Published on 25 Oct 2024

Korean tech devices could soon be made in Kenya

Korea Electronics Association to establish manufacturing support centre in Nairobi

The Korea Electronics Association (KEA) has inked a memorandum of understanding with Kenya to set up a US$1.4m electronics and information technology manufacturing support centre in the Konza Technopolis. Located 70 km from Nairobi, Konza is a smart city and technology hub currently under construction. The new centre aims to develop a skilled workforce and provide technical support, with the goal of attracting South Korean electronics and tech companies to begin manufacturing in Konza.

John Paul Okwiri, CEO of Konza, expressed optimism about the partnership, noting that KEA, which represents Korea’s electronics and IT industry, will help drive local production of tech-enabled devices. He emphasised the agreement's importance in fostering technology transfer, knowledge sharing, and skills development. The centre, which is expected to support over 100 companies, is projected to be completed within three years.

Several Korean companies are reportedly eyeing the new facility, including xVic, which specialises in portable golf aiming guides, and Atech Net, makers of holographic imaging devices. Other firms include Rollingseeds, an educational family games platform; Goonies, which manufactures smart edutainment devices; and Sonic Dutch Korea, known for its cold-brew coffee machines that utilise sound wave vibration technology. Konza offers a range of incentives to investors, including a low corporate tax rate of 10% for the first 10 years, exemptions on certain licences, and waivers for some local government fees and charges. Yet, it has been beset by delays.

Earlier this year, Korea Eximbank committed US$284.1m in financing for the development of Konza Digital Media City, a project aimed at positioning Kenya as a leader in Africa's creative and content industries. Korea has also funded part of the Kenya Advanced Institute of Science and Technology (KAIST), offering master's and doctoral programmes in mechanical, electrical, and ICT engineering at Konza. Moreover, Korean vaccine maker SK Bioscience is involved in a feasibility study for a potential Konza-based manufacturing facility. In addition, the Kenyan and Korean governments have launched several projects to accelerate the development of Konza, including an intelligent transport system and integrated control centre, fostering a vibrant startup ecosystem, creating smart logistics, and developing a Konza-Nairobi transport network.

Although South Korea has been somewhat late at recognising the economic potential of Africa trade has reached nearly US$20bn. In 2023, Korea promised US$6bn in financial aid package to Africa, which was to be used for the energy transition, agricultural innovation, and knowledge development by 2025. At the Korea-Africa Summit in Seoul earlier this year, Korea committed to increasing its official development assistance for Africa to US$10bn by 2030. Additionally, the nation pledged approximately US$14bn in export financing to support Korean companies' activities across the continent. Nearly 50 agreements were signed between Korean and African governments, state-run agencies, and private entities. At the summit, Korea made clear its interest in Africa’s green energy minerals, which the country needs for manufacturing electric vehicles and other renewable power technologies. 

 

References

Kenya, Korea governments launch four EIPP projects to accelerate development at Konza Technopolis’, Konza Technopolis Development Authority, 14 March 2023

'Konza smart university allocated Sh5.7 billion', Business Daily, 14 March 2023

Kenya signs a financing agreement with Republic of Korea for the development of a Digital Media City at Konza Technopolis’, Konza Technopolis, 03 June 2024

Joint Declaration 2024 Korea-Africa Summit’, 2024 Korea-Africa Summit, 05 June 2024

South Korea, African countries sign agreements on minerals, exports’, Reuters, 05 June 2024

First Korea-Africa Summit: another missed opportunity for Africa’, ISS, 14 June 2024

South Korean tech companies to set up operations in Kenya’, ITWeb, 16 October 2024

Kenya's vaccine manufacturing vision advances as delegates from SK Bioscience, AtkinsRealis and BioVax tour KEMSA’, Kenya BioVax Institute, 24 October 2024

LinkedIn’, KEA (Korea Electronics Association)’, Accessed 24 October 2024

Konza Technopolis special economic zone benefits as provided for by SEZA’, Konza Technopolis Development Authority, Accessed 24 October 2024

Instagram post’, Konza Technopolis Development Authority, October 2
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