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22/06/2024
Mining News

UAE and Kenya collaborate to boost investments in mining and technology sectors

The UAE and Kenya have formed a strategic partnership to bolster investments in the mining and technology sectors, signaling a move by the Emirates to diversify its global investment portfolio.

Under the agreement, Abu Dhabi-based firm ADQ has inked a finance framework deal with Kenya, aimed at facilitating investments in key sectors of the Kenyan economy. The UAE Ministry of Investment disclosed that this collaboration could potentially lead to investments of up to $500 million.

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As a key player in East Africa, Kenya contributes over 40 percent of the region’s GDP. Its economy experienced a growth spurt, with real GDP rising to an estimated 5 percent in 2023 from 4.8 percent in 2022. Projections indicate that the African economy is poised to achieve growth rates ranging from 4.5 percent to 5.2 percent in 2024.

Kenya’s mining sector presents significant growth opportunities, boasting abundant reserves of gold, copper, ilmenite, tantalum, and various non-metallic minerals. The agreement, inked between the UAE’s Ministry of Investment and Kenya’s Ministry of Finance and National Treasury, primarily focuses on mineral exploration, processing, marketing, and mine development. A key objective is to foster technology transfer in Kenya’s mineral sector, aiming to spur innovation and growth.

Mohamed Alsuwaidi, the Minister of Investment, hailed the agreement as a “new chapter” in the shared economic journey of the UAE and Kenya. He emphasized the commitment to building a future where sustainable mining practices, innovation, and responsible stewardship drive mutual growth.

The UAE and Kenya have witnessed a significant uptick in their non-oil trade, which surged by 26.4 percent year-on-year to $3.1 billion in 2023, according to Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade. These recent deals follow a bilateral investment cooperation agreement inked last month, aimed at advancing Kenya’s digital infrastructure. Moreover, in February, the UAE and Kenya concluded negotiations for a comprehensive economic partnership agreement, further solidifying their economic ties.

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