Benefits of Liberalized CRS to Kenya

1
Benefits of Liberalized CRS to Kenya

• Waudo Siganga
• The Computer Society of Kenya

2
Agenda

• Kenya the country
• Computer Society of Kenya
• General ICT Environment
• Benefits of liberalized CRS
• Conclusion
• QA

3
Kenya the Country

• Size 580 thousand sq kms.
• Population 35 m
• GDP US 14b
• GDP Per Capita US 400
• Current A/C Balance US -777m
• Goods Services Exports
• Labour Force 11.8

4
Computer Society of Kenya

• Established 1986 and represents over 80 major ICT
  Related Companies
  
• Member WITSA/AFICTA
• Advocacy activities
• Fiscal Reform
• Liberalization
• National ICT Policy

5
General ICT Environment

• Fairly liberalized
• Mobile telephony 2 players
• Wire line telephony monopoly ended
• Liberalized data communications Internet
  backbone and gateway services VoIP
  
• Independent regulator and government ministry
• Computer duty free but taxes on other services
• CRS commitments not yet made

6
Pillars for ICT-led Growth

• Competition
• Private Sector Investment
• Predictive yet responsive legislative/regulatory
  environment
  
• Universal access

7
Benefits from CRS (CPC 84) Liberalization

• Job Creation
• Attracting FDI
• Technology Transfer Capacity Blg
• Access to the latest technologies
• Opportunities abroad
• Maintenance of a competitive edge

8
Job Creation

• Current unemployment is over 50
• Government has a target of 500,000 new jobs
  annually
  
• CRS is creating an environment for new types of
  technology centred work
  
• Work can be outsourced from developed countries
  (labour cost comparative advantage)
  
• Employees enjoy new forms of training

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Job creation Example

• Canadian Company has partnered with a Kenyan ISP
  Company, Skyweb Technologies, to set up a call
  centre in Nairobi, Kenya shifted from Canada.
  So far about 25 employed with outlook for 80.
• Employees received new skills and training
• Employees earn above average salaries

10
Attracting FDI

• Private sector investment is one of the pillars
  of ICT-led development. A liberalized environment
  encourages FDI
  
• Kenya has become the hub of CRS activity in the
  region hosting offices for SAP, Cisco, HP, IBM,
  Oracle

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Technology Transfer

• CRS Companies such as Cisco, SAP, HP and Oracle
  have been able to set up local training centres
  where their experts train local Kenyans
  
• Kenyans gain from the skills transfer and are
  able to train others

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Access to Latest Technology

• The latest technologies are available in Kenya
  because experts are able to easily com into the
  country for installation or training stints, as
  well as set up shop in partnership with Kenyan
  firms. Using the latest technology ensures that
  Kenya stays competitive in the global economic
  environment.

13
Access to Latest Technologies

• Tourism and hospitality industries have been able
  to stay competitive
  
• E.g. experts came from India and helped to
  install and train staff of the Kenya Wildlife
  Service on a new Smart Card system that has
  helped control and manage revenue from tourists
  visiting national parks.

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Maintaining Market Competitiveness

• All the major industries in the country are able
  to apply the latest information technologies in
  their operations and bring in experts to help
  install and train staff. One manufacturing
  company, Bidco Industries has been noted for its
  usage of technology that has seen it expand its
  operations in the region.

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Cross Border Opportunities for Kenyans

• Kenyan ICT professionals are now to be found in
  many countries particularly those in the region,
  such as Botswana, Tanzania, Rwanda and South
  Africa. It is estimated there are over 1000 ICT
  experts in those countries, remitting over US
  10m back to the country annually.

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Conclusion

• There is clear and conclusive evidence that the
  freeing of CRS markets has benefited Kenyans in a
  number of aspects. These benefits are however
  only a small indication of the potential. Kenya
  has a capacity to benefit much further from areas
  such as outsourcing.

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The End

• Thank you for your attention
• I can be reached at
• Waudo _at_signet.co.ke