UAE has decided to invest in Kenya, specifically in its technology and mining sectors. This news came on 25 April 2024. This investment pact was signed by UAE’s Ministry of Investment and Kenya’s Ministry of Finance and National Treasury.
This investment deal between these nations has only one aim – to improve Kenya’s technology and mining sectors. Therefore, this investment will focus on introducing new technology to enhance mining in Kenya.
However, how precisely will it affect the Kenyan mining and technology industry? Moreover, why is the UAE investing in Kenya? What’s their real purpose behind such $500 million investments?
Read this post to find out more!
Kenya’s Mining Industry At A Glance
Before we dig deeper into UAE’s investment in Kenya, let’s first look at Kenya’s mining industry.
Kenya’s mining industry is seeing stunted growth due to a lack of modern technology that can enhance all their mining operations. However, Kenya has an abundance of minerals and resources like copper, gold, tantalum, and ilmenite. Moreover, the country also has an abundance of non-metallic minerals as well.
However, many experts claim the UAE’s decision to invest in Kenya was due to various recent developments. Moreover, the Kenyan mining industry saw some significant developments this year:
Discovery Of Coltan
Coltan is one of the rarest metallic ores on this planet. However, in January this year, discovering a large chunk of Coltan ores in Kenya’s Embu County has become the source of a lot of attraction.
Moreover, Coltan is a valuable metal that most manufacturing companies use to produce various devices. For example, Coltan primarily produces smartphones, computers, and gaming consoles.
Therefore, many countries may invest in Kenya’s Coltan mining operations to curb China’s and Taiwan’s growing semiconductor production dominance.
Marula Mining
Kenya’s mining trade was significantly boosted when South Africa’s Marula Mining company sent a representative to Kenya. They aimed to get a dealer’s license in Kenya to trade minerals and metals there.
Therefore, Kenya saw a significant boost since the country can now import Manganese ores from Marula Mining at cheaper costs than other nations. This significantly increased Kenya’s reserve of Manganese ores.
Moreover, Marula Mining is currently working on setting up new trade agreements to invest in Kenya’s Larisoro Manganese Mines. Therefore, this South African company focuses on expanding its mining operations in Kenya and becoming a key player.
Illo Mining Town
In the semi-arid savanna region of Dabel in Northern Kenya, the government created a new makeshift mining town called Illo. This town is near the Kenya-Ethiopia border. However, this town was the primary hub in the country regarding the sale of illegal gold and chromite.
Therefore, the government recently cracked down on this town to curb the illegal gold trade. They are now actively creating a new framework to get such illegal trade under their control. This will boost the country’s economy since regulating Illo’s extensive illicit trade minerals will make them legal – and taxable.
Kenya’s Technology Industry At A Glance
UAE wants to invest in Kenya’s mining industry and has set its eyes on the country’s technology sector.
Again, most analysts claim that was also due to various Kenyan technological developments this year. Therefore, some of the most significant developments in Kenya’s technology sector this year are:
Streamlining Processes Using AI
UAE is focusing on developing new technology that leverages AI for operational improvement. This is more obvious because of Microsoft’s investment of $1.5 billion in UAE’s G42 AI firm, which took place recently.
However, most countries are now investing more in AI. This is because AI has many applications besides its mainstream use as an AI chatbot (like ChatGPT). Kenya plans to focus more on using AI and IoT (Internet of Things) to enhance and streamline various industrial processes.
Therefore, Kenya will start to integrate AI into the healthcare sector. They will use AI to provide patients with quicker and more accurate AI diagnostics. Moreover, AI will extend to provide patients with the best medicine prescriptions and better personalization.
In addition, Kenyan healthcare will also connect healthcare access to patients using AI through remote medical consultations and diagnosis. This will be done primarily in Kenyan regions with fewer healthcare facilities.
Moreover, AI will also appear in Kenya’s agriculture sector. Newer precision farming techniques leveraging AI will soon appear on Kenyan farms.
In addition, smart sensor drones will also use AI and various machine learning algorithms to analyze data regarding soil health, crop conditions, and weather patterns. This will collectively optimize farming, yielding better produce and reducing agricultural waste.
New Cybersecurity Investments
Kenya must focus more on improving its cybersecurity since a group of hackers calling themselves “Anonymous Sudan” shook Kenya’s cyberspace. This was done using Denial of Service (DoS) attacks on Kenyan data centers.
Therefore, Kenya will now focus on developing new Cybersecurity training and awareness programs. The focus of this program is to train new cybersecurity specialists. Their job? Detect and protect cybersecurity breaches and attacks in real-time.
In addition, they will also receive training to automate the analysis of cybersecurity threats and generate self-healing systems using AI.
Better Data Protection Regulations
After the “Anonymous Sudan” attack, The Kenyan Data Commissioner Office will issue new data privacy regulations. Therefore, you can say that Kenya is becoming increasingly aware of its digital footprint.
This is why these new regulations will force the public and private sectors to invest in better data encryption and security processes. Moreover, they must improve their data storage solutions and keep their data management practices transparent to the Data Commissioner Office. Furthermore, this also applies to Kenya’s civil society organizations as well.
Developing Blockchain And Cryptocurrency Regulations
Most people believe investing in cryptocurrency and blockchain is the quickest way to get rich. However, most people globally and in Kenya don’t know much about cryptocurrency and blockchain. Most of these investments are primarily based on speculations rather than careful analysis.
Therefore, the Kenyan government will create a new Virtual Asset Bill to regulate investments in blockchain. This bill will streamline, regulate, secure, and enhance blockchain investments. Its primary focus will be to protect people from blockchain fraud and cryptocurrency laundering.
For example, Kenyan farmers will soon be able to secure small loans by sharing their harvest data, which they must store in blockchains.
G42 x EcoCloud For Green Data Centers
After Microsoft’s investment, Abu Dhabi’s AI firm G42 has the impetus to partner with Kenyan technology company EcoCloud to develop green data centers, primarily in Eastern Africa.
Geothermal energy (made using the heat in Earth’s crust) will power these green data centers. Moreover, the analysis suggests that geothermal energy generates around 100 megawatts.
However, Kenya’s primary electrical energy generator, KenGen, expects this to go up to one Gigawatt since geothermal plants have a maximum potential of ten Gigawatts.
UAE-Kenya Investments: What Does It Signify?
Now that you know why Kenya is a growing hub for mineral resources, workforce, and growing industries, it is no surprise that even the UAE has its eyes on this country – for all the good reasons. Kenya is one of the biggest economies in Africa, contributing to 40% of Africa’s GDP. Moreover, they have an economic growth of 4.5% to 5.5% in 2024 – a pretty nice number.
Therefore, the UAE is investing in Kenya to diversify its investment portfolio globally.
This pact was overseen by the Abu Dhabi Developmental Holding Company (ADQ), which is building the framework agreement. It’s necessary since these investments in Kenya’s priority sectors could go as high as $500 million.
This comes after UAE and Kenya’s oil trade increased by 26.4% last year to $3.1 billion, according to Kenya’s Minister of State for Foreign Trade, Dr. Thani Al Zeuyoudi.
This new agreement between Kenya and the UAE will also enhance Kenya’s mining operations. Therefore, Kenyan mines will see the introduction of modern AI and IoT-based technologies in their mining operations.
This is what Kenya’s Minister of Investment, Mohamad Alsuwaidi has to say:
“We are laying down the foundation for a future where sustainable mining practices, innovation, and responsible stewardship form the pillars of our mutual growth. Moreover, 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 the overall prosperity of our nations.”
Conclusion
UAE’s investment in Kenya’s mining industry will significantly improve Kenya’s mining operations. Moreover, this will boost the UAE’s acquisition of precious metals and resources from Kenya.
This is necessary since the discovery of Coltan in Kenyan soil can help the UAE produce higher quantities of mechanical parts and advance its technology further.
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