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Unlocking Growth: Benefits of Liberalized CRS to Kenya

Learn about how liberalized CRS has benefited Kenya, promoting job creation, FDI, technology transfer, and access to latest technologies, maintaining market competitiveness, and opening cross-border opportunities for Kenyan professionals.

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Unlocking Growth: Benefits of Liberalized CRS to Kenya

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  1. Benefits of Liberalized CRS to Kenya Waudo Siganga The Computer Society of Kenya CRS Seminar, Geneva September 28 2005

  2. Agenda • Kenya the country • Computer Society of Kenya • General ICT Environment • Benefits of liberalized CRS • Conclusion • Q&A CRS Seminar, Geneva September 28 2005

  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 CRS Seminar, Geneva September 28 2005

  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 CRS Seminar, Geneva September 28 2005

  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 CRS Seminar, Geneva September 28 2005

  6. Pillars for ICT-led Growth • Competition • Private Sector Investment • Predictive yet responsive legislative/regulatory environment • Universal access CRS Seminar, Geneva September 28 2005

  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 CRS Seminar, Geneva September 28 2005

  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 CRS Seminar, Geneva September 28 2005

  9. 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 CRS Seminar, Geneva September 28 2005

  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 CRS Seminar, Geneva September 28 2005

  11. 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 CRS Seminar, Geneva September 28 2005

  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. CRS Seminar, Geneva September 28 2005

  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. CRS Seminar, Geneva September 28 2005

  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. CRS Seminar, Geneva September 28 2005

  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. CRS Seminar, Geneva September 28 2005

  16. 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. CRS Seminar, Geneva September 28 2005

  17. The End • Thank you for your attention I can be reached at: Waudo @signet.co.ke CRS Seminar, Geneva September 28 2005

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