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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>True True Sam<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>It would be helpful with a significant number
of comments from those in kitchen!<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>MM<o:p></o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
kictanet-bounces+mureithi=summitstrategies.co.ke@lists.kictanet.or.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke@lists.kictanet.or.ke] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Sam Aguyo<br>
<b><span style='font-weight:bold'>Sent:</span></b> 06 June 2009 13:06<br>
<b><span style='font-weight:bold'>To:</span></b> mureithi@summitstrategies.co.ke<br>
<b><span style='font-weight:bold'>Cc:</span></b> KICTAnet ICT Policy
Discussions<br>
<b><span style='font-weight:bold'>Subject:</span></b> [kictanet] Day 4 of 10-
BPO Discussions, Govt Subsidies</span></font><o:p></o:p></p>
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<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Members</span></font><o:p></o:p></p>
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style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>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. </span></font><o:p></o:p></p>
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style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>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. </span></font><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>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!</span></font><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>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. </span></font><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'> </span></font><o:p></o:p></p>
<p class=MsoNormal style='text-align:justify'><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>Sam Aguyo</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> <o:p></o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> Walubengo J
<jwalu@yahoo.com><br>
<b><span style='font-weight:bold'>To:</span></b> sam aguyo
<saguyo@yahoo.com><br>
<b><span style='font-weight:bold'>Cc:</span></b> KICTAnet ICT Policy
Discussions <kictanet@lists.kictanet.or.ke><br>
<b><span style='font-weight:bold'>Sent:</span></b> Thursday, June 4, 2009
9:48:07 PM<br>
<b><span style='font-weight:bold'>Subject:</span></b> [kictanet] Day 4 of 10-
BPO Discussions, Govt Subsidies<br>
</span></font><font size=2 face=Arial><span style='font-size:10.0pt;font-family:
Arial'><br>
-Dear Listers, <br>
<br>
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. <br>
<br>
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. <br>
<br>
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.<br>
<br>
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?<br>
<br>
Floor is open comments.<br>
<br>
walu.<br>
Encl: Synthesis 2:- Subsidies and Incentives<br>
<br>
<br>
<o:p></o:p></span></font></p>
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