Konza
City is a new and ambitious project endorsed by the Kenyan government
through the Kenya ICT Board. The aim is to compete economically and
culturally with the best cities around the world, and be known as
Africa's first Silicone Savannah. Does this all sound overly ambitious?
Your not alone if you are slightly cynical about this grand venture.
The
project will supposedly cost 14 and a half billion US dollars to
create, and is hoped to not only decongest Nairobi, but to compete with
it, thus bringing Kenya into the range of middle class income
countries.
Wouldn't that be nice if one city could accomplish all that in under 30 years!
The
concerns that people have in regards to how much is possible, or how
much can be done by the government is marred by years of inefficient,
corrupt, or just plain horrible attempts at improving civil facilities
or urban projects designed to improve living conditions and have become
masters in creating bureaucratic nightmares of any level.
 | |
| Turning this... |
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| Into a bustling Metro |
For years, systematic corruption has deteriorated basic functions like
garbage and traffic control. The roads are increasingly unbearable, as
the people in charge of creating and maintainance use cheaper means and
products, cut corners and look the other way as subpar infrastructure
and standard reak havoc on the society, who in turn have adapted to such
standards.
But
as Africa struggles to position itself as an outsourcing destination
for global clients in Europe and North America, Indian companies are
raking in the few local contracts up for grabs. Now I'm not saying "its
India's fault, they 'stole' the contracts" which unfortunately can
become the reactionary response, but its Africa's fault for not making
an attractive and compelling reason as to why they are better suited.
The dwindling opportunities that multinational companies have provided
are only being supported by the African operations of the mutlinational
corporations. Driven initially by the demand from the telecoms sector,
experienced Indian BPO players are snapping up many contracts, covering
everything from data entry to fielding calls from customers.
However, analysts insist that multinationals will seek out the cheapest
place to do business. Despite increasing wage inflation in India, a
collapse of the rupee which depreciated 11% against the dollar between
March and May - means the US and UK companies are still saving 60-70% by
offshoring to India, according to Shyan Mukerjee, an India-based BPO
analyst at Everest group. The global BPO industry was worth $45 billion
in 2011, says Mukarjee, but Africa makes up less than 7% of that. The
sector's growth in Africa is coming from servicing local operations
rather than answering calls from the US and Europe. Kenya's BPO sector
has shrunk from 45 firms in 2007 to just nine today, according to the
Kenya ICT board. This could dampen the government's target to generate
20'000 direct jobs through BPO operations by 2013 and increase its
contribution to the national economy to Ksh10bn ($110m). The anchor of
this plan was the construction of Konza city, which has been delayed by
government bureaucracy.
Sources:
http://allafrica.com/stories/2012100145.html
©2012 AllAfrica, AllAfrica.com
Wambua Kavila 1/10/12
http://www.theafricareport.com/north-africa/outsourcing-the-indian-connection-and-africa.html
©2012 The Africa Report.
Gemma Ware, Michael Omondi 4/9/12
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