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UAE and Kenya Forge Digital Investment Partnership

TL;DR

  • UAE and Kenya signed a pact to boost digital development, focusing on data centers and AI projects.
  • Kenya’s digital economy is booming, with the ICT sector leading the charge.
  • The partnership aims to bridge the digital gap in Africa, enhance trade, and empower nations through technical assistance programs.

The UAE Ministry of Investment and the Republic of Kenya’s Ministry of Affairs, Information and Communications have contracted a major Investment Memorandum to enhance bilateral business ties and build digital infrastructures. The treaty envisions cooperation in that field to assist in confirming intended initiatives for both countries’ digitalization and technology development.

A strategic plan is even outlined for the Memorandum of investment in different digital sectors, with the notable focus of investments being on the digital infrastructure and artificial intelligence services in Kenya. Within the proposed interventions, the partnership is set to study the viability of simultaneously operationalizing up to 1000 MW data center projects. Besides, there will be a mark to utilize the LLMs in the AI paradigm since they have some technical and investment opportunities.

Kenya’s digital economy surge

The country experienced extraordinary digital economy growth in Kenya, which was mainly driven by the ICT sector. It has produced an annual growth of 23 percent over the last decade – a figure worth highlighting. 

As the biggest economy in East Africa, investors recognized Kenya as the most lucrative data center-providing destination because the increasing demand for cloud services comes the high need for proper data centers. 

The business environment will become easier, new market entrants will start to emerge, and there will be mass adoption of digital solutions in different sectors to ensure such a trend continues.

A “digital corridor” is the basis of the entire Investment Memorandum – an integrated network that helps with protected data exchange, processing, hosting, and transmission between the UAE and Kenya.

In terms of the alliance, Mr. Mohamed Hassan Alsuwaidi, UAE’s Minister of Investment, was certain that there would be a lot of excellent opportunities to emerge within all the economic sectors of UAE and my country. Options such as direct investment in digital infrastructure and AI would spur economic expansion and improve innovation, with a vision of a new digital era in which AI plays the main adaptive role.

Similarly, Eliud Owalo at the Ministry of ICT, Innovation, and the Digital Economy in Kenya captured Alsuwaidi’s message by applauding the program’s ability to bridge the digital divide in Africa and propel technological innovation. He emphasized the joint actions as a way of producing the basis for a virtual environment that would be more like society and interconnected globally.

Milestone Comprehensive Economic Partnership Agreement (CEPA)

The investment Memorandum signed is only a step following the conclusion of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Kenya, representing a great achievement in scaling the trade volumes and business between the two states. The CEPA, the pioneer in cooperation in this area between the two nations, is designed to encourage greater investment cooperation and expand the non-oil trade, which reached $3.1 billion in 2023 compared to the previous year, where it was the highest at no time before.

Furthermore, Kenya recently accessed the UAE Trade for Development Platform, a technical assistance program mainly targeting policymakers and fund officials from developing countries. Our platform empowers participants with the required tools and know-how to help them address the challenges of international trade talks. Therefore, the platform entails their integration into the global economy and justice for all to promote sustainable development.

Nations fundamental to global trade need to be empowered

Mr. Thani Bin Ahmed Al Zeyoudi — Minister of State for Foreign Trade in the UAE — affirmed the country’s stance on inclusive and sustainable trade harnessed by efforts such as the Trade for Development Platform. He stressed that refined methodology and guidance, as well as professional help, is an inalienable component in the way towards the participation of the global economy among the states, thus advancing their citizens’ living standards.

The partnership between the UAE and Kenya represents a critical point in how technology and digitalization are being exploited to stimulate development and start a worldwide level of cooperation. While both countries work out their revolutionary strategies, they can dip into new chances and build up their competitiveness as the most sophisticated digital economies in the future.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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