[kictanet] My 2cts: ICT Parks

Wed Dec 30 15:51:24 EAT 2009

Thanks Dr Ndemo.

Good to know and sounds great. I echo what one lister mentioned earlier about getting 'snippets' of information. Would help if this information was available on www (is it?) so we have a clearer picture.

Victor 

-----Original Message-----
From: bitange at jambo.co.ke [mailto:bitange at jambo.co.ke] 
Sent: 30 December 2009 13:15
To: Victor Gathara
Cc: bitange at jambo.co.ke; KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] My 2cts: ICT Parks

Thank you Victor.  We are not actually putting up just a BPO Park.  This is a Special Economic Zone that we are jointly putting up with other sector including the financial sector (Finanncial District),  the science park (with all other research institutions), tourism (Hotels), Industrial park as well as a Trade Centre (Convention Centre).  The entire project would include first class hospital and international schools.  It is simply a new city, an exempler on how things must be done.  We have taken into consideration of all the issues raised by Booz Allen.  We are in the process of coming up with the feasibility study by February and a Master Plan by April.

We are revising the Vision 2030 to refer to the BPO sector as IT enebled services (ITES).  We are not to remain a BPO location for ever.  We must climp the ladder to get to the real digital world.  BPO was proposed as bait to get us thinking how we can make money out of ICTs.  Unfortunately, I see many of us getting stuck in this.  The broad thinking is to provide fist world class infrastructure, develop capacity to utilize the infrastructure then leave people alone.  This is called facilitation and ideally entrepreneurialism would then propel economic growth.  But to be honest I get disappointed when those who are supposed to understand this basic theory begin to get confused even before the food cooks.

In the Western ideology which we pretend to subscribe to, political freedom and individual liberties are paramount.  In those other ideologies that have failed they thought success will come from the state managing economic, social and cultural activities.  To some extent this looks fair but it failed to be sustainable.

Whereas the later ideology has had some failures, these we simply market fluctuations and indeed even local banana markets, markets do fail but not the ambitions of a free society.  Therefore, please give us the benefit of doubt that we have put a lot of thought to the SEZ in Athi River.  At lease we are not sitting and not doing anything as it has been in the past.

Ndemo.

> Dr Ndemo,
>
> The following is an excerpt for a paper I wrote  on the impact of the 
> arrival of sub-marine fibre in East 
> Africa(http://www.gg.rhul.ac.uk/ict4d/workingpapers/Gathero.doc). In 
> it I suggest we adopt consultant Booz Allen Hamilton's six levers for 
> successful development of an ICT park strategy for Kenya.
>
> ______________________
>
> ICT Parks
>
>
>
> Kenya's BPO sector cannot succeed without a critical mass of companies 
> at least a handful of which must be of significant size (000s of employees).
> The Government can fast-track an environment conducive to ICT sector 
> growth by fostering ICT parks - one or more buildings in which there 
> is a full range of services including reliable electrical power, high 
> speed lines, cabling, physical security and so on. GoK has undertaken 
> the creation of one such park in Athi River. Building is expected to 
> commence in July. The park will occupy about 5000 acres of land and is 
> expected to employ over 10,000 people. While a positive undertaking, 
> the park should be considered as part of an overall strategy. 
> Consultant firm Booz Allen Hamilton has reviewed the learning from 
> global experiences and suggests six main levers for the successful 
> development of ICT parks:[1] <outbind://20/#_ftn1>
>
>
>
> * Purpose - This element must be articulated up front as it directly 
> impacts the physical environment, regulatory and legal context, 
> economic focus, level of integration to the national economy, etc. To 
> illustrate, parks can focus on objectives dealing with ICT sector 
> development, attraction of foreign investments and/or retention of 
> domestic investments, and incubation of new business. The purpose of 
> the Athi River Park should be clearly articulated.
>
>
>
> * Value Proposition - Central to the success of an ICT park is the 
> definition and enactment of a legal and regulatory framework, 
> provision of adequate infrastructure and facilities, availability of 
> support services, overall quality of life, and location, to name a 
> few. Importantly, the offering of communication-related services such 
> as voice and data telecommunications, managed data services, and media 
> broadcast all play a key role in shaping the value proposition. It 
> would be good to get a blueprint of the park widely circulated showing 
> advantages of businesses being housed there. The government can also 
> make it easy for local or foreign firms to set up operations for 
> example by giving tax incentives to companies, domestic and foreign operating in the park.
>
>
>
>
>
> * Location - The efficiency, effectiveness, and resulting lifestyle in 
> these parks are important attributes. As a result, ICT parks tend to 
> be located in dedicated areas outside the main city and within a short 
> driving distance. They also tend to be located within a short driving 
> distance from the airport as well as prominent universities. This 
> clearly suits Athi River as a choice location with its distance from 
> Nairobi, Daystar University and Jomo Kenyatta International Airport. 
> Last but not least, Booz Allen suggests the park dedicates 30%-50% of 
> their space to green areas with the objective to create a distinctive 
> and attractive environment.
>
>
>
> * Partnership - ICT parks require close links to academic 
> institutions, real estate developers, venture capitals and financial 
> institutions, investment promotion agencies, and national government 
> agencies involved in the ICT sector. To illustrate, and building on 
> the learning of the broader experience of technology parks, nearly 50% 
> of such developments are pursued within university-related premises. 
> It would be prudent for the government to initiate such partnerships in this early stage.
>
>
>
> * Funding - ICT parks can be funded primarily through the private 
> sector (e.g., real estate developers, private investors/placement) and 
> government agencies if required. They are self-sustainable financially 
> and can generate attractive returns. In this regard GoK should seek to 
> enter Private Public Partnerships to ensure that there is private sector buy-in.
>
>
>
> * Competitive Positioning - ICT parks can define their competitive 
> positioning along three dimensions. Firstly, they need a 
> differentiated positioning vis-à-vis other comparable developments 
> within the same region (e.g., within the Arabian Peninsula, such as the Dubai Media city).
> Secondly, they need to offer distinctive benefits at a national level, 
> in particular when considering that 50% of the tenants could represent 
> already established institutions. Thirdly, ICT parks can be defined as 
> part of a regional network of parks. Such a 'constellation' of parks 
> aims to create cross-border synergies and complementary products, 
> services, and strengths. The concept of 'constellation' is already 
> into play at a national level with developments such as the Smart 
> Villages in Egypt having planned presences in Giza (Cairo), Mansoura 
> (Cairo), and Alexandria. The Athi River Park should therefore not be 
> seen in isolation but as part of a constellation of parks. Others 
> could be developed in University towns such as Eldoret, Nakuru and Juja.
>
>
>
>
> ________________________________
>
> [1] <outbind://20/#_ftnref1>  Booz Allen Hamilton: ICT parks offer a 
> fast-track development approach for the Middle East, 
> http://www.ameinfo.com/66995.html <http://www.ameinfo.com/66995.html>
>
>
>
>
> Victor Gathara| UK Department for International Development| Regional 
> IS Manager , East Africa| * email: v-gathara at dfid.gov.uk * Telephone: 
> +254 20
> 2873349 * Fax: +254 20 2873102 * Ftn: 8300 3349 * Mobile: +254 733 
> 414846
> url: www.dfid.gov.uk <http://www.dfid.gov.uk/>
>
>
> DFID, the Department for International Development: leading the UK 
> Government's fight against world poverty. Find out more at 
> http://www.dfid.gov.uk.
>
> The road to Copenhagen: the UK Government's ambition for a global deal 
> on climate change. Find out more at http://www.actoncopenhagen.gov.uk 
> and about DFID's work at http://www.dfid.gov.uk/climate.
> ______________________________________________________________________
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