[kictanet] My 2cts: ICT Parks

Tue Jan 12 09:48:24 EAT 2010

International good practice for IT parks

http://www.infodev.org/en/Document.557.pdf

On 12/30/09, Victor Gathara <v-gathara at dfid.gov.uk> wrote:
> 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/>
>
>
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>
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