Abu Dhabi state-controlled fund ADQ has set up a finance and investment framework with the National Treasury and Economic Planning Ministry of Kenya to explore investments of up to $500 million in priority sectors of the East African country's 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% in 2024.

Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ, said: "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.”

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. In 2023, non-oil trade between the UAE and Kenya rose by 26.4% year-on-year to $3.1 billion.

Last month, Kenya signed an MoU with the UAE to develop the first-ever data centre powered by geo-thermal energy. Based on the deal, Kenya’s EcoCloud and UAE’s G42 will construct a 1GW mega data centre.

As part of increasing its external funding sources, the East African country, is planning to debut a $500 million sustainability-linked bond (SLB).

The bond, which will be the first in Africa, will have pre-determined sustainability performance goals. It is expected to be issued by November and the proceeds of the SLB will be used for general budget support, according to the World Bank.  

(Writing by Seban Scaria seban.scaria@lseg.com)