April 24, 2024

UAE and Kenya sign investment memorandum to develop mining and technology sectors

UAE and Kenya sign investment memorandum to develop mining and technology sectors
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  • ADQ announces finance and investment agreement  with Kenya worth up to US$ 500 million

The Ministry of Investment of the UAE and the Ministry of Finance and National Treasury of the Republic of Kenya have signed an investment memorandum, 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.

His Excellency 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.”