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Vækstmarkeder i Afrika – Eyes On Kenya
DANSKE ARK medlemsmøde / torsdag den 16. maj 2013
Elisabeth Manford, den danske ambassade i Nairobi
Three themes
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Africa
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Kenya +
Opportunities in Architecture
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The Ministry
in Africa
African Growth – 5 Trends and Key Cities
GDP
6 of the world’s 10 fastest growing economies of
the past decade are in Sub-Saharan Afric.
Population
Sub-Saharan Africa will grow from 900 million people
(2012) to 1.2 billion (2025) and 2 billion (2050).
Urbanization
40% of Africans currently live in urban areas. Nigeria
will see 140 m new urban entrants before 2050.
Demographics
Sub-Saharan Africa’s median is age 18.6, compared
to 32 for the BRIC countries (40 for Europe)
Finance
Expansion of financial services/products. Africa’s
financial services sector is 10% of total GDP.
Plus: ICT, regional integration (EAC, COMESA, SADC), access to
finance, technological leapfrogging, natural resources, etc.
Africa is almost as urbanized as China and has as
many cities of >1 million as Europe (52 v. 48)
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UN Population Division 2011, The Economist, McKinsey, How We Made It In Africa
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Eyes On Kenya
+
Opportunities in Architecture
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Kenya – Country Profile
Economic
•Population: 43m
•Largest and most diversfied economy in East Africa
•Transport hub for East Africa through Mombasa Port (Lamu
Port planned)
• Serves Uganda, Rwanda, Burundi, DR Congo, South
Sudan, Ethiopia, Northern Tanzania
•3rd largest destination for Foreign Direct Investment (FDI) in
Africa, after South Africa and Morocco.
•Kenya leads Africa in private equity firms’ investments.
•No. 1 in new infrastructure: Growth in number of projects
coming to Kenya was highest (77%), compared with Nigeria’s
29% and South Africa’s 57%.
Political
•Peaceful March 2013 elections and smooth post-election
transition.
•New constitution in 2010.
•The creation of 47 new counties in 2013.
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Demand for construction – Expansion and 2 new cities
“Nairobi will be 62% urbanized in 2030. What does
this mean in terms of market potential and demand?”
“Nairobi needs 500.000 houses per year and is
currently building 30.000 houses per year.”
– Vimal Shah
Director of Tatu City and
Chairman of the Kenya Private Sector Alliance
Konza City (renderings)
5.000 acres
10b$ project
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Konza City Project
The very first house on the land now
known as Nairobi was described as
“an elaborate affair of bricks,
with an iron roof.” It belonged to
Sir George Whitehouse, chief
engineer of the Uganda Railway.
– Andrew Hake: African Metropolis:
Nairobi's Self-Help City (1977)
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1900
2010
J R Baass, Charles Apple
The Trade Council in Kenya
1970
Assisting Danish companies to enter and expand in new markets.
Lowering your costs and mitigating the risks of operating abroad.
KWANI CITAT om Nairobi
2012
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Trevor Hornsby, Mutua Matheka
Where are the opportunities?
Corporates
•Large multinationals moving in (already present: IBM, Google,
Microsoft, Nokia, Hewlett Packard, Accenture, PwC, Samsung,
Huawei, etc.)
•… and large Kenyan companies expanding.
Gaps in the market for Danes?
• Enviromental design on the rise
• LEED standards become part of ToRs
• These requirements often align with
functional requirements (ex: makes
Hotels + Resorts
•Conferences (UNEP + UN, diplomatic missions, regional meetings,
multinationals)
•Tourism is the 3rd biggest foreign exchange earner behind tea
exports and remittances from diaspora.
sense to utilize solar in Kenya…)
• International projects more green:
World Bank, IFC, Tullow Oil HQ…
• Ultimately depends on 1)
developer/financer and 2) that end
Services
customers are willing to pay premium
•Hospitals
•Transport
for “green” buildings.
Mass Housing
•Economies of scale
•Prefab housing
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• Mechanical construction methods
• New materials: Fiberglass, stainless
steel, timber beams, prefab timber…
Roles and Strategies of “Outsider” Architects in Africa
Calabar International
Convention Center, Nigeria
Henning Larsen Architects
Roles of the outsider
•Applies technical capacity and quality
•“Vouches” for project towards international funding
•Attracts additional international funding
Where to look
•Larger projects
•International financing
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Strategies for entering the Kenyan market
•Partnering with local company
•“Tendering from abroad” very difficult
•On the backs of main Chinese contractors
• (China Wu Yi, China Jiangxi International,
CATIC, COVEC, Edermann Group, Sichauan
Huashi Enterprises)
Formal Requirements
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General condition for doing business in Africa: “Local content”
Architecture in Kenya is a regulated industry – architects need Kenyan license to operate. But:
• A Danish company can enter into agreement with a Kenyan company, which will bid on
the job. They agree on a work and remuneration split
• Or the two (or more) companies create a separate legal vehicle for the project.
A message from the Architectural Association of Kenya:
“Architecture in Kenya is a free market – opportunity exists where you find it.”
“Interaction with Danish companies is most welcome – from the view of the
Architectural Association of Kenya, cooperation would be fantastic.”
– Waweru Gathecha
AAK Chairman
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Selected projects in Kenya
Karen Blixen Museum Extension, Symbion Architects
Strathmore Business School
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GEMS International School, Symbion Architects
Shopping Mall, Symbion Architects
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The Ministry
in Africa
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Reality Checks and Our Role in Africa
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Africa’s collective GDP is approx. 1,8 trillion USD, roughly equivalent to Russia or Canada.
Danish exports to Africa amounts to 1,1% of total Danish exports. This equals the total
exports to the Czech Republic.
Danish exports lag behind the EU average – and the levels of our peers.
Exports to Africa per Capita,
average 2005-11 (DKK)
5,000
4,000
3,000
2,000
1,000
0
What are we trying to achieve and how can we assist you?
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Assisting Market Entry, Mitigating Risk and Making Connections
Investeringsfonden for Udviklingslande
Eksport Kredit Fonden
Davelopment Banks
Local financial institutions
Danida Business Partnerships & Finance
A One Stop Shop for partner search
and screening, market intelligence,
legal guidance, hands-on problem
solving, recruitment, office setup,
door opener to industry networks
and government, visit planning,
logistics, trade barriers…
Danish businesses
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Mandag Morgen
Embassies – Towards 3 regional hubs
West: Ghana / East: Nairobi / South: Pretoria
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Thank you and get in touch!
Elisabeth Manford
Business Counsellor
KE: +254 722 515 317
DK: +45 2170 7362
[email protected]
www.Kenya.um.dk
www.twitter.com/EyesOnKenyaDK
FB: Embassy of Denmark in Kenya
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