[kictanet] Discipline & Ethics - Re: Legislation and Regulationfore-Commerce in Ken

Tue Jul 15 05:39:53 EAT 2008

Kags,

Comparing India and the US to Kenya would be rather disproportionate.
However there is plenty of FDI going into the US from across the world,
thanks to a weak dollar, but even when it does, its not a blank check as
appears to be the case in Kenya. Richard Branson's Virgin Atlantic, Dubai
Ports World, China National Offshore Oil Corp and mostly recently Airbus
have all found out that attempts at major takeovers or entry into sovereign
sectors of the US economy will be met with swift public, political and
regulatory opposition.

You may not be aware but a South African company that failed to make a
breakthrough in Kenya paid $5.4 billion to purchase the 2nd largest brewer
in the US  6 years ago, if we're on the same continent, its not unfathomable
that 10-20 years down the road with the right investment environment and
framework, that Kenyan companies could be on takeover sprees, maybe not on
the same scale, just as the South Africans appear to be on a new takeover
mission in Kenya. However for this to happen there need to be radical
changes that must be implemented through policy, regulation and the legal
framework.

http://money.cnn.com/2002/05/30/news/deals/miller_sab/index.htm

South African invasion
http://www.bdafrica.com/index.php?option=com_content&task=view&id=8707&Itemid=5822

Lack of funding leads to change of strategy
http://www.bdafrica.com/index.php?option=com_content&task=view&id=8751&Itemid=5812

India and China did not magically become economic power houses overnight.
They did it by supporting and investing in indigenous enterprises. Through
their protectionist policies, they are the same countries that
are now keeping the US economy afloat through the purchase of US treasuries
when 10-15 years ago they could have been dismissed as nobodys. Malaysia
while in the midst of an economic depression, quickly realised that FDI was
not the sole answer but government driven investment in local enterprises
to promote private enterprise and ownership was key to regaining the
country's economic prosperity. The key issue is ensuring that in the process
of FDI coming into a country that the country is not loosing its economic
independence and sovereignty. The country needs FDI but not at the cost of
relinquishing the little indigenous economic independence that is left in
Kenya, the truth is, investment by Kenyans (specifically law abiding
citizens) will remain in Kenya, foreign investment is not done primarily
with the core objective of developing Kenya, but for the benefit of the
investors, when the investors are citizens of a foreign country, it is only
logical that the returns will find their way back to those foreign lands.
When the investors are Kenyans whether they got there by way of a stepping
stone (ie government or other) or without one, the chances of investment
returns being reinvested into the country or finding their way back into the
country if invested regionally will ultimately find their way back to Kenya.
Charity begins at home, only Kenyans can help make Kenya competitive in the
global economy, if Kenyans sit back and expect foreign investors on their
behalf to develop the country and promote local entrepreneurship then we
will be a very disappointed lot.

The Zimbabwe type protectionist policies are not the way to go about
enhancing an economy. Mugabe wanted to hang onto power, so he figured he
could gain political mileage and capital by engaging in radical and populist
land grabbing. The motive there was not indigenous economic development but
ultimate dictatorship. There are many examples across the world both in
developing and developed countries where protectionist policies have played
a role in promoting indigenous ownership of enterprises, Zimbabwe just
happens not be a good example.
http://en.wikipedia.org/wiki/Land_reform_in_Zimbabwe#Land_reform_elsewhere

On Mon, Jul 14, 2008 at 11:57 AM, <alkags at alkags.com> wrote:

> My thoughts are yet to organise themselves adequately in my head to comment
> on this issue, however it occurs to me that the argument that you advance
> Mike may inadvertently be 'an eye for an eye' sort of argument.
>
> India and the US for example can do perfectly well without investment from
> Kenya or Africa. in fact, i am led to wonder what the state of affairs is
> with regard to FDI inflows. How much of the FDI inflows in the US originate
> from Africa? And in Kenya, how much of the FDI inflows originate from Kenya?
>
> The social argument you advance in general (while taking exception to the
> racial slurs) is generally sound but does it make sense to the extent that
> it will put Ugali in Wanjiku's mouth (the business argument)?
>
> Zimbabwe tried to be protectionist. Outside of the external factors that
> have surely contributed to the hyper-inflation there, it occurs to me that
> the land he acquired was redistributed among his cronies and within a month
> (i was there), erstwhile lush fields of tobacco lay frigid. I wonder if
> protectionist policies would enhance our global competitiveness as a country
> in the larger scheme of things?
>
> or is it the hard work that people are putting into the development of the
> industry.
>
> Back to Marcel and Kevit, who have been unfortunately dragged into this. i
> have seen them putting in long, hard hours of work for the industry - on the
> ecommerce policy, for example. I wonder if it is fair to villify such
> efforts and what it says about ourselves?
> Sent from my BlackBerry(R) smartphone provided by Celtel Kenya
>
> -----Original Message-----
> From: "Joseph Manthi" <jmanthi at gmail.com>
>
> Date: Mon, 14 Jul 2008 10:54:42
> To: <alkags at alkags.com>
> Cc: kictanet-lists<kictanet at lists.kictanet.or.ke>
> Subject: Re: [kictanet] Discipline & Ethics - Re: Legislation and
> Regulation
>        fore-Commerce in Ken
>
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> This message was sent to: alkags at alkags.com
> Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/alkags%40alkags.com
>
> _______________________________________________
> kictanet mailing list
> kictanet at lists.kictanet.or.ke
> http://lists.kictanet.or.ke/mailman/listinfo/kictanet
>
> This message was sent to: mike.theuri at gmail.com
> Unsubscribe or change your options at
> http://lists.kictanet.or.ke/mailman/options/kictanet/mike.theuri%40gmail.com
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://lists.kictanet.or.ke/pipermail/kictanet/attachments/20080714/d1aec490/attachment.htm>