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Home RUTO STATE VISIT

Google to open new Kenya office as M-KOPA secures KES 6.8 billion smartphone financing deal

Brian Murimi by Brian Murimi
May 23, 2024
in RUTO STATE VISIT
Reading Time: 2 mins read

Google has unveiled plans to inaugurate a new office in Kenya, marking its first Product Development Center on the continent. This announcement comes hand in hand with an investment initiative dubbed Africa Connect, spearheaded by the tech giant, aimed at erecting the first intercontinental fiber optic route in the southern hemisphere, linking Kenya to the Asia Pacific region.

The expansion entails not only the establishment of Google’s foothold in Kenya but also the facilitation of enhanced digital infrastructure across the region.

Speaking on this endeavor, a communication from the White House highlighted the broader significance of such initiatives in bridging the digital divide. “Google’s investment in digital connectivity for Africa Connect represents a pivotal step towards fostering economic growth and innovation in the region,” the statement read.

Furthermore, the communication outlined several other key developments in the realm of digital connectivity across East Africa. The U.S. Trade and Development Agency (USTDA) recently announced substantial funding allocations aimed at bolstering broadband network access and internet affordability in the region.

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Notable among these initiatives is a $1.13 million feasibility study to aid Bandwidth and Cloud Services Group (BCS) in expanding its operations, thereby providing affordable broadband network access to a significant portion of the population.

Additionally, M-KOPA, a Kenyan company specializing in mobile technology solutions, has secured a significant boost in funding. The U.S. International Development Finance Corporation (DFC) has extended a $51 million loan to M-KOPA, aimed at supporting the financing of smartphone receivables and cash loans totaling up to $210 million.

This move is expected to significantly increase accessibility to digital devices for low-income borrowers, thereby furthering the cause of digital inclusion in the region.

Moreover, the communication highlighted initiatives aimed at fostering digital skills and literacy among young Africans. The Digital Transformation with Africa (DTA) Partnership, in collaboration with the Young African Leaders Initiative (YALI), intends to provide $1 million to YALI’s Regional Leadership Center (RLC) in Kenya. This funding aims to expand digital skills, support digital entrepreneurs and startups, and increase private sector engagement across East Africa.

The White House communication also shed light on collaborative efforts between the U.S. and Kenya in the realm of Artificial Intelligence (AI). A Strategic Dialogue on AI has been established to facilitate discussions aimed at ensuring the safe and secure deployment of AI systems. This initiative underscores the growing importance of technological cooperation in addressing critical global challenges.

Moreover, plans for collaboration between the U.S. AI Safety Institute and Kenya’s Imagine Tech and Action Lab have been unveiled, with a focus on advancing scientific research for AI safety and promoting interoperable standards.

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Brian Murimi

Brian Murimi

Brian Murimi is a journalist with major interests in covering tech, corporates, startups and business news. When he's not writing, you can find him gaming, watching football or sipping a nice cup of tea. Send tips via bireri@thesharpdaily.com

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