Biden Moves to Secure Chips Act Funding for Kenya

(Bloomberg) -- The US is proposing to make Kenya the first country in Africa to benefit from funding in the Chips and Science Act, according to White House officials, underscoring the countries’ desire to cement tech industry relationships.

President Joe Biden’s administration intends to work with Congress to commit $1 million in assistance for Kenya to support assembly, testing and packaging in the semiconductor sector, according to a fact sheet. The $280 billion landmark law is aimed at bolstering domestic chipmaking through billions in subsidies and incentives.

Biden welcomed Kenyan President William Ruto and prominent executives to the White House on Wednesday, and said the US and Kenya were “launching a new era of technological cooperation” that would touch on areas including cybersecurity, artificial intelligence, clean energy and chips.

“We need you to help us strengthen the supply chains and the industries of the future,” Biden added.

Commerce Secretary Gina Raimondo discussed the new semiconductor partnership with Kenya during the roundtable, according to an official, who detailed the moves on condition of anonymity before its release. 

The partnership, under the International Technology Security and Innovation Fund, seeks to strengthen the security of global supply chains and complement US manufacturing of chips.

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The executives attending the meeting included Ruth Porat, president and chief financial officer of Alphabet Inc., and Ursula Burns, chairwoman of Teneo. Executives of Kenyan companies, including Sitoyo Lopokoiyit of M-PESA, Anthony Githinji of Semiconductor Technologies Limited and Jit Bhattacharya of BasiGo, made up the majority of participants.

The discussion falls at a time of heightened global collaboration on safeguards for emerging technology, specifically regarding artificial intelligence which experts say poses a threat to privacy and heightens the risk of disinformation. 

The visit from Ruto, who will be honored with a state dinner on Thursday, highlights the Biden administration’s efforts to counter Chinese and Russian influence in the region and reverse years of what African leaders say is US neglect.

“Our young population — talented, educated, innovative — and American technology that is cutting-edge and investment capital and investors that are hungry for opportunities, not just in Kenya, but in our continent, is a perfect match for this moment,” Ruto said.

AI is one emerging technology that has captured Biden’s attention as he seeks to implement privacy and security safeguards in the absence of US Congressional action. 

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Others who attended included Franklin Amoo, co-founder of private equity firm Baylis Emerging Markets; Kamau Gachigi, executive director of Gearbox; Peter Muchiri, vice chancellor of Dedan Kimathi University of Technology in Kenya; Cheryl Mills, chief executive officer of BlackIvy Group; and M-KOPA CEO Jesse Moore.

Before arriving in Washington, Ruto spent Monday and Tuesday in Atlanta. He visited the Coca-Cola Company’s headquarters, and attended a reception with private-sector leaders late Tuesday, according to two administration officials. 

Several companies based in Atlanta have a strong presence in Africa, including Coca-Cola and Delta Air Lines, Inc. Ruto toured the Tyler Perry Studios, owned by the entertainment mogul, and where television personality Steve Harvey and former National Basketball Association star Shaquille O’Neal stopped by.

Ruto also spoke at the Jimmy Carter Presidential Library and Museum in Atlanta, underscoring the visit’s theme of democracy as the US encourages African nations to conduct fair elections. He laid a wreath at the tomb of civil-rights icon Martin Luther King Jr. and his wife, Coretta Scott King, while visiting a center dedicated to honoring their legacy.

On Tuesday, the US Agency for International Development announced a $32 million investment to promote science, technology, engineering and mathematics education in Kenya during Ruto’s visit to Spelman College, a historically Black college for women.