<html><body><div style="color:#000; background-color:#fff; font-family:times new roman, new york, times, serif;font-size:12pt"><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; ">@ Lordmesh</div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><br></div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; ">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.</div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><br></div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; ">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.</div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><br></div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; ">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.</div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "><br></div><div><font size="3">So why have the Chinese </font>set-up<font size="3"> 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. </font></div><div><font size="3"><br></font></div><div><font size="3">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.</font></div><div><font size="3"><br></font></div><div><font size="3">Regards</font></div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; "> </div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; ">Robert Yawe<br>KAY System Technologies Ltd<br>Phoenix House, 6th Floor<br>P O Box 55806 Nairobi, 00200<br>Kenya<br><br></div><div style="font-family: 'times new roman', 'new york', times, serif; font-size: 12pt; ">Tel: +254722511225, +254202010696<br> <div style="font-size: 12pt; font-family: 'times new roman', 'new york', times, serif; "> <div style="font-size: 12pt; font-family: 'times new roman', 'new york', times, serif; ">
<div dir="ltr"> <font size="2" face="Arial"> <hr size="1"> <b><span style="font-weight:bold;">From:</span></b> robert yawe <robertyawe@yahoo.co.uk><br> <b><span style="font-weight: bold;">To:</span></b> robertyawe@yahoo.co.uk <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, 1 March 2012, 17:08<br> <b><span style="font-weight: bold;">Subject:</span></b> Re: [kictanet] [KICTAnet] TEAMS | EASSY Fiber Cables Cut? SEACOM | LION?<br> </font> </div> <br><div id="yiv692937316"><div><div style="color: rgb(0, 0, 0); background-color: rgb(255, 255, 255); font-size: 12pt; font-family: 'times new roman', 'new york', times, serif; "><div><span>Lordmesh,</span></div><div><span><br></span></div><div><span>Explain to me why the Chinese have decided to setup a factory to manufacture cement
locally?</span></div><div><span><br></span></div><div>Regards</div><div><br></div><div>"Think globally but act locally" JCI Theme 1999</div><div> </div><div>Robert Yawe<br>KAY System Technologies Ltd<br>Phoenix House, 6th Floor<br>P O Box 55806 Nairobi, 00200<br>Kenya<br><br></div><div>Tel: +254722511225, +254202010696<br> <div style="font-size: 12pt; font-family: times, serif; "> <div style="font-size: 12pt; font-family: times, serif; "> <div dir="ltr"> <font size="2" face="Arial"> <hr size="1"> <b><span style="font-weight:bold;">From:</span></b> lordmwesh <lordmwesh@gmail.com><br> <b><span style="font-weight:bold;">To:</span></b> robertyawe@yahoo.co.uk <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, 1 March 2012, 8:59<br> <b><span style="font-weight:bold;">Subject:</span></b> Re: [kictanet]
[KICTAnet] TEAMS | EASSY Fiber Cables Cut? SEACOM | LION?<br> </font> </div> <br><div id="yiv692937316">Robert, Chinese cement is cheaper locally, than locally manufactured cement.<br>Absurd but true.<br><br>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.<br>
<br>The only salvation is to go the South African way in power policy.<br><br>-- <br>______________________<br>Mwendwa Kivuva<br>For<br>Business Development<br>Transworld Computer Channels<br>Cel: 0722402248<br><a rel="nofollow" target="_blank" href="http://twitter.com/lordmwesh">twitter.com/lordmwesh</a><br>
transworldAfrica.com | Fluent in computing<br><a rel="nofollow" target="_blank" href="http://kenya.or.ke">kenya.or.ke</a> | The Kenya we know<br><br>
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