The Memorandum of Understanding has set the stage for investment collaboration in mining and technology sectors between UAE and Kenya….reports Asian Lite News
The United Arab Emirates and Kenya have signed an investment memorandum of understanding, setting the stage for investment collaboration in mining and technology sectors.
Simultaneously, ADQ, the Abu Dhabi-based investment and holding company, announced a finance framework agreement with Kenya’s ministry, facilitating investments in priority sectors of the Kenyan economy, with a potential investment sum of up to US$500 million.
Kenya’s mining sector boasts significant growth potential owing to its abundant reserves of gold, copper, ilmenite, tantalum, and various non-metallic minerals.
The advancement of this industry can substantially strengthen Kenya’s economy by generating employment opportunities, improving livelihoods, and positioning the nation as a prominent mining participant in Africa.
Known as the “Silicon Savannah”, Kenya is also the dominant economy in East Africa, contributing to more than 40 percent of the region’s GDP.
The MoU focuses on mineral exploration, mine development, mineral processing, refining, and mineral marketing in Kenya. One of the key objectives is to explore opportunities for technology transfer in Kenya’s mineral sector, that would support innovation and growth.
The two countries will also assess avenues for collaboration in promoting responsible stewardship of the mineral sector, with a strong emphasis on environmental, social, and governance practices, in addition to exploring avenues for collaboration in research and development within the designated sectors.
Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, said: “This Memorandum of Understanding marks a new chapter in the shared economic journey of the UAE and Kenya. Through this partnership, we are laying down the foundation for a future where sustainable mining practices, innovation, and responsible stewardship form the pillars of our mutual growth.”
“We are committed to leveraging technology to enhance capacities and establish robust governance practices that will not only propel the mineral sector but also ensure overall prosperity of our nations.”
The MoU and agreement have been signed on the heels of a bilateral investment cooperation signed to advance Kenya’s digital infrastructure sector, which was signed last month.
Meanwhile, ADQ, an Abu Dhabi-based investment and holding company, agreed to 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 US$500 million in priority sectors of the East African country’s highly diversified economy.
The agreement aims to explore and leverage investment opportunities in Kenya to promote the growth and development of its national economy, which is the largest in the East Africa region and is projected to achieve growth between 5 and 6 percent in 2024.
Earlier this year, the two countries concluded a Comprehensive Economic Partnership Agreement (CEPA) that will enable the trading partners to capitalise on mutual opportunities in sectors including food production, mining, technology and logistics.
Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, said: “This agreement not only strengthens the robust economic ties between the UAE and Kenya but also underscores ADQ’s commitment to developing partnerships in key markets that complement our investment strategy, allowing other nations to benefit from the considerable and diverse expertise within our portfolio.”
“We are confident that our investment will bring forth notable opportunities that will unlock tangible value and contribute to the economic growth of Kenya and the broader East African region, harnessing its vast potential for development.”
Kenya is among East Africa’s most dynamic economies and was one of the first African countries with which the UAE initiated bilateral trade deal talks in 2022. In 2023, non-oil trade between the UAE and Kenya rose by 26.4 percent year-on-year to $3.1 billion.
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