'Technology city' ready to take shape

Kenya is hoping private investors from China will accelerate work on a project dubbed key to industrialization in East Africa

Kenya has turned to private Chinese investors to speed up the development of Konza technology city, a development that is a key piece of the Kenyan government's growth plans but has seen sluggish progress.

The technology city, initiated in 2009, is a $14.5 billion project sitting on 2,020 hectares about 60 km from downtown Nairobi. The plan includes sites for industry, educational institutions, residential development and more.

It is cited in the government's Vision 2030 plan and is touted as the next Shenzhen, the South China city that was a leader in early market-oriented reforms and is now a Chinese technology incubator.

Discussions on more involvement by private Chinese firms took place in November, when a Kenyan delegation was in China for a five-day visit that coincided with the China HiTec Fair. The delegation of public and private sector representatives was led by Konza Technopolis Development Authority CEO John Tanui. They met with BGI founder Yang Huanming, among other private investors.

The discussions revolved around the Chinese company possibly setting up some operations in Kenya. "The biotech company is involved in advanced genetic research that promises to transform global public health policies," says David Mugambi, KOTDA director of business and ICT development.

Konza is billed as a breeding ground where Chinese companies can take advantage of a budding crop of young technology innovators, says Mugambi, adding that the city would also be home to financiers who want to turn these inventions into products.

"Konza is a program with a specific vision of developing innovation and intellectual property, which is scarce in this part of the world," says Mugambi. "I think Chinese companies need to invest in a multicultural approach that will give their inventions an edge."

In the delegation to China, representatives from the private sector were drawn from five successful IT-based companies. This was an indication that local partners were ready for foreign counterparts.

Leading Kenyan companies, including Safaricom, Kenya's leading mobile network provider; software firm Craft Silicon; and Internet service provider Wananchi Online are among those that have shown interest in Konza, according to media reports.

The overarching plan is for the government to create a conducive environment for the private sector to thrive by providing land, legal backing and approval of architectural designs, together with developing the necessary infrastructure.

To sweeten the deal, KOTDA is dishing out incentives for promising investors such as tax holidays. It will also provide security with an uninterrupted supply of water and electricity.

But one of the biggest hurdles facing foreign companies is availability of skilled labor. As Shenzhen developed, the first technology companies there were a source of qualified employees to more advanced successor companies. In Africa, this process has not started.

"We have partnered with the Korea Advanced Institute of Science and Technology to sharpen our graduates' skills," says Mugambi. "We want our human resources to compete globally, and hence we believe this is the right move."

The institute's main function is to turn out advanced scientists and engineers.

Graduates from local universities will be required to undertake postgraduate studies at the advanced institute to sharpen their skills. According to Mugambi, Konza will not only spur development for the manufacturing sector but also create employment in professional fields. It is projected that more than 220,000 jobs could be created here by 2030.

"This will be the first in Africa," he says.

Mugambi says he is aware of the sluggish pace of development Konza has experienced since its inception six years ago. Time has been utilized developing policies and regulations, he says. The human capital at the agency is also expanding.

The authority welcomed a new chief executive in April, while Mugambi is the first director of the industrial city's marketing department, which is tasked with selling the concept to foreign investors.

lucymorangi@chinadaily.com.cn

(China Daily Africa Weekly 01/15/2016 page30)