2007 International Conference and 2007 International Conference and Investment ForumInvestment Forum

The Role of the Kenyan Diaspora in The Role of the Kenyan Diaspora in Kenya’s developmentKenya’s development

Kennesaw State UniversityKennesaw State University

Dr. Bitange NdemoPermanent SecretaryMinistry of Information and Communications

VISION 2030VISION 2030

Globally competitive and Globally competitive and prosperous nation with a prosperous nation with a

high quality of life by 2030high quality of life by 2030

African LionAfrican Lion

10% p.a. over 10% p.a. over 25 years25 years

EconomicEconomic

Issue-based Issue-based people-centred people-centred result-oriented result-oriented

and accountable and accountable democratic democratic

political systempolitical system

PoliticalPolitical

Equitable social Equitable social development in a development in a clean and secure clean and secure

environmentenvironment

SocialSocial

20072007 20302030

Kenya ICT Sector PrioritiesKenya ICT Sector Priorities

1.1. Pursue ICT sector reform agenda (latest -Telkom Pursue ICT sector reform agenda (latest -Telkom privatization/restructuring);privatization/restructuring);

2.2. Expand infrastructure for Kenya to become Expand infrastructure for Kenya to become Africa ICT hub ;Africa ICT hub ;

3.3. Safaricom IPOSafaricom IPO4.4. Provide a push for the growth of the Business Provide a push for the growth of the Business

Process Outsourcing industry;Process Outsourcing industry;5.5. Revamp and extend eGovernment and Revamp and extend eGovernment and

Government internal communications to improve Government internal communications to improve service delivery to citizens and businesses;service delivery to citizens and businesses;

Kenya ICT Sector Priorities Cont.Kenya ICT Sector Priorities Cont.

5.5. Develop rural ICT centers (access to Develop rural ICT centers (access to information and appreciation of information and appreciation of technology throughout the country);technology throughout the country);

6.6. Provide our universities with adequate Provide our universities with adequate access to broadband capacity ; Reform access to broadband capacity ; Reform and enhance ICT R&D, incl. incubation and enhance ICT R&D, incl. incubation centers and PPP; andcenters and PPP; and

7.7. Encourage ICT entrepreneurship.Encourage ICT entrepreneurship.

On-going activities in line with prioritiesOn-going activities in line with priorities

1.1. Communications Bill, Freedom of Communications Bill, Freedom of Information Policy/BillInformation Policy/Bill

2.2. Participation into TEAMS and EASSy Participation into TEAMS and EASSy projectsprojects

3.3. Extending the Broadband Grid: Fibre, Extending the Broadband Grid: Fibre, Wireless Rural Rollout, and Last mile Wireless Rural Rollout, and Last mile Connectivity Solutions, EDGE, CDMA Rural Connectivity Solutions, EDGE, CDMA Rural Access ProjectAccess Project

4.4. Government Information portal (Government Information portal (www.information.go.kewww.information.go.ke) and Government ) and Government Virtual Private Network (led by eGov Virtual Private Network (led by eGov Directorate) Directorate)

On-going activities in line with priorities On-going activities in line with priorities Cont.Cont.

5.5. Madakara PC Project to assemble low Madakara PC Project to assemble low cost PCscost PCs

6.6. The “Digital Village” initiative;The “Digital Village” initiative;

7.7. Multimedia Technology Parks in Athi River;Multimedia Technology Parks in Athi River;

8.8. Promotion of Business Process Outsourcing Promotion of Business Process Outsourcing industry and creation of an ICT Board for this industry and creation of an ICT Board for this purpose; and purpose; and

9.9. eGovernment Rollout – Re-engineering eGovernment Rollout – Re-engineering processes Building Networks and Digitization of processes Building Networks and Digitization of RecordsRecords

Investment Opportunities - InfrastructureInvestment Opportunities - Infrastructure

The East African Marine Systems The East African Marine Systems (Teams) Fibre Optic between Fujiaira (Teams) Fibre Optic between Fujiaira in UAE ;in UAE ;

Network Operating Centers;Network Operating Centers; Data Centers;Data Centers; Disaster Recovery Centers;Disaster Recovery Centers; Digital Radio/TV network: Digital Radio/TV network:

Multplexing.;Multplexing.; Multimedia Technology Park;Multimedia Technology Park;

Investment Opportunities - ServicesInvestment Opportunities - Services

Value Added Services; Premium Value Added Services; Premium NumbersNumbers

CONTENT – CONTENT – Video/Education/Health/Agriculture Video/Education/Health/Agriculture

Business Processing Outsourcing;Business Processing Outsourcing;

Terrestrial Fibre NetworksTerrestrial Fibre Networks

Teams Fibre Optic LinkTeams Fibre Optic Link

Mazara

Optional Fuj. Branch

Toliary

Mtunzini

Maputo

Dar es Salaam

Mombasa

FujairahMumbai

Suez

Jeddah

Alexandria

Toliary

Richard’s Bay

Maputo

Dar es Salaam

Mombasa

Fujairah

Mumbai

Suez

Alexandria

OptionalFujairah Branch

Logical Submarine Fibre Optic Options for AfricaLogical Submarine Fibre Optic Options for Africa

TEAMS TIMETABLETEAMS TIMETABLE

Detailed Feasibility study Completed by Detailed Feasibility study Completed by DRG;DRG;

Procurement of Financial Arranger – Done Procurement of Financial Arranger – Done – Standard Chartered Bank; PPP – Est. Cost – Standard Chartered Bank; PPP – Est. Cost $90;$90;

Detailed Technical Study – Done –Tyco;Detailed Technical Study – Done –Tyco; Marine Survey – March 30, 2007;Marine Survey – March 30, 2007; Supply Contract May1, 2007;Supply Contract May1, 2007; Commissioning of Teams – April 2008.Commissioning of Teams – April 2008.

TKL Bidder profile and bankabilityTKL Bidder profile and bankabilityMaking the deal bankable:

Sale of stake to a strategic partner

TKL advantages: high sites, fiber network, brand name, CDMA network & and new IP-core platform, strong corporate & govt. customer base

Rightsizing of staff prior to sale

Balance sheet restructuring Unbundling of TKL from

Safaricom to allow TKL to compete in mobile

Transparent process – IFC is advisor

Profile of bidder

PIM to be available for download at TKL & Treasury websites soon

Looking for EOIs from potential Lead Investors with at least 35% equity in consortium:

EITHER Operators with min 500,000

lines plus experience in broadband Min revenue size of US$200m Plus ability to pay for share

acquisition and TKL growth OR Financial investor with

investment portfolio of at least $200m with experienced telecom management

TKL Privatisation TimetableTKL Privatisation Timetable

Technology

TechnologyAccess

Mindset

Development imperatives

Content

Infrastructure

ResourceConstraints

Globalization

Priorities

Penicillin OR PentiumPenicillin OR Pentium

Challenges/OpportunitiesChallenges/Opportunities

Role of DiasporaRole of Diaspora

Which ModelWhich Model IrelandIreland MexicoMexico IndiaIndia

Taking Advantage of TechnologyTaking Advantage of Technology Marketing KenyaMarketing Kenya

50,000 Graduates Annually

Emerging Technologies

Skills

Vibrant Private Sector

Human Human CapacityCapacity

1

Why Invest in KenyaWhy Invest in Kenya 1

Sustained OptimismSustained Optimism

SMEsSMEs

Trade Agreements

Port

Geopolitics

LOCATIONAL LOCATIONAL ADVANTAGEADVANTAGE

2

Why Invest Kenya Cont.Why Invest Kenya Cont.2

Technology20%

People60%

POLICY15%

Success FactorsSuccess Factors

Luck5%

“The art of progress is to preserve order amid change and to preserve change amid order. ”

— Alfred North Whitehead,

19th century British mathematician and philosopher

Thank you for Thank you for your kind your kind attentionattention!!