[kictanet] Day 4 of 10- BPO Discussions, Govt Subsidies

[Barrack Otieno]

Walu, and fellow Listers, i think the clause that requires local investors
to on twenty percent might be counter productive for an emerging market such
as Kenya at this point in time, i like d Dr Ndemo's suggestion of requiring
the companies to list on the stock exchange so that locals can then own a
chunk of it, remember Kenya is a "small market" to most multinationals no
wonder large companies prefer dealing with clusters MEA and the likes. On
another note Barclays Bank had a program where they were taking members of
their business club to Hong Kong and the likes, fellow listers we should not
underestimate the Value of EXPOSURE, Kenya has a well educated workforce but
they just need to be tickled by exposure and you will be surprised at the
outcome, could someone help me elaborate on this it may not be scholarly
enough !

On 6/5/09, Walubengo J <jwalu at yahoo.com> wrote:
>
> -Dear Listers,
>
> I must thank all for your insights over the last few days.  I like the
> challenge that asked whether we are "over-regulating" an emerging market as
> the "answer" to the question on if we have legal and regulatory gaps.
> Listers are encouraged to challenge and not just answer the questions. Other
> arising issues included where we want to play within the BPO Value Chain,
> the Impact of the Political (in-)stability, the need to map our Data
> Protection laws to those in the target markets are just but some of the
> highlights I picked - and by all means this is NOT exhaustive as am still
> reading through the contributions.
>
> But today we need to open the theme on Government subsidies. The
> Researchers found the S.Africa and India had elaborate subsidy provisions
> for the sector that included Tax Holidays and Exemptions, Investment Grants
> to BPO operators, Training Subsidies, One-stop shop for Corporate Company
> Registrations that could be 100% foreign owned, etc. The Researchers noted
> the unique Mauritius case which had similar incentives but eventually
> abolished most of them arguing that they were more beneficial to the
> Operators than to the Nation.
>
> On the Kenyan front - other than the not so succesfull Govt Bandwidth
> subsidies for Operators, very little in terms of incentives was available to
> BPO Operators. It was noted that the BPO operators had to be within the EPZ
> in order to enjoy the subsidies other EPZ corporates operates - the problem
> being that most BPO operaters exist outside the EPZ area. Whats more, BPO
> operators had to pay additional charges to be registered by the CCK
> (Regulator) and should be at least 20% locally owned.
>
> Qtn6:  What incentives / subsidies should the government provide to BPO
> operators?  What of the clause requiring 20% Local shareholding in foreign
> companies - is it prohibitive or helpful?
>
> Floor is open comments.
>
> walu.
> Encl: Synthesis 2:- Subsidies and Incentives
>
>
>
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-- 
Barrack O. Otieno
ISSEN CONSULTING
Tel:
+254721325277
+254733206359
http://projectdiscovery.or.ke
To give up the task of reforming society is to give up ones responsibility
as a free man.
Alan Paton, South Africa
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