1. Benefits of Liberalized CRS to Kenya
Waudo Siganga
The Computer Society of Kenya
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2. CRS Seminar, Geneva September 28 2005
Agenda
Kenya the country
Computer Society of Kenya
General ICT Environment
Benefits of liberalized CRS
Conclusion
Q&A
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3. CRS Seminar, Geneva September 28 2005
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
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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
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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
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6. Pillars for ICT-led Growth
Competition
Private Sector Investment
Predictive yet responsive legislative/regulatory environment
Universal access
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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
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8. CRS Seminar, Geneva September 28 2005
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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9. CRS Seminar, Geneva September 28 2005
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
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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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12. 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.
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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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14. 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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15. 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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16. CRS Seminar, Geneva September 28 2005
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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17. CRS Seminar, Geneva September 28 2005
The End
Thank you for your attention
I can be reached at:
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CRS Seminar, Geneva September