[kictanet] What should the Investment Policy Be?

Thu Oct 16 15:37:09 EAT 2008

Hey Folks, 

I have lurked in the background for a while and like Wainaina I got a bit lost in the exchanges.  But I think one fundamental thread in all this - despite the muddy exchanges - is the question of how do want to engage with Foreign Investors?  JM and others may have a point here - despite their strong language.

So maybe to bring benefit out of all these, we could indulge for a day or two on the Policy we want as far as Foreign Direct Investments (FDI) into our ICT industry are concerned.

Correct me if am wrong but I believe the Government position/policy on this has been that the Foreign investor MUST incorporate a local investor at minimum ratio 20%(local) to 80%(foreign) ownership/equity.  I think the members who feel that this should be changed have cases/examples where the local equity/investor failed to come up with their 20% capital and so the opportunity for investment disappears. On the other hand, other members feel that local investors are abundantly rich and can come up with even over 50% of any capital/equity required to invest in the industry.

I honestly dont know which side is right and which one is wrong - but what I do know is that there exists cases where the local investors have failed to meet their capital requirements - hence the need to review or interrogate whether this policy is detrimental or indeed beneficial to our industry.

Plse lets have objective comments that are devoid of personal attacks and we shall make progress. Otherwise we begin to sound like a broken record.

walu.

--- On Thu, 10/16/08, gachuhi anthony <gachuhi.anthony at gmail.com> wrote:

> From: gachuhi anthony <gachuhi.anthony at gmail.com>
> Subject: Re: [kictanet] PS Ndemo, ECONET Scandal aand Vested Interests
> To: jwalu at yahoo.com
> Cc: "KICTAnet ICT Policy Discussions" <kictanet at lists.kictanet.or.ke>
> Date: Thursday, October 16, 2008, 8:16 AM
> Moderator
> Is there a way off having an online poll to know where we
> stand maybe
> from there we may be able to know who is for or against the
> policies
> being discussed.
> Then we can give reasons as I don't think this a list
> to decide who is
> more kenyan than the other its about what will affect us
> all
> Tony
> 
> 
> 
> On 10/16/08, Wainaina Mungai
> <wainaina at madeinkenya.org> wrote:
> > Dear all,
> >
> > What is the desired outcome of this very energised
> thread? (Select one)
> >
> > A: That the PS (I&C) announce that policies shall
> be developed in an
> > open, transparent and consultative manner. He also
> must organise a
> > forum to kickstart non-emotive talks by mid-November.
> >
> > B: That PS Ndemo resigns and is replaced with a person
> of your choice.
> >
> > C: That the Econet licence, Kencall licence and
> related MoUs,
> > contracts signed by PS (I&C) be cancelled.
> >
> > D: That all stakeholders Govt., KICTANET, KIF, CA, etc
> organise an
> > "ICT Investment" policy forum to be held in
> Nairobi around mid-
> > November 2008.
> >
> > I hope this shall help us focus on defining and
> achieving a common
> > goal so that we desist from personal attacks on
> integrity, racial
> > profiling and so on...
> >
> > Good day,
> > Wainaina
> >
> > On 10/16/08, Joseph Manthi <jmanthi at gmail.com>
> wrote:
> >> Edith,There are some useful lessons - but these
> lessons do not include:
> >>
> >> 1. How to give away your national treasures - like
> bandwidth - to foreign
> >> entities just because they say they can not do any
> business with local
> >> entrepreneurs. In fact I know this for a fact, you
> would never get a
> >> license
> >> to operate in UAE if this was your argument.
> Further to this lesson I
> >> would
> >> like to point to these additional countries that
> would laugh you out of
> >> town
> >> if you made that argument - US (some businesses
> like Airline, Military and
> >> Defense, Telecommunications (not ISP), Radio &
> TV), India, Singapore,
> >> Malaysia, Taiwan, Hong Kong, China, the whole of
> Middle East, South
> >> Africa,
> >> Japan (especially Japan)
> >>
> >> 2. How not be conned. Kenya seems to heading there
> with its eyes opened.
> >> When a man approaches a woman, it would be a very
> stupid woman, who
> >> knowing
> >> what a man is capable of, to accept the BS that
> the man is feeding her.
> >> And
> >> if she does then she deserves what she gets. Kenya
> will get what it
> >> deserves
> >> and very soon. A good example is Russia and its
> oligarchs - all members of
> >> the Forbes Richest.
> >>
> >> 3. Great leadership is necessary to grow a
> country. A leadership with
> >> intestinal fortitude to say no under pressure. Top
> to bottom,
> >>
> >> 4. That the local mwananchi can invest in their
> own country and manage its
> >> growth
> >>
> >> 5. That a great nation looks upon its diaspora to
> grow it - a la Israel
> >> and
> >> India
> >>
> >> 6. That a great nation does not wait to be raped
> twice - We seem to be
> >> following a process that will guarantee our raping
> despite how Kenyan some
> >> members of this committee think they are. Its just
> a matter of time before
> >> they pick up their bags and leave. I really do not
> think that as a
> >> national
> >> planner I should be putting my eggs in that
> basket.
> >>
> >> Joe
> >>
> >> On Wed, Oct 15, 2008 at 4:55 PM,
> <eadera at idrc.or.ke> wrote:
> >>
> >>> Anyone has taken the time to thoroughly study
> the secret behind
> >>> Dubai's tremendous growth? (U.A.E in
> general). There are some useful
> >>> lessons!
> >>>
> >>>
> >>> >
> >>> >---- Original Message ----
> >>> >From: j.maina at ymail.com
> >>> >To: eadera at idrc.or.ke
> >>> >Subject: Re: [kictanet] Fwd:  PS Ndemo,
> ECONET Scandal aand Vested
> >>> >Interests
> >>> >Date: Wed, 15 Oct 2008 09:03:50 -0700
> (PDT)
> >>> >
> >>> >>Lizette
> >>> >>
> >>> >>I think that you have racially
> inclined your mind.
> >>> >>
> >>> >>When did KENCALL directors become
> Kenyans? After getting good
> >>> >friends to bribe their way to this
> country. And let me tell you that
> >>> >the money the so called investors are
> using are Kenyan money not
> >>> >money from foreign banks.
> >>> >>
> >>> >>They have come and borrowed from
> Kenyan banks. How much does the
> >>> >most profitable telecomms companies leave
> in this country, very small
> >>> >amount. We have Telecomms companies which
> are on their marks. They
> >>> >have very inferior systems and dont
> actually deliver in service but
> >>> >make billions and run away with the
> billions.
> >>> >>
> >>> >>Dada Lizette, we know that there are
> Kenyans who are white, black
> >>> >coloured and all but know that I am a
> mixed race Kenyan and really
> >>> >sad when our brotehrs have to suffer
> because of bad policies from
> >>> >people like PS
> >>> >>
> >>> >>JM
> >>> >>
> >>> >>
> >>> >>
> >>> >>----- Original Message ----
> >>> >>From: Lizette Kraft
> <lfkraft at gmail.com>
> >>> >>To: j.maina at ymail.com
> >>> >>Cc: KICTAnet ICT Policy Discussions
> <kictanet at lists.kictanet.or.ke>
> >>> >>Sent: Tuesday, October 14, 2008
> 1:52:07 PM
> >>> >>Subject: [kictanet] Fwd:  PS Ndemo,
> ECONET Scandal aand Vested
> >>> >Interests
> >>> >>
> >>> >>
> >>> >>Just my two pennies worth here.
> >>> >>
> >>> >>Kenya is not an Island that it can
> survive on its own even through
> >>> >local investment. Most times we dont have
> the funds. I do agree
> >>> >though about the Government and banks not
> supporting local investors
> >>> >with loans etc. They must start giving
> them the opportunity to setup
> >>> >local expertise and turn them in money
> making ventures, if only they
> >>> >wouldn't fleece their own companies. 
> Even America, the giant needs
> >>> >investors!!! You all have a valid point
> but use it for the best
> >>> >interests of Kenya and its people first
> and foremost. Not just self
> >>> >interest for the few.  And by the way
> Kenyans come in all shapes,
> >>> >sizes, COLOURS, and creed. So please
> don't generalise who is kenyan
> >>> >and who is not!!!  Kencall directors and
> owners are Kenyan and not
> >>> >outsiders if I understand correctly. When
> we are taxed whether
> >>> >individually or coorporately, the money is
> used for Kenya and Kenyans
> >>> >and not for outsiders who invested! 
> Forcing local partnership in
> >>> >foreign owned companies has
> >>> >> its negative and positive effects.
> >>> >>This needs to be look at more
> seriously to make it a win-win
> >>> >situation. It has been known in the past
> that foreign investors with
> >>> >forced local partnership have been
> subjected to threats and
> >>> >intimidation by the local partners when
> they wanted more than their
> >>> >fare share, (given to them mind you). Thus
> the weariness o
> >>> >>of being forced now. This does not
> attract any investor. But the
> >>> >foreigners should not fleece the country
> either!
> >>> >>
> >>> >>Let us have some constructive
> critisism without being racially
> >>> >inclined. Fight to make things right no
> matter what but without
> >>> >pinpointing nationalities or colours of
> people.
> >>> >>
> >>> >>
> >>> >>
> >>> >>
> >>> >>On 10/7/08, John Maina
> <j.maina at ymail.com> wrote:
> >>>
> >>http://www.wananchiforums.com/showthread.php?p=3150#poest3150
> >>> >>
> >>>
> >>_______________________________________________
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> >>> >>kictanet at lists.kictanet.or.ke
> >>>
> >>http://lists.kictanet.or.ke/mailman/listinfo/kictanet
> >>> >>
> >>> >>This message was sent to:
> lfkraft at gmail.com
> >>> >>Unsubscribe or change your options at
> >>>
> >http://lists.kictanet.or.ke/mailman/options/kictanet/lfkraft%40gmail.
> >>> >com
> >>> >>
> >>> >>
> >>> >>
> >>> >>
> >>> >>--
> >>> >>Lizette Kraft
> >>> >>P.O. Box 18488, 00500
> >>> >>Nairobi, Kenya
> >>> >>Cell: 0722-800362
> >>> >>
> >>> >>
> >>> >>
> >>>
> >>>
> >>>
> >>>
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> >>>
> >>
> >>
> >>
> >> --
> >> Joseph Manthi
> >> CEO
> >> MEO Ltd
> >> http://www.meoltd.com
> >>
> >
> > --
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