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

[muriuki mureithi]

True True Sam

It would be helpful with a significant number of comments from those in
kitchen!

MM

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From: kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.k
e] On Behalf Of Sam Aguyo
Sent: 06 June 2009 13:06
To: mureithi at summitstrategies.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: [kictanet] Day 4 of 10- BPO Discussions, Govt Subsidies

 

 

 

Members

 

I would note that surprisingly there is little participation of the
practitioners.  This could be strategic or otherwise.  Their effective
participation would give practical problems affecting the industry on the
ground.  Sometimes it is good to avoid generalization, for example a good
comparison is between same environments - a goat with a goat, a sheep with a
sheep and not a goat with an Elephant, the latter even though animals but
totally different characteristics. 

 

We may want to compare with our Indian brothers; however the environments
could be different.  In this respect facts and figures would reveal more.  I
mean, the government provided this sort of incentive/subsidy targeting this
for this period and the output was this. 

 

Based on this, it would be critical to narrow down to specifics that require
intervention or subsidy, grants.  As an example, the government should
improve the environment within the EPZ by availing affordable and reliable
bandwidth commensurate with the requirements of the players then invite the
players to station there.  In return, such incentive would attract a certain
percentage of players of different configurations able to employ a certain
number of people and such configurations can source jobs from such kinds of
markets. This would add up!

 

We should not loose focus, what would be the return on investment for such
subsidy/incentive.  These words i.e. subsidy/incentive have the propensity
to read handouts. 

 

Sam Aguyo

 

 

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From: Walubengo J <jwalu at yahoo.com>
To: sam aguyo <saguyo at yahoo.com>
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Sent: Thursday, June 4, 2009 9:48:07 PM
Subject: [kictanet] Day 4 of 10- BPO Discussions, Govt Subsidies

-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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