

Kenya ICT sector on the rise

The country’s ICT sector has seen a remarkable annual expansion of 23 per cent in the last decade, with ICT outperforming other industries.

As the largest economy in East Africa, Kenya has become increasingly attractive to data centre providers, driven by growing demand for cloud services, improved business conditions, and the migration of businesses towards digital solutions.

The local data centre market is set for robust growth, projected to achieve a compound annual growth rate of 11.22 per cent between 2023 and 2028.

Read: Abu Dhabi’s G42, EcoCloud partner to build green data centre in Kenya

UAE and Kenya look at digital corridor to exchange data

Central to the agreement is the concept of a “digital corridor”. This interconnected network infrastructure will enable secure data exchange, hosting, processing, and transmission between the UAE and Kenya.

This strategic initiative aims to foster strong collaborations between public and private sector entities in both countries, with a focus on supporting digital infrastructure projects and incentivising relevant initiatives.

Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, emphasised the vast potential inherent in the partnership between the two nations. He articulated that targeted investments in digital infrastructure and AI can catalyse economic growth and innovation.

Eliud Owalo, Cabinet Secretary at the Ministry of Information, Communications and the Digital Economy in Kenya, highlighted the broader implications of the collaboration. “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,” he said.

UAE-Kenya CEPA to further drive trade and cooperation

The signing of the investment MoU comes on the heels of the UAE and Kenya finalising a Comprehensive Economic Partnership Agreement (CEPA) in February.

This agreement is poised to deepen investment ties and bolster bilateral non-oil trade, which surged to  $3.1bn in 2023, marking a growth of 26.4 per cent compared to 2022.

In related news, Abu Dhabi-based holding company ADQ will establish a finance and investment framework with the National Treasury and Economic Planning Ministry of the Republic of Kenya to explore intended investments of up to $500m in priority sectors of the East African country’s highly diversified economy.