Kenyan Entrepreneurs: It’s All About The “Internets”
I was perusing the BD Africa Technology section and they’re a whole bunch of companies that are trying to strategically place themselves in the right place in order to take advantage of this high speed cable line that is supposedly coming.
Now, I know a lot of Kenyans are still hung up on “old” industries like real estate and farming, but it’s been increasingly clear for years now, that global economic growth is being fueled by advances in technology and when you talk about technology, you are basically talking about the internet and operating systems that are allowing people to streamline their business operations and to conduct business across world borders, at all times of the day and all of these advances are leading to greater efficiency and greater productivity for people who embracing this new and innovative technology.
So, as I was reading the half articles (I refuse to pay for online content) from BD Africa, all these various company names popped up and they’re all angling to get in on the action once that line arrives. A sampling list of the company names includes the following:
Okay. Now, I want us (or someone here) to either answer the following questions or provide any background information on this growing industry (if you have it).
These are a few of the general questions I could come up with by myself, but feel free to add more commentary on this topic, which you deem might be relevant.
A friend of mine works for an insurance company in Kenya and from talking to her, I realized that a lot of companies in Kenya are really trying to upgrade their technology (particularly companies that tend to keep a lot of records {like insurance companies}) – they’re trying to go paperless. Is this an area that has potential in Kenya if you can develop the software?
No talking about land and rental properties in this post (please!). That’s old Europe. I want new Europe.
This are few problems facing outsourcing…am facing them
1) Electricity….Todays costs are a pure ripoff….am sure Indai or philipines would be laughing if we were to compete
2) Cost of labour…Due to energy cost HR in Kenya would need more money to give meaningful input
3) Office cost : Due to Unitary nature of Kenya politics everything is centred in NRB….Cost of offices/housing for staff is astronomical..We cannot compete with fedreated countries were wealth is distributed over regions decimating cost of Housing
4th …Jams…yes jams..NRB is a nightmare due to KENYA itself
Another serious problem facing Kenyans is cost of expert IT staff…..
There are few and very costly…Unlike Indai,Philphines were cost is percentage of ours 1/100 literally
The only people feeding excitement about the impending cable is the BIG companies who rely on the GOV as a major customer…..They are not thinking of Taking ON India or such other countries:
Look KE…The best way to make money in Kenya is to have Corporate clients and here corporate clients means goverment……The multinationals already have ICT backbones of their own
Lord, KE
I agree with the issue of energy. Kenya seriously needs to sort out the energy situation. They either have to open coal stations, go nuclear or import on a massive scale.
The other possible solution would be for the governments in the region to fund a hydro project in the Congo River. I had heard that there was a consortium of western companies considering this option solely for the European market!
I agree that there is also an issue with the market base. It is restricted to corporations, government and the elites. Why is it not possible to expand the IT market base to include ordinary Kenyans in the informal sectors, agriculture, schools, matatu men, fishermen etc.?
I am surprised that even big schools (and colleges) such as Alliance and Mangu do not have websites.
I believe there is a big opportunity for the Kenyan Entrepreneur who will penetrate the mass market. Maybe this is the key to a true technological revolution. Right now, even with the fibre optic cable, we shall still be scratching on the surface.
Perhaps we should start by decreeing that every primary school and secondary school must have a fully equipped IT hub.
ISP sector is very competitive and the most lucrative and will even be more so next yr. But the untapped market is huge. AK said that it thought the residential market was fin region 350-400k households i.e. imagine every household that owns color TV and several moviles would want internet at some pt.
Outsourcing-the growth will be affected by the power costs but will be a growth area given much cheaper costs.
How about IT training colleges and research.
Content provision i.e. designing websites and so forth…
KE,
You in the process of creating a business plan and want free info, or what?
Haven’t we been here before?
Me thinks that the government is lax on the issue of IT development. I still don’t think the government has grasped the potential of this sector to create employment and opportunity.
My two cents therefore is that the government of Kenya should go to war on IT development. It should send teams to Singapore, Malaysia, India and South Korea to pick up tricks on policy initiatives that have transformed their economies with regards to the IT sector.
This is exactly what the ministers should be doing instead of yapping about 2012.
Kenyans should seriously up their game.
Sorry to digress from the topic but here is a woman after my own heart. She is a true Kenyan investor. A genuine Kenyan dollar millionaire. Well done Mabel Muruli!
http://www.kaamasaa.com/newsstory.php?id=992
Does anyone know why the electricity costs in Kenya have skyrocketted to over 51%? That’ll just kill businesses especially manufacturing one’s. Then of course, ordinary consumers seeing their bills double almost overnight.
Why hasn’t kenya invested in solar energy?
KE
Seems like some wise politicians in kenya have been reading your blog. Anyway I think in two year’s time KENYA’S info & tech. will change forever.The plans the government has if achievable will put us at par with India in BPO services.Please visit http://www.ICTPARK.com will be amazed.
KE,
About Elec skyrocketing, I understand that KENGEN has declared that unless the gava gives it subsidies, then it will revert to charging them market rate for elec.
They say their first duty is o toward theur shareholders, thus they have to maximize profit. I guess it’s just capitalism