J » economy

Prices: Up and up

Mon, 14 Nov 2011 17:58:53 +0000

The cost of fuel is up yet again, and as a result, the cost of living goes up again.
A litre of petrol cost me 94 bob on the first day of 2011. From tomorrow, the equivalent quantity will cost 124.13 bob representing a 24 % increase in less than a year, and now at its highest levels ever. The ripple effect will be an increase in cost of basic commodities: food stuffs, given the economy’s reliance on fossil fuel.

Graphically:

Fuel Tracking vs Euro/Dollar from Sept-April

Tue, 03 Jun 2008 10:00:00 +0000

I have been tracking my fuel consumption and came up with this chart (google docs + gadgets) that shows the trend from Sept last year to late April. I will update it with up to date data as soon as I can… Since I don’t fuel daily (of course) the graph may appear spiked at some points.

Later, I am thinking of including the fuel stations I fuel at, and then mash this up with google maps to give a good idea of where to fuel in Nairobi (or not to fuel)..

Budget 2007

Thu, 14 Jun 2007 18:02:00 +0000

I had a look at this years budget themed Vision 2030 — Working Together, on the Path to Prosperity.

Things that I noted:

Target economic growth rate of 6.5-7% for the next financial year (interesting)
Target targets revenue collection of about 21% of GDP (meaning higher KRA targets)
Major privations to look forward to:

Telkom Kenya to an strategic partner (no mention of an IPO)
Additional Shares of KenGen to be sold to the public (but at the ‘right price’)
Part of Safaricom shares to be offered to the public
Part of the Government and NSSF shares in NBK will be sold to the public

I was particularly interested in what allocations would be made for infrastructure development – especially the road & rail network in the country:

The budgetary allocation to roads has been increased from KShs.42.5 billion in 2006/07 to KShs.62.1 billion in 2007/08, an increase of 46%.

Hope this goes some way in easing the infrastructure problem, though I suspect it will not be enough.

Another area of interest for me was on Business Environment, entrepreneurship and the ICT industry in Kenya

1 Billion KES was allocated to the TEAMS project – which aims to have a fiber optic submarine cable landed at Mombasa by next year

Telkom Kenya is undergoing privatization – this is a sleeping giant that will take the market by storm once it is awake.

The Government aims to develop and support an efficient ICT infrastructure that provides easy access to international and national network; establish legislative and regulatory framework for ICT development; and promote and ensure quality ICT education to provide a pool of world class professionals to meet the needs of local and global markets.

No details here really..and this is aimed at Business Process Outsourcing. I hope the plan is to make it as open as possible, and more importantly that in terms of content, software and education, we as a country are not just dependent on foreign companies and countries for our IT system and service needs, but are actively innovating – creating new products and services for the African continent. We also need to keep in mind that with BPO jobs, India among many Asian countries churn out a huge number of technology graduates, a good number of whom are highly skilled. We will need to greatly address ICT education policies and how they are implemented.

Business Licenses:

Originally – 1,325
Eliminated – 110
Simplified – 8
Hopes to eliminate – 205
Simplify – 371

I hope that with the various e-government projects underway that I am aware of, the process of starting a business can be done electronically, within a day. (it’s possible )

Also of note: EAC Partner States will treated as resident investors on the NSE: 5% withholding tax applies to them, as well as the reserve amount of shares for local investors of which it is proposed to increase this from 25% to 40%.

My hope is that implementations on Infrastructure and Business Licenses are actually implemented.

I was hoping for a large budgetary allocation for Security as this is a key pillar of economic development.

I am glad that in the budget, the Minister has clearly recognized that we need to move to a knowledge economy.

Get a copy of the budget speech from the Treasury website

Entrepreneurship in ICT – talk by Richard Bell CEO Wananchi – Held on 25th May 2007

Wed, 30 May 2007 08:05:00 +0000

He started by giving a brief history of his time in Africa, starting with his stint at the Royal Marines, to a Security Consultant in the Sudan and Somalia, before settling in Kenya doing some import and export business.

While involved in business, he realised that while using the KENPAC service for sending and receiving faxes, he was spending quite a bit of cash on international faxes. This was around 1992 and Telkom used to charge $3.50 to send a fax to the US.

While in the US, Richard arranged to meet the owner of Swift Global who were able to arrange a fax service between Kenya and US. After buying equipment at a highly inflated rate , and importing it to Kenya, he set up a service that allowed him to offer fax services internationally from $1.50.

Needless to say, getting customers was not an issue, and lots of money was made (and spent) in the process, as he was getting charged $0.10 to terminate the fax connection in the US from Kenya.

After that, he opened a Uganda office was opened, lots of money was made (and spent).

Swift became a fully fledged ISP later on. Richard the went on to start KDN.

After selling KDN, he later joined London Business School as a Sloan fellow.

He formed East African Capital Partners, a venture fund and acquired 30% of Africa Lakes (which owned Africa Online) a LSE listed company, and after a takeover battle with Telkom SA for the rest of the company, sold the 30% stake at a premium early this year.

Several lessons were learned, not really about technology but things like the importance of having a knowledge of Accounts, Economics, People, Consumers, Employees. It is important to have knowledge of these areas among others for a startup to succeed.

In ICT, it is important to get a job that will provide real hands on experience. For the first 2-3 years, experience not money is the most important thing.

Learning does not stop after college or campus. In business, taking courses in Economics, Finance Accounting can make the difference between being successful or not. ICT after all is a tool.

It is important not to get ‘stuck in rut’, but remain passionate, enthusiastic and keep looking for opportunities, put 150%+ in everything.

Several Questions were raised.
Concerning the ‘first job’ – what should one be looking for?
One that allows hands on use of equipment (not necessarily being hardware). Interact with those with experience. Fix stuff that does not work. Learning takes place when stuff does not work and one has to fix it.

What skill set should one concentrate on developing? Technology vs (e.g) Finance?
This depends on the individual. It is important to work on stuff that you are not normally good at. One never gets good at everything. When developing your business, have people that have skills that you don’t so that they complement you.

How does one attract the first customers.

90% of new businesses fail. The business value proposition should be a ‘no-brainer’ – e.g. offering fax services for $1.50 vs current rate of $3.50.

Where are the opportunities in ICT?

Content – the question is – what do Kenyans want to do on the Internet.
Kenyans are a naturally enterprising lot. (He said that virtually everyone he has employed had a side job, where they worked at over the weekend.. )

To drive the creation of local content. Wananchi will be setting up a sort of incubator where people (especially students) with product ideas will be allocated server space, and can be able to come when available. They will get plenty of local bandwidth (and a little international bandwidth) – all this for free (until up to 3 years – based on their business ideas).

How does one get Venture Capital?
Three things
- The investor does not believe your projections, he just wants to know whether you know what you are talking about.
- the ‘YOU’ factor
- Commitment – demonstrate your commitment.. how hard has one tried to get funding – if you have a rich father and haven’t tried him yet, one probably won’t get funding.

Has the problem of Reverse Subsidies been solved?

Thanks to the support Ministry of Information team of PS Bitange Ndemo and Minister Mutahi Kagwe, at least 2 international fiber optic cables will be landing at Mombasa next year. Reverse Subsidies will become less of a problem.

ICT Debate: Kenya presidential aspirants debate to stream online

Wed, 16 May 2007 09:50:00 +0000

Today (Wednesday 16th May) at 1400hrs EAT

live debate stream on http://idhaa.kenic.or.ke:8001/

Follow via blog – http://beckyit.blogspot.com/

The debate is calculated to ensure that ICT issues are put on the
pedestal during the campaign period and in the process hold the future
leaders accountable given the commitments they will give that day.

More details here.

World Social Forum comes to Nairobi

Mon, 15 Jan 2007 12:16:00 +0000

Over 100 000 visitors descend on Nairobi for the WSF conference starting Saturday. 100000.

That is more people than are found of most constituencies in Kenya.

I suspect we shall be seeing very serious traffic jams snarling up our already congested (and potholed) roads over the next two weeks.
That’s the downside

The upside: 100000 more people (perhaps) getting to know Kenya and it’s attractions for the first time meaning possibly greater improved tourism earnings for this year.

Business opportunities: imagine the guy(s) who has won the tender to print out badges for all delegates at the conference, or the photocopying and catering services as well as the people helping out with logistics and getting paid what looks like a fair amount of money per day.

hmm 2M prezzo

Fri, 08 Dec 2006 08:24:00 +0000

GREED
It’s all plain old GREED – and not just among most of our politicians but among a good number of us Kenyans.

How do we drive – helter skelter in a hurry to get somewhere (yet after dangerously overtaking the ‘slouch’ infront that seems to be in no hurry we end up just 2 seconds ahead of him).. just watch traffic on any road in Nairobi for like 2 hours – a really fascinating study of being in a hurry to go nowhere.

How do we do business – a good number of employers .. milk,squeeze every drop out of an employee while paying peanuts.. a good number of employees .. skiving job or not doing work properly and expecting to get a raise soon

How do we communicate and express our opinions…we can be very intolerant to one another, though we seem to be improving here somewhat. And we also love talking but hate doing mainly because we apparently can’t plan too far ahead – or so it appears..

our political class are all about power and ‘having our people eat’ which is very unfortunate. That’s an extremely short sighted plan of leadership

We have NO STATESMEN/WOMEN i can think of who think beyond themselves. and not $$$$$ and property.

The excuse that some people in gova were earning more than the president isn’t good enough for me.

GIVE THEM A CUT.. NOT RAISE THE PRESIDENTS SALARY

The conspiracy against Africa

Thu, 02 Nov 2006 09:38:00 +0000

I came across this article by Gerald Caplan:

Africa is a mess and it’s not going to get better any time soon. That’s the awful truth that’s so hard to face — or to state publicly — for those of us who have had a long, intimate relationship with the continent.

Mine has lasted for almost 45 years. But from the very start, my experiences in Africa began conflicting with my hopes, indicating trouble afoot, foretelling that our utopian dreams were going to lead to crushing disappointments. Of course, we should have known what the entire 20th century taught: that all utopian dreams fail, not least those wrapped in progressive rhetoric.

The whole article is here

Question is whether Africa is really a mess…

End of Uchumi?

Fri, 02 Jun 2006 12:03:00 +0000

I wonder if this is the end of Uchumi – this step probably should have taken place a while ago.

I now wonder if some rich consortium of guys will now and acquire the assets of Uchumi at a paltry sum and hope to sell it later for a fortune.

Paying Caesar

Thu, 13 Apr 2006 13:57:00 +0000

According to the Central Bank of Kenya (CBK) weekly bulletin released last week, KRA managed to collect Sh201 billion against a target of Sh207 billion, representing a shortfall of 2.5 per cent.

I wonder whether if they actually implemented the tax registers… in proper , customer friendly ways.. they’d probably collect much more…

You don’t have to be confrontational