Transcript Kenya Opportunity

Kenya Opportunity
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Supporting Kenya BPO development
Strategy
Presentation to the World Bank
Singapore June 2009
Kenya
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
Population (million): 37.5

Population Growth (annual %): 2.6

Area (sq km/thousands): 580.4

Capital City: Nairobi

GDP Growth Rate (%): 7.0 (2007)

GNI ($ billion) 25.6

GNI per Capita: US$680

Life Expectancy at Birth: 53.4 years
BPO in Vision 2030
Economic pillar
To maintain a sustained average economic growth rate of 10% per year
over the next 25 years
1. Tourism
Visions
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Goals for
2012
2. Agriculture
3. Wholesale
& retail
4. Manufacturing
5. Business Process
Offshoring
6. Financial services
Be a top 10 longhaul tourist
destination
Innovative,
commercially
oriented and
modern
Move towards
greater efficiency
and at least a 30%
formal market
share*
Improve
competitiveness to
revolutionise
sector
Quickly become
one of the top 3
BPO destinations
in Africa
Efficient and
globally competitive
driving high savings
and financing
investments
• Increase beds
• Raise yields of
• Create 10 hubs
• Create at least 2
• Create 7,500
• Raise savings
•
from ¬40,000 to
¬65,000
Increase visitors
from 1.8 M to 3
M
Transversal
reforms and key
enablers
•
•
key crops by
~3x
Better utilisation
of up to 1M ha
600K-1M new
hectares made
arable
•
•
and 1000-1500
PBGs
10 Tier 1 retail
markets
Add 3 new
retailers with
national reach
Public sector reform
Infrastructure development
People development
Land reform
Source: Vision 2030
SECs with at
least 10 large
international
players as well
as at least 5
SME parks
direct BPO jobs,
5000 of which
are in BPO park
and investment
to ~25-30% of
GDP
BPO in Kenya
• Kenya will focus on becoming a niche player
(as other smaller-scale countries have done).
• Kenya will initially concentrate on basic voice
services for the English speaking market.
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• Under Vision 2030 Kenya will capture a part of
the US 220b global market for BPO, creating
at least 7,500 direct jobs and increasing GDP
by Ksh 10b by 2012.
Kenya’s key challenge
• Attracting new investors against a backdrop of
mixed perceptions among potential investors.
– Connectivity (which we are addressing)
– Leveraging Talent
– Office space
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Our strategy to develop the BPO
sector
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Initiatives underway to greatly improve
access to high-speed connectivity; 2
programs are Government-sponsored.
The East Africa Marine Systems (TEAMS)
• Bandwidth: 640 GB
• 5,600 Kms
• Contract signed. Completion date: June 2009 and will
be fully operational by October 2009 when it is
connected to the NOFBI
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East Africa Submarine Cable System
(EASSy)
• 10, 000 Kms
• Bandwidth: 120 GB scalable to 1.2 TB
• Completion date: April 2010 (fully
operational)
SEACOM
•13,700 Kms
•Construction commenced 2008 ETD Mid 2009
•Bandwidth: 120 GB scalable to 1.2 TB
The National Optic Fibre Backbone
Initiative provides a backbone
throughout Kenya
Central region
Coat and North
Eastern region
Telkom Kenya
Network
Ethiopia
Lokichoggio
Lodwar
Mandera
Moyale
Eastern
Marsabit
Wajiir
Kitale
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Uganda
Rift Valley
__ Weybuye
Eldoret
Nyahururu
Somalia
Nanyuki
Kakamega
Nakuru
North Eastern
Nyeri
Emb
u
Muranga
Kisumu
Kisii
Isielo
Meru
Western
Nyanza
Kericho
Central
Thika
Makau
Tala
Bomet
Garissa
Mwingi
Kitui
Nairobi
Rong
o
770
Narok
Kaljiado
159
Isebania
Western Region
Coast
Garsen
INDIAN OCEAN
Namanga
Malindi
Kilifi
Mobas
a
Tanzania
National Optic Fibre Backbone
Initiative (NOFBI)
• 5,000 Kms
• Nearing Completion
• Down payment paid
• Completion date: February 2010.
Kenya’s BPO ready strengths
• The available pool of employees with suitable
skills and talents forms a good basis for a
BPO&O sector.
• An Investment ready operating environment is
a top Government priority.
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• The communication infrastructure will soon be
world class.
• There is a strong presence of certain service
providers (in HR, IT and Consulting).
• Kenya is cost competitive and therefore likely
to pass basic investor evaluation criteria for
cost
Key Strategies
• Marketing
– Launch an international go-to-market
strategy.
• Operating environment
– Incentives
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– Policy
• Education
– Revise common curricula for BPO
– Implement short-term, specialised and
highly practical BPO&O training all levels
– Coordinate university–industry
collaboration to develop specialised
technical skills for the IT industry
Potential area of World Bank
Support
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World Bank support for skills
development
• Kenya Government will require a minimum of
Ksh 8 billion (USD 95–105 million) over the
next 6 years to develop the industry.
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• The skills required of Kenya’s envisaged BPO&O
industry are for basic voice and data operators
(70%), managers (5%), engineers (10%) and
technicians (15%).
Skills upgrade programme
• Execute extensive interventions to transform
tertiary education:
– Expand universities to increase the
enrolment of students
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– Introduce a compulsory general BPO&O
course in all four undergraduate university
years
– Offer specific, short and practical
postgraduate programmes, focusing on
skills required for basic voice and data
operators this will be offered by TIVETs
– Offer a master’s programme in BPO&O
management
– Collaborate with international universities
to build investor credibility
• Thank you
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