AI & African Enterprises: July 2024 Newsletter
Newsletter originally published July 28, 2024
🔍 A Closer Look at Kenya’s US AI Deal
We're taking a closer look at the AI gains Kenya secured as part of the Biden-Harris' administration's response to Kenya's willingness to lead the US-backed Multinational Security Support mission to Haiti, where Kenya deployed 1000 police officers.
President Rutto's May state visit, organized by the Biden-Harris administration, resulted in the announcement of a raft of initiatives in Kenya's favour, spanning human rights & government, trade & investment, health, and security cooperation; with Kenya designated the first Sub-Saharan African country named as a Major Non-Nato Ally. A substantial portion of the initiatives contribute to the advancement of AI in Kenya.
Tangible AI Initiatives
Offer clear value in advancing Kenya's AI infrastructure and economy
- $100M investment in a green data centre for AI services in Kenya, led by UAE-based G42, with Microsoft serving as a strategic partner, and G42/Microsoft developing a Kiswahili LLM
- US and Kenyan governments establishing a strategic dialogue on AI to coordinate policies on national security implications of AI
- US and Kenyan governments to cooperate on developing AI safety research and standards
Intangible AI Initiatives
Value to Kenya's economy may be realized over a longer timeline
- 3 programs to upskill Kenyans with AI training, and 4 programs to enhance relationships between Kenyan and US academic institutions to facilitate AI research
- $1.3M investment to support legacy semiconductor fabrication in Kenya
- Microsoft and the Kenya to invest in expanding last-mile internet connectivity
The political landscape in Kenya and the States have, each experienced dramatic shifts since the May state visit. Riots in protest to economic reforms proposed by President Rutto led to a cabinet overhaul. Concerns around President Biden's health led to a historic decision to decline to pursue a second term, with Vice President Kamala Harris becoming the de factor Democratic Presidential nominee.
Takeaways
The $1.3M investment in semiconductor fabrication in Kenya is marginal in comparison to the $165b value of Taiwan's world-leading semiconductor industry with support from the US government. The limitation to legacy chip fabrication may lead to marginal AI benefits since advanced AI compute requires start-of-the-art chip design (currently a source of geopolitical tension between the US and China).
Considering the volatility of the political landscape, upcoming US elections and ongoing riots in Kenya, the future of these initiatives remains unclear, but the wins Kenya scored serve as a potential template for African countries looking to secure foreign backing for domestic AI initiatives.