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0From a Great Past to a Greater Future

Silicon Savannah

Catherine Adeya, PhDDirector, Ministry of Information and

Communications, Kenya


Kenya ICT Sector Recognized


Kenya: Africa’s Tech Hub


Open Data: Kenya A Global Leader


ICT Investment turning Kenya into Africa’sinnovation hub

US$ 0.5bn direct government expenditure on ICT on80+ technology-enabled projects 2009-14

US$ 500m expenditure planned on Public PrivatePartnership ICT projects 2013-15

Bandwidth Investment:US$ 200m: Phase 1 of 3000km National Fiber OpticNetwork (NOFBI); and undersea cable from KenyaCoast to Fujairah UAE both completed 2009 as PPP.

US$ 300M: Phase 2 of NOFBI commenced

4 Undersea Cables connected


Public sector spending in ICTabout US$ 1.0bn over 5 years(connectivity, & nationalbroadband, governmentautomation, R& D and capacitydevelopment).

Kenya’s growing role as the Africa’shub for ICT investment.

Why do we need Konza Techno City?


Kenya’s market size sits at US$ 2.5bnin 2012 growing to 4.5bn in 2017

Kenya’s flagship investment ofKonza Techno City will be developedover 20 years on PPP worth US$ 8bn

6 million sq meters of development

Konza Rationalization Cont.


Infrastructure and Universal Access to

The Project


LOCATION OF KONZA TECHNO CITY


Project Profile

Exemplar mixed development technologycity on greenfield site 60 kms from Nairobi

EconomicBenefits

200,000 IT-Enabled Services Jobsover 20 yearsWorld class infrastructure to facilitate

research, education and business

SocialBenefits

World class mixed urban development:residential and working environment Enhance local R&D; entrepreneurship


The Eco-System at Konza City

SiliconSavannah

SiliconSavannah

ICT Services1. BPO

2. Software3. Multimedia

ICT Services1. BPO

2. Software3. Multimedia IT enabled

Manufacturing1. Additive

Manufacturing2. Light

Manufacturing

IT enabledManufacturing

1. AdditiveManufacturing

2. LightManufacturing

R&D1. World ClassUniversities

2. Applied ResearchCentres

R&D1. World ClassUniversities

2. Applied ResearchCentresWorld Class Living

1. Mixed Residency2. Green Utilities

3. Public Amenities

World Class Living1. Mixed Residency2. Green Utilities

3. Public Amenities

Services andManagement

Industries

Services andManagement

Industries

Logistics BasedIndustries

Logistics BasedIndustries


Sponsor Profile

Kenya ICTBoard

Implementation agency: Kenya ICTBoard of the Ministry of Informationand Communications .

Implementing the Kenya Transparencyand Communications InfrastructureProject worth US$116m

Ministry ofInformation&Communications

Government Ministry leading theInter-Ministerial co-ordination onthe Konza City Project


INSTITUTIONAL INVESTOR’S AFRICAINVESTMENT CONFERENCE;GATEWAY TO OPPORTUNITY 12th April, 2011 12 12

Investment Summary

•Infrastructure Development USD 2Bn

•Site real estate development USD 5Bn

•Average Expected return:•12 -15% per annum for lease income•20% capital gains per annum (straightline)

Business Case On 5,000 acres

developed in 4 phasesover 20 years

Current ICT andrelated graduates inKenya sit at 20,000growing to 50,000 ayear by 2012.

Kenya is already thehub for internationalIT investors


Konza: Investment Opportunities

Ready-built structures for BPO and ITEnabled Services (ITES)

Commercial office space and Hotels

Real Estate residential properties

Large scale commercial shopping malls

Recreation and entertainment venues

Film and Media Centre

Financial District


Konza: Investment Opportunities cont.

Community support services, includinghealth, clinics, green space, educationalinstitutions, houses of worship etc.

University, research centre and conventioncentre

Transportation infrastructure

World class ICT infrastructure

Utilities, roads and other infrastructure


Ring/radial structure betterfor distributing traffic andpublic transport

Central Business district withFinancial centre

ITES Park in two locations –north and south – betteraccessibility for residents

Wildlife corridors alongwatercourses

Golf course to south alongIviani River

Central Park between CBD &BPO Park (south)

World ClassMasterplanning


Konza Phase 1: 2012-2016Build out Section of ICT Park Related residential Initial infrastructure

Investment Infrastructure: $1.0 B Development: $1.3 B

Investment Make Up ICT Parks: $200 Residential: $975 M CBD: $125 M


Konza Phase 2: 2017-2021

Build Out More ICT park Part of the CBD University City amenities

Investment Infrastructure: $400 M Development: $ 1.3 B

Investment Make Up BPO: $300 M Residential: $850 M CBD: $100 M University: $50 M



Build Out Section of ICT park Complete CBD City amenities Science Park Residential

Investment Infrastructure: $600 M Development: $ 1.5 B

Investment Make Up BPO: $400 M Residential: $700 M CBD: $300 M Science Park: $100 M



Build Out Final phase ICT park and residential

Investment Infrastructure: $150M Development: $ 800M

Investment Make Up BPO: $450M Residential: $250M Science park: $100M


Investment SummaryInfrastructure development $ 2.1 B On-site $ 1.9 B Off-site $ 200 M

Site real estate development $ 4.9 B

Total project cost $ 7.0 B

Average expected return - based on real estate market in Kenya: 12 - 15% per annum for lease income 20% capital gains per annum (straight line)

Four phases over 20 years - Phase 1: $ 2.3B Reduces risk profile Initial infrastructure investment scaled to Phase 1 ($1 B) Phase 1 development focused on ICT park build-up and related residential

and city amenities ($1.3 B)


Establishment of Konza City Development Authoritygazetted and under operationalization

Zoning around the city covering 10km buffer zone on-going

Park Power Requirement Phases incorporated in the LeastCost Power Development Plan (LCPDP) for 2012-2032

Feasibility Study for construction of High Speed Railway lineongoing

Master Delivery Partner Contracted: HR&A Advisors fromNew York; IFC Transaction Advisor

First Investor Conference held in Nairobi in August 2012

Ground breaking by President in October 2012

STATUS OF PROJECT


Welcome to KonzaTechno City……….

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