The recent G20 Summit in South Africa made headlines for several reasons. It was the first time the G20 convened on African soil, a symbolic milestone for the continent. The meeting was also notable for the absence of the United States, after President Donald Trump opted to skip the summit amid diplomatic tensions between Washington and Pretoria.
Yet for many African countries, the most consequential outcome of the summit lay elsewhere: the announcement of a $1 billion Artificial Intelligence (AI) for Development Initiative by the United Arab Emirates. Unveiled by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, the fund underscores the UAE’s growing commitment to sustainable growth through international partnerships and innovative financing for emerging economies.
Kenya is particularly well positioned to benefit from this initiative, largely because of its dynamic and resilient technology ecosystem. Unlike economies driven by mineral wealth, Kenya’s growth story has been powered by human capital, innovation and adaptability. Over the years, the education system has evolved to accommodate new ways of thinking as the number of digital natives continues to rise.
Mobile money has become deeply embedded in everyday life, transforming how Kenyans transact, save and do business. Indeed, it is now difficult to imagine economic activity divorced from technological innovation. At the same time, high unemployment levels–especially among young people–have inadvertently created fertile ground for new digital business models built on Kenya’s expanding technological infrastructure.
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The timing of the UAE’s AI fund could hardly be better. Earlier this year, Kenya launched its National Artificial Intelligence Strategy 2025-2030, anchored on three pillars: infrastructure, data, and research and innovation. With adequate financing, the country could make significant strides in building state-of-the-art data centres, while addressing the heavy energy demands required to power AI-driven systems.
Equally important will be investments in affordable, high-speed internet connectivity, as well as large-scale skilling and capacity-building programmes to ensure AI adoption delivers broad-based national impact rather than deepening inequality.
Unsurprisingly, fears persist that artificial intelligence will replace human jobs. While it is true that roles involving repetitive tasks are most vulnerable to automation, history suggests that technological disruption also creates new opportunities. AI is widely expected to unleash a powerful wave of innovation–minting new entrepreneurs, enhancing productivity, and opening up possibilities that were previously unimaginable.
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In Kenya, one of the most persistent barriers to growth has been information asymmetry, particularly for small and medium-sized enterprises. AI has the potential to dramatically reduce search costs, improve access to market intelligence, and level the playing field between established firms and new entrants. The result would be a more competitive and inclusive marketplace.
AI’s influence is also likely to permeate every factor of production. Consider a farmer who has cultivated the same crop year after year. With AI-driven insights, that farmer could instantly access data on which crop combinations are most profitable based on real-time market trends, weather patterns and input costs. A college graduate, meanwhile, could use AI tools to identify emerging career paths and skills in demand. Entrepreneurs could easily compare loan terms across banks, identifying the lowest interest rates and best customer service.
Taken together, these efficiencies could translate into higher productivity, faster growth and expanded opportunity across the economy.
If deployed strategically, the UAE’s $1 billion AI initiative–aligned with Kenya’s national AI strategy–could serve as a powerful catalyst for economic transformation. The challenge now lies in ensuring the opportunity is seized with foresight, inclusivity and urgency.
Ken Gichinga is Chief Economist at Mentoria Economics.
