[kictanet] [KICTAnet] TEAMS | EASSY Fiber Cables Cut? SEACOM | LION?

[robert yawe]

@ Lordmesh

We all tend to look at issues in segments as if through a key hole, more like the issue of the blind men and the elephant.

What this does is we take one component of a system and then make a global decision based on the snippet of information, in the case of the fibre cable we swallowed the anchor story hook, line and sinker immediately closing the ticket.

We have been preached to that the price of electricity is the reason that locally manufactured cement is expensive but no one asks what percentage of the total costs does it constitute.  A company like Bamburi has large expatriate salaries and foreign shareholders to satisfy, Portland cement is by association owned by Bamburi, Mombasa Cement and ARM followed the leaders pricing structure and enjoyed supernormal profits.

So why have the Chinese set-up a cement factory in Kenya, because they have looked at the cost structures of the other producers and realised that the true price is loaded with excessive overheads.  

In addition with Chinese companies having become the largest consumers of cement I suspect they have found it more cost effective to produce their own cement.

Regards
 
Robert Yawe
KAY System Technologies Ltd
Phoenix House, 6th Floor
P O Box 55806 Nairobi, 00200
Kenya


Tel: +254722511225, +254202010696


________________________________
 From: robert yawe <robertyawe at yahoo.co.uk>
To: robertyawe at yahoo.co.uk 
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke> 
Sent: Thursday, 1 March 2012, 17:08
Subject: Re: [kictanet] [KICTAnet] TEAMS | EASSY Fiber Cables Cut? SEACOM | LION?
 

Lordmesh,

Explain to me why the Chinese have decided to setup a factory to manufacture cement locally?

Regards

"Think globally but act locally"  JCI Theme 1999
 
Robert Yawe
KAY System Technologies Ltd
Phoenix House, 6th Floor
P O Box 55806 Nairobi, 00200
Kenya


Tel: +254722511225, +254202010696


________________________________
 From: lordmwesh <lordmwesh at gmail.com>
To: robertyawe at yahoo.co.uk 
Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke> 
Sent: Thursday, 1 March 2012, 8:59
Subject: Re: [kictanet] [KICTAnet] TEAMS | EASSY Fiber Cables Cut? SEACOM | LION?
 

Robert, Chinese cement is cheaper locally, than locally manufactured cement.
Absurd but true.

We cannot run away from the fact that we need cheaper electric energy, and not every business enterprise want to run its own business, and also produce its own electricity.

The only salvation is to go the South African way in power policy.

-- 
______________________
Mwendwa Kivuva
For
Business Development
Transworld Computer Channels
Cel: 0722402248
twitter.com/lordmwesh
transworldAfrica.com | Fluent in computing
kenya.or.ke | The Kenya we know


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KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.
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