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<TITLE>Re: [kictanet] Tom Friedman</TITLE>
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<FONT FACE="Verdana, Helvetica, Arial"><SPAN STYLE='font-size:12.0px'>Did you get the pictures of his visit here? How was your visit with him? He sounded very positive having met you...<BR>
<BR>
The US Ambassador and his team were extremely positive about what Tom had to say in his article about Kenya and the prospects for this industry developing into a major part of the regional economy.<BR>
<BR>
Now we need to capitalize on this opportunity and ensure the rest of the world knows what Kenya has to offer.<BR>
<BR>
The BBC did a radio interview last night with us on the World Bank fiber project and have already received half a dozen emails from California to Singapore trying to understand what the subsidy could mean for their doing business out here. Next week a large UK paper also wants to do a story.<BR>
<BR>
The World Bank posted its announcement of its subsidies to the region on its web site on Tuesday, in case people haven't seen it yet. All good... <BR>
<BR>
<a href="http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21281294~pagePK:34370~piPK:34424~theSitePK:4607,00.html">http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21281294~pagePK:34370~piPK:34424~theSitePK:4607,00.html</a><BR>
<BR>
Thanks for all of your support<BR>
Nik<BR>
<BR>
--<BR>
Nicholas A. Nesbitt<BR>
Chief Executive Officer<BR>
KenCall EPZ Ltd.<BR>
Sameer Industrial Park, Mombasa Road<BR>
P.O. Box 27507 – 00506 <BR>
Nairobi, Kenya<BR>
<BR>
+254 (721) 458.458 (mobile)<BR>
+254 (20) 66.02.101 (direct)<BR>
+254 (20) 66.02.222 (fax)<BR>
<BR>
+1.703.937.8970/1 (USA line to Kenya)<BR>
+1.253.484.0006 (USA efax)<BR>
+1.914.380.9444 (USA cell)<BR>
<BR>
www.kencall.com<BR>
<BR>
</SPAN></FONT><FONT SIZE="6"><FONT FACE="Arial"><SPAN STYLE='font-size:24.0px'><B>World Bank Approves US$164.5 Million for Connectivity to Make Kenya, Burundi and Madagascar More Competitive<BR>
</B></SPAN></FONT></FONT><FONT FACE="Arial"><SPAN STYLE='font-size:12.0px'>Up to 25 countries* in East and Southern Africa could benefit from the broader US$424 million Regional Communications Infrastructure Program (RCIP)<BR>
</SPAN><FONT SIZE="1"><SPAN STYLE='font-size:1.0px'><BR>
</SPAN></FONT><SPAN STYLE='font-size:12.0px'><BR>
<B>Press Release No:</B>2007/309/AFR<BR>
<BR>
</SPAN><FONT SIZE="4"><SPAN STYLE='font-size:13.0px'><B>In Washington, DC:</B></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> </SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>Henny Rahardja<BR>
+1-202-473-4857 <FONT COLOR="#1F4D84"><U>hrahardja@worldbank.org<BR>
</U></FONT><B>In Bujumbura:</B></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> </SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>Marie-Claire Nzeyimana<BR>
+257-2-2-2657</SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> </SPAN></FONT></FONT><FONT COLOR="#1F4D84"><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>mnzeyimana@worldbank.org<BR>
</SPAN></FONT></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'><B>In Nairobi:</B></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> </SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>Peter Warutere<BR>
+254-20-322-6444 <FONT COLOR="#1F4D84"><U>pwarutere@worldbank.org<BR>
</U></FONT><B>In Antananarivo:</B></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> </SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>Jocelyn Rafidinarivo<BR>
+261-20-225-6000 <FONT COLOR="#1F4D84"><U>jrafidinarivo@worldbank.org<BR>
</U></FONT></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'><B>WASHINGTON, D.C., April 2, 2007</B></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> </SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>— The World Bank Board of Directors approved on March 29, an International Development Association (IDA) financing package of US$164.5 million for Kenya, Burundi and Madagascar as the first tranche of the US$424 million Regional Communications Infrastructure Program (RCIP) for high-speed connectivity in East and Southern Africa.<BR>
</SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>The region is being held back by the prohibitive costs of international connectivity. Businesses are unable to compete in the global economy; university students suffer because they cannot access the Internet; and Government agencies cannot communicate effectively with each other and their citizens because they are not connected.<BR>
</SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>East and Southern Africa is the only region in the world that is not connected to the global broadband infrastructure and accounts for less than one percent of the world’s international bandwidth capacity. As a result of this ‘missing link’, the region relies on satellite connectivity, with costs amongst the highest in the world.<BR>
</SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>One Kenyan call-center entrepreneur told the World Bank Board of Directors the region simply cannot compete. “<I>To put 25 agents on the phone, it will cost us close to US$17,000 a month. Elsewhere, it will only cost US$600-900 a month,”</I> said <B>Nicholas Nesbitt, CEO of KenCall.</B> <I>“It is absolutely imperative that something be done right now to make bandwidth affordable. Otherwise, we’re going to miss a huge opportunity and people are simply going to say that Africa is not ready for these kinds of jobs, is not ready for business.”<BR>
</I></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>The Board of Directors responded to the appeal and Governments’ requests for assistance by unanimously endorsing RCIP, which will bring affordable high speed connectivity to as many as 25 countries</SPAN></FONT></FONT><FONT FACE="Arial"><SPAN STYLE='font-size:11.0px'>*</SPAN><FONT SIZE="4"><SPAN STYLE='font-size:13.0px'> in East and Southern Africa. The US$164.5 million first tranche of funding consists of IDA credits in the amount of US$114.4 million to Kenya and US$30 million to Madagascar, and an IDA grant in the amount of US$20.1 million to Burundi.<BR>
</SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>RCIP is an innovative example of the emphasis on regional integration, which accounts for more than 10% of total World Bank support to Africa.<BR>
</SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'><I>“Improving broadband connectivity will add tremendous public value for Africa. Low cost, high quality communications is essential for economic competitiveness,”</I></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> </SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>said <B>Paul Wolfowitz, President of the World Bank Group</B>. <I>“Africa is becoming more plugged in - this is very encouraging for the continent. Our partner countries are sending a strong signal to the world that they are open for business and ready to leap into the information age.”<BR>
</I></SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>RCIP financing of terrestrial networks will be a catalyst to attract and maximize private sector investment in telecommunications infrastructure. RCIP complements regional undersea cable initiatives, such as the Eastern Africa Submarine Cable System (EASSy) developed by telecommunications operators with support from the International Finance Corporation (IFC) and other development partners.<BR>
</SPAN></FONT></FONT><FONT SIZE="5"><FONT FACE="Times New Roman"><SPAN STYLE='font-size:16.0px'> <BR>
</SPAN></FONT></FONT><FONT SIZE="4"><FONT FACE="Arial"><SPAN STYLE='font-size:13.0px'>By the end of the Program, it is expected that all capitals and major cities in East and Southern Africa would be linked to competitively priced high-bandwidth connectivity. This will equip Africa to trade on a level playing field, extend education beyond the classrooms, and accelerate good governance.<BR>
</SPAN></FONT></FONT><FONT FACE="Verdana, Helvetica, Arial"><SPAN STYLE='font-size:12.0px'><BR>
<FONT COLOR="#0000FF">> From: <bitange@jambo.co.ke><BR>
> Reply-To: Kenya ICT Action Network - KICTANet <kictanet@kictanet.or.ke><BR>
> Date: Thu, 5 Apr 2007 20:34:02 +0300 (EAT)<BR>
> To: <nnesbitt@kencall.com><BR>
> Subject: [kictanet] Tom Friedman<BR>
> <BR>
> <BR>
> Dear All,<BR>
> Below article was in the New York Times.<BR>
> <BR>
> Regards and Happy Easter<BR>
> Ndemo.<BR>
> <BR>
> <BR>
> April 4, 2007<BR>
> Op-Ed Columnist, New York Times<BR>
> The African Connection<BR>
> By THOMAS L. FRIEDMAN<BR>
> NAIROBI, Kenya<BR>
> <BR>
> Was anybody out there checking out jobs with the U.S. post office in 2005?<BR>
> Do you remember when you called that 800 number to get details? Sure you<BR>
> do. Do you remember how the voice on the other end of the line helping you<BR>
> had this soft British accent with a slight African lilt? Do you know why?<BR>
> Because you were routed to a call center in Kenya.<BR>
> <BR>
> So maybe you weren’t looking for a job, but you had just bought a new<BR>
> computer. And when you turned it on, you clicked the icon for one of<BR>
> America’s biggest Internet service providers to get broadband access. But<BR>
> you needed someone to talk you through getting it connected — so you<BR>
> called that 800 number. The techie who helped you was also a Kenyan at<BR>
> that same Nairobi call center.<BR>
> It’s called KenCall. It is located in an abandoned avocado processing<BR>
> plant, and it is the largest of Kenya’s blooming outsourcing call centers,<BR>
> with almost 300 employees and annual revenues that<BR>
> have grown to $3.5 million since it opened three years ago. If you’re<BR>
> surprised it’s here, so are most of its customers.<BR>
> “I was actually talking to someone in America who had just given birth and<BR>
> she was ordering high-speed D.S.L. for her new residence — three or four<BR>
> hours after the birth,” said Nina Nyongesa, a<BR>
> 25-year-old KenCall supervisor and I.T. graduate of Nairobi University.<BR>
> “She said to me, ‘Where are you?’ I said, ‘Nairobi.’ And she said, ‘Are<BR>
> you sure?’ And she was really happy — so she bought one for herself, one<BR>
> for her mother and one for her mother-in-law. So instead of making one<BR>
> sale I made three.”<BR>
> KenCall is one small reason that Kenya’s economy grew 6 percent last year.<BR>
> Yes, Kenya still has all the ills of other African states — from AIDS to<BR>
> abject poverty. But Kenya also now has a<BR>
> democratically elected government that is learning to get out of the way<BR>
> of Kenya’s entrepreneurs and to get them the bandwidth they need to<BR>
> compete globally. It’s way too early to declare Kenya an<BR>
> economic “African Tiger,” but something is stirring here that bears<BR>
> watching — and KenCall is emblematic of it.<BR>
> The company was started by the half-English, half-Kenyan Nicholas Nesbitt,<BR>
> his brother Eric and his brother-in-law Stephen Liggins. Nicholas Nesbitt<BR>
> and Liggins had made successful careers on<BR>
> Wall Street. But after Kenya’s democratic elections in 2002, they decided<BR>
> to come home and see if they could do good for their country and for<BR>
> themselves by taking advantage of Kenya’s large pool<BR>
> of educated, English-speaking talent to break into the outsourcing industry.<BR>
> <BR>
> There was one big problem. Kenya, like the rest of East Africa, was not<BR>
> connected to any global undersea fiber-optic cable that would give it the<BR>
> cheap high-speed bandwidth of the scale needed<BR>
> by call centers. The Internet here all came via satellite, which is more<BR>
> expensive to begin with and was made even more so by the fact that the<BR>
> Kenyan state phone company had a monopoly.<BR>
> <BR>
> In a rare move in Africa, the Kenyan government decided to give up that<BR>
> monopoly and open competition for satellite-provided bandwidth — even<BR>
> though it meant laying off 6,000 government workers. The competition made<BR>
> KenCall’s business possible. The Kenyan government is now working<BR>
> feverishly to get connected to the global fiber-optic network, via an<BR>
> undersea cable, which would make bandwidth here cheap and plentiful enough<BR>
> for all sorts of outsourcing.<BR>
> <BR>
> KenCall opened in late 2004, taking orders for U.S. late-night TV<BR>
> commercials. Its Kenyan operators sold Yellow Page ads, security alarms<BR>
> and mortgages. But it has since grown its business to include data-entry<BR>
> for one of the premier Wall Street credit-rating firms and handling<BR>
> service calls for global banks and insurance companies. For an economy<BR>
> dependent on coffee, safaris and flowers, this is a real change of pace.<BR>
> <BR>
> “The concept of connecting to the outside world and attracting investors<BR>
> from the outside — that has not been here before,” remarked Stephen<BR>
> Ogunde, another KenCall supervisor. KenCall’s employees can make in a<BR>
> month what half of Kenya’s population makes in a year: around $350. They<BR>
> get health care and free transportation.<BR>
> <BR>
> Don’t give up on Africa. KenCall is a reminder that with a little less<BR>
> government regulation, a little more democracy and a lot more bandwidth,<BR>
> African entrepreneurs can play this game too. “In the<BR>
> old days, ‘landlocked’ meant you didn’t have a harbor,” said Mr. Nesbitt.<BR>
> “In the new days, it means you don’t have fiber broadband to the rest of<BR>
> the world. This whole market here is just waiting for<BR>
> that.”<BR>
> <BR>
> <BR>
> <BR>
> <BR>
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