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Konza city Reality.
Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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Ric dees wrote: @Mkeiy...Entrepreneurship and innovation is being talked about continually in Kenya. This isn’t some small-time effort.They’ve been thinking hard and smart about the lessons to be learned not only from Silicon Valley, but with only 40 million people, they are also looking for lessons from other small innovation clusters such as Israel, Singapore and Finland. These countries are great models of countries too small to sustain startups of scale on just domestic consumption yet have managed to create innovation with a global reach.
However that said for a country so focused on innovation and startups the lack of venture capitalists is easily noticeable. Given the interesting things being talked about,one would have thought the place would have been crawling with VC’s fighting over deals. Instead it feels like the government – through ICT BOARD - is doing most of the risk capital investing. Given that great VC’s are much, much more than just a bag of money, this means that startups will lack experienced board members with practical experience. There also seems to be very few stakeholders on-board who know/willing to coach entrepreneurs and to build companies.Lastly there seems to be few tools, techniques and strategies to do so.
Point to note there’s confusion in both the Government about the difference between small business entrepreneurship (startups designed to be family businesses,) scalable startup entrepreneurship (startups designed from day one to scale big inside Kenya and then expand globally) and corporate entrepreneurship
These three types of entrepreneurship need to be explicitly recognized, encouraged and managed
My sense is that Kenya has not yet “declared a major.” Saying that you support entrepreneurship and innovation is a start, but the sentence needs to be finished. Entrepreneurship and innovation in what field? Where will Kenya establish technical and innovative leadership? Is the only way they will attract talent by paying entrepreneurs to come to the country? Or will students and entrepreneurs come to Kenya because it is one of the best places in the world for innovation in certain specific industries (pick your favorite – alternative energy? materials science? food science? cellulose outputs? video games and film? East African web commerce hub? automated mining? UAV’s? etc.)
I think what seems to be missing is a stated goal for Kenya to become a magnet for talent in specific domains. Why will people from East Africa and indeed rest of Africa stream to Kenya, besides its magnificent geography and wild Animals, In what fields will Kenya's universities and entrepreneurial culture create such an irresistible pull?
However, i can point out the elements that made Silicon valley successful, and point out the ones that may be helpful in Kenya; the role of Universities and defense-driven university R&D, the rise of venture capital, a failure-tolerant culture and the emerging science of entrepreneurial education.
So there you go to summarise this, the tech city should be a means to and end not an end itself, we lack glaringly on so many aspects mentioned above and dare i say this, it's about time we stopped focusing on this white elephant projects and start by first feeding our people.
And by the way do you know, the PALM DXB is sinking, do you know due to the huge costs the burj incurred in building and running it will never make money...is this the route you want us to go down to...stay away from the mirage that is Dubai..stay well away.
This info is pro-bono my friend!!
@ Ric, i will be short. The reason why most of the multinationals prefer Nairobi over Dar,Kampala,Bujumbura etc, is the same reason they will prefer Konza city as far as ICT is concerned. I rest my case. Lets talk in 2022. Peace.
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Rank: Elder Joined: 7/20/2007 Posts: 4,432
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 Rick Dees you just solved an equation we were fighting about in the office. Super! Personally, if I knew you were behind the concept, I would have supported it.
In case I get another extermination threat. Let me very clear that I support Kenyan enterprise. But in my capitalist mind, I see no reason why gov't should be engaging itself in real estate projects. That is not its job.
The ICT board should be busy leading Kenyans to the information age. There is no reason why we should not in 2012 have some serious it discussions in Garissa or even Kisumu on the internet. Every home in Kenya should be an outsourcing hub.
I can build my own house and office. All I want is good internet.
Look at the countries that have made it big by gov't simply giving the support neccessary to nature the minds of entreprenuers. Phillipines, the country you hate India, even the Eastern block countries have discovered its the human resource, and facilitation that works. Not buildings.
Don't tell me about where we were in 1999. Where are we now?
Even if you build 15 Konzas and there is no electicity during the dry seasons. Forget about it. When the laws in the country mean that setting up a startup takes no less than a month, then forget about it. If access to funding for all young people is out of the question, then forget about it.
These are all areas where the gov't can do something about.
Business Infrastructure is not 10 storied buildings with manicured lawns. It's an enabling environment. That is the work of gov't. Nothing more and nothing less. If they wanted a real estate company, they should first go through parliament and change their mandate.
And you can take that to the bank!
By the way, don't forget that Tanzania is setting up its own ICT hub. So there is nothing new in this whole idea. Rwanda if you ask me has a bigger chance in running this kind of business.
So lets all be honest. Would you trust a Tanzanian or a Kenyan gov't official? In your answer lies the future of Konza.
@mkeiy no idea. Don't delve in real estate and looking for an office too. Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.
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Rank: Elder Joined: 12/11/2008 Posts: 2,306
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The Americans said that Kenya is good at making plans - in reference to vision 2030 - and that we will never get anything done. I am glad that there are many pessimists here and they are entitled to their opinion, but nothing has ever come out of nothing. I am glad we can be having this kind of conversation which would have been impossible in the KANU years. I am glad we have a dream, which by the way does not mean there will be no challenges! But someone is ready to try something, and they have my support. They may fail, but at least they did not just sit in their carpeted offices and just grow fat!!! Great men are not always wise, neither do the aged understand judgement...
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Rank: Member Joined: 6/27/2011 Posts: 301 Location: Nairobi
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Ric dees wrote:
I echo Konza will be and remain a real estate venture and nothing more.
....until we find local talent providing local solutions then we are doomed even before we start.
These among other comments by people here are in my view totally correct.
In June 2011, I wrote similar sentiments in a blog article about this vision2030 thingy, below are some excerpts from the blog.
"There are no short cuts when it comes to building long term growth paths. It has taken India many decades to be where they are today. India’s exported talent are among the largest contributors to the success story that is Silicon Valley."
"Korea’s exponential industrialization and success in electronics manufacturing has been largely driven by capitalizing on development of human resources. As of 1997, the literacy rates in Korea were at 95%."
"Surprise surprise, Korea is the world’s biggest supplier of DRAM –simply, computer memory."
"One strategically selected industry is enough to propel a country’s growth into a global player. This requires proper understanding of the global markets and forces that affect value creation in any chosen industry."
"In summary, there are no quick fixes to build a prosperous Kenya where we can all lead a “high quality life” by 2030. The government needs to define exactly what value Kenya can deliver to the global markets or the African continent in order to attain economic prosperity. After definition, go ahead and realign everything else in the country to support development and growth of the selected industries."
The entire blog can be read from here: Link
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Rank: Hello Joined: 2/21/2012 Posts: 6
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People - lively debate here! as someone comments, human capital development and entrepreneur facilitation are key and "Not mere buildings". David Talbot a writer with MIT's Technology Review has written about the Kenya Startup Boom - here
http://www.technologyrev...om/communications/39673/
What do Wazuans think about these developments vis a vis the prospects of Konza City?
interested that mobile innovation and mobile entrepreneurship propel East Africa's knowledge economy - www.gmeltdown.com
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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alma wrote:Even if you build 15 Konzas and there is no electicity during the dry seasons. Forget about it. When the laws in the country If access to funding for all young people is out of the question, then forget about it.
These are all areas where the gov't can do something about.
Try googling these:
1.Youth Enterprise Fund (kenya)
2. Kenya Geothermal and wind power projects
Mark 12:29
Deuteronomy 4:16
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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With the info Konza Developers are using to advertise, there is no major difference betwen the Tatu city/Migaa/Thika Greens form of marketing-the main aim is to create alot of hype which in turn increases demand and hence price of land goes up. If this hapens for Konza, investors will look for better places e.g Upper Hill, Ngong road e.tc where land price is equally high and infrastructure already in place.
The best way Govt. should do is try the Kitengela EPZ route-create an 'EPZ' kind of atmosphere with leased land,zero taxes and add ICT attractive features e.g ICT University,cable internet, ICT Gadget Manufacturers just like they do in EPZ.
What i can see with the current marketing is a good and effective method to sell real estate whereby the only winner is the land owner.
As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Veteran Joined: 1/4/2010 Posts: 1,668 Location: nairobi
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@alma very true on your words here .... 'Business Infrastructure is not 10 storied buildings with manicured lawns. It's an enabling environment. That is the work of gov't. Nothing more and nothing less. If they wanted a real estate company, they should first go through parliament and change their mandate.'
For Govt. to use our tax payers money in a real estate ventue, this requires some level of parliamentary approval. Other easier ways Govt could have done without incuring Billions of KES was to push for a bye-law at Machakos /Mavoko counties whereby the Konza and surrounding areas i.e Stoni Athi, Daystar are zoned for ICT usage-this money they used to purchase the land can then be used to lay in basic ICT infrastructure such as Cable internet. Govt could have gone futher to make it semi-EPZ with tax exemptions for ICT related biz. This way, land value will rise normally and investors will find value. Curently, investors who will reap the most are the ones who wil buy land and re-sell at higher prices as opposed to the ones who will invest in ICT.
Govt. role should be creation of enabling environment through supportive laws and infrastructure as opposed to the actual buying land,advertising then selling the same land at a higher price. The best advets could have been by some small start-up with a 1/8th acre say Pesapal,Tangaza money transfer or even Wazua. This company can then advertise their biz.When hundreds of other companies advertise their biz this way,Konza city wil grow out of here esily. Nairobi also grew fromsome dusty shops into a city over time .
The concept of an ICT City at Konza is the best. The way its being advertised and outlayed will need creativity to avoid land overpricing without necessary infrastructure and laws in place. As Iron Sharpens Iron, So one Man Sharpens Another.
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Rank: Member Joined: 6/27/2011 Posts: 301 Location: Nairobi
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a4architect.com wrote:...The best way Govt. should do is try the Kitengela EPZ route-create an 'EPZ' kind of atmosphere with leased land,zero taxes and add ICT attractive features e.g ICT University,cable internet, ICT Gadget Manufacturers just like they do in EPZ.
What i can see with the current marketing is a good and effective method to sell real estate whereby the only winner is the land owner.
For the so called ICT city to take of, we need a highly reliable supply of quality workforce targeted to the ICT sector.
If the goal is to create a knowledge driven economy e.g ICT and based on that attract global players to setup operations in the country, what we should be really doing is creating the knowledge base at a faster rate than building fancy structures.
Having the structures in place but no quality workforce will only lead to importation of skilled labor to work in these fancy structures. In such a scenario, technology transfer may not occur or at the very best it will occur at a very slow pace and the global forces would probably have realligned yet again. Blog
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Rank: Elder Joined: 12/2/2009 Posts: 2,458 Location: Nairobi
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I think there is a very big disconnect in this forum about IT, Government, Business and international current affairs.
The IT scene in Kenya is bubbling, the human resource is ready and needs to be stirred...
There are individuals in the government who don't operate like your normal civil servants, they see beyond votes, real estate and squeezing the taxpayers for selfish gains..
The constitution and the county govenrments are a game changer on how things will be done..
If the Governor of 'Maiyakos' doesnt want this thing to suceed for what it is, then atleast for the Real estate aspect.
The big games have seen other continents and Africa is next as a market or source of innovation.. but id bet on supporting cast and a market.(like India and China)
Now, just to clarify.. I was in the university when MPesa launched and honestly nobody had tangible knowledge about mobiles and mobile applications..
Just after Campus i saw and used Ushahidi, back then a simple Google maps Interface with the mobile component on it, it wasnt that much.
Four years down the line and something has EXPLODED... and its not out of government or lecture rooms.. its courtesy of the information age.. students are picking basics from lecturers and then teaching them one or two new things.
The recession in the west has brought back some smart brains, akin to the KAR soldiers after the world wars, who were instrumental in the independence struggle. This new crop is entrepreneurial, i know a few..
The government and legislatures are very much behind the curve, politicking, when it comes to the new order of information age and doing things.
but with things happening in the cloud, the so called generation Y or is it Z doesn't care, to them its all fun at work.
Sameer tried his business acumen to build an ICT park.. the guys just looked at it and its now a haunted building. He cant do it alone. the I-hub on the other hand is spinning out ideas one after the other.
now statistics tell me not everything in the IT bubble was a success but whatever 20% succeeded made up for the 80% that failed. The same with the Kenyan tech scene..
The brains behind the Konza idea are just betting big from positive outlook of events and extrapolations.
I'd rather have tried than see a bunch of ideas lost, ideas hanging, ideas aborted, just because the government did not facilitate any tiny bit.
Nairobi is the best we have in terms of infrastructure, but multinationals and locals are already fed up with Nairobi as it is.. crowded and corrupt.
Look at our neighbours..Is there one of them ready to even just serve up the East and Central African countries in the information age.. even if just the bare minimum? NADA!! none of them..
thats why the Googles, the Microsofts the Nokias are opening shop here! how well we play our cards determines how well more come in and more local entrepreneurs grow.
Look at Vision2030 see how the whole puzzle fits, ceteris paribas
enjoy the video: http://www.youtube.com/watch?v=D9_6G8J6VJgWhy Kenyans do it Better
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