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[Music]
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turning now to Kenya uh what is Vision
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2030 and what opportunities does it
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offer International
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investors thank you uh Vision 20 30 is
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Kenya's plan and
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strategy our goal of making the country
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a middle inome country by the year 2030
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which we have uh only 20 more years to
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go this is a plan that we developed the
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last 3 4 years uh we have traditionally
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planned in fiveyear Cycles uh which is
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sort of corresponds with uh each
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government is in place for about 5 years
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for five years uh um and and it occurred
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to us that this isn't making sense uh
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that if we are going to get out of the
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sort of levels of poverty that that
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we're in we need to project a little bit
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beyond just 5 years um and so it was a
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national strategic thinking and a
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national strategic planning process that
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we embarked on it involved stakeholders
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across the board government
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non-governmental private sector was very
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very Central in the development of it
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because our government has made this
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commitment that the private sector will
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be the engine of growth we also
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appreciate the fact that if there's
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going to be a movement from the poverty
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uh stage that we are in to becoming a
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middle- inome country uh wealth will
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have to be created employment will have
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to be created the economy will have to
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grow and therefore the private sector
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has a very very key role to play so they
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were very Central in this visioning as
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we called it um and the strategic
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thinking and planning process uh you
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know was stretched over a period of
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about a year and a half so the document
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that we call Vision
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2030 is Kenyans
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visioning uh and imagining what uh a
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developed Kenya a middle-income Kenya
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would look like and within that
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particular uh Vision we have very
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clearly identified a number of pillars
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for getting us to become a middle- inome
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country there's a very strong economic
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pillar and that economic pillar again
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the private sector very Central uh they
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developed a good part of it uh in
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partnership with uh a number of uh
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foreign experts as well um and it is
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about how to position the economy and
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managing the
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macroeconomic uh issues and and aspects
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of the economy uh getting the economy to
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grow at at least 10% and consistently of
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of a period of time what is it that we
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need to do with the economy uh and so
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the private sector very Central and key
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in the economic pillar and and that's a
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very important one and then we have a
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social pillar that looks at all the
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social aspects uh related to food
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production food security Healthcare and
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education and uh shelter water and
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sanitation very very important for us uh
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infrastructure development all a part of
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it and then there's the politic IAL
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pillar the political pillar is is
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equally important because again you
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asked the question earlier about what
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are these risks uh that uh investors
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fear uh when it comes to investing uh in
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the
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continent uh and the fact is that uh
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political instability has cost us a lot
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the last 50 years of Independence the
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level and the extent of political
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instability that we've seen in the
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continent is to a large extent very
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politically motivated uh so that's now
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being managed uh in the case of
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Kenya uh we have just recently acquired
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gotten ourselves a new constitution the
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fourth on the 4th of uh August uh we had
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a referendum the 27th we promulgated the
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new
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constitution uh and and the Constitution
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then provides for us a framework for
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governance and and so within that
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political column political pillar
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governance was a big one so within that
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we're looking at issues of corruption
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for example so again talk about uh
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variables that are not conducive and
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supportive of good uh business and and
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and investment corruption has been a big
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one and you know we can't run away from
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that um we have now with this
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constitution put in place certain
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structures uh and institutions that will
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enable a completely overhauled Judiciary
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for example over the next 12 months the
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judici in Kenya is going to be a new one
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um because we appreciate the fact that
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the some of the problem with regard to
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prosecution for example um and and do uh
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processes in the courts and the
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Judiciary uh as a result of not very
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accountable and not very effective uh
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Judiciary so that's being cleaned up so
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is it your expectation that now that you
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have the new constitution in Kenya uh
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that it will help to increase business
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and Financial transparency because this
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is a matter of tremendous concern uh to
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International investors that there
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should be business transparency
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absolutely
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um the the first group of people in
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Kenya to react to the promulgation of
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the new constitution was actually the
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business
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Community uh and that says something
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they came out uh and congratulated
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Kenyans for for having uh uh achieved
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this uh very historical uh um this major
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historical achievement uh and they spoke
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about why they felt that this was very
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important uh and and they reiterated the
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fact that there have been too many
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things in the environment that have made
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businesses uncomfortable and investors
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uh uncomfortable and a big part of it
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has to do with this
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unpredictability this the level of
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corruption uh now with the new
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Constitution there's even a chapter on
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leadership and integrity what we expect
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of our leaders um the new structures and
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institutions have been created that
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enable the private sector even at this
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point there is a round table between
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Business Leaders and the Prime Minister
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the prime minister's office so regular
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contacts between the government and the
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private sector so that the concerns of
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business are on a regular basis and
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continuously being communicated to the
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government that wasn't the case in many
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African countries uh you know the
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government did what governments do and
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the private sector was busy uh doing
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what they're doing uh producing goods
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and and services uh that has now Chang
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so the linkage between the private
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sector and the government and the
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engagement between the two what our
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constitution has done is that again in
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addition to the fact that the private
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sector also participated in it because
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they wanted to see in this Constitution
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all those factors that contribute
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towards an enabling environment for what
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they need to do in order to to to do
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their businesses and do their businesses
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in a sustainable manner uh they've made
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sure that there are these
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infrastructures and structures and
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institutions to allow this for example
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with our vision 2030 there is a
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national uh committee a national
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economic and social committee uh and
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this committee is uh at the highest
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level it has ministers in it and it has
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all some of the key industry and private
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sector leaders who also see on it so
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this is the oversight
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body that is monitoring and and and and
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ensuring that uh our efforts towards
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this Vision 2030 and becoming middle-
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inome country stays on track uh and so a
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lot of business people uh have a certain
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level their level of comfort with what
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the government is doing and the kind of
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environment that has been created has
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increased quite significantly their
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doors are now open so private sector
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people do not longer
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feel uh like adversaries because they
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had been tensions before between you
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know the private sector and the
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government um and I and I'm seeing that
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happening in a number of African
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countries as well uh as leadership
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changes you're even having a situation
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where you have leaders heads of state
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heads of government who themselves have
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a business background and therefore
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appreciate the role of the business
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community and will do therefore what is
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needed and necessary in order to provide
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that enabling environment for the
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business Community you know you were
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referring earlier to the the social
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pillar uh and and one of the things in
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that as in that regard that has been
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that has sort of caught the imagination
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of a number of people is a number of
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micro finance and social Enterprise
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programs uh to to what degree do you see
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these coming up in Kenya and have you
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seen any acceptable impact on poverty uh
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as a result of social
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entrepreneurship and micro absolutely
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absolutely micro micro Enterprise and
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micro credit programs on the continent
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they're beginning to mushroom everywhere
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uh but in Kenya we have certainly seen
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the impact that that has for for the
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longest time as you know um a lot of
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businesses and financial institutions
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shied away from what they perceived as
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the poor the
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unbankable uh because that it was
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perceived that there wasn't too much
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business to do with that group and and
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because that is such a large group a
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large proportion of the
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continent
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um the this phenomenon that we call now
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micro finance and and micro Enterprise
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is really a thing that was started very
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interestingly in the nonprofit sector
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the NGO sector is the one that quickly
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appreciated that uh the very poor people
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people that they were working with also
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needed to have access to credit and so
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the first microc credit uh institutions
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if if the one that's best known is the
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gramine bank model even that started uh
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as a nonprofit organization by a
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nonprofit organization um with the
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appreciation that we need to get money
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and credit into the hands of the poor
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and that the poor when they have access
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to this credit are able to do some
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incredible things in order to improve
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their lot and I think the commercial
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Banks and all sorts of other micr
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Finance institutions have come in
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subsequently such that you now have a
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fairly significant micro Finance uh
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microenterprise sector that's growing so
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rapidly um and and so we need to to make
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sure that we again maintain the focus on
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making sure that we're looking at the
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poor and and enabling them it's not just
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about credit because what NOS are able
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to do very well that traditional
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commercial Banks were not able to do is
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to invest also in building the capacity
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of the people it's one thing to give to
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make credit available it's another thing
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to make sure that this credit is going
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to be applied properly that people have
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good business plans good projections and
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that they actually are making money um
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so I think the prospects are
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tremendous uh we need to see more I
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don't think we can get
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enough micr Finance and microenterprise
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programs on the continent I think the
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continent must go in that direction
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because I believe it is the way that we
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will be able to grow the economy growing
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the economy from the bottom uh in this
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regard I have uh read that uh Africa and
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in fact Kenya are at the Forefront of
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using mobile telephones in the area of
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uh Mobile Banking yes uh could could you
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tell me what impact has that had on
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these social programs and that's very
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interesting how do you where do you see
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this trend going that's a part of uh
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again opening up the continent opening
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up the economy liberalizing the economy
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um just 10 years ago uh only some
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300,000 or so Kenyans had access to a
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telephone when we liberalized the
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communication sector and opened it up to
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the point where we now have some four
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five uh mobile telephone companies uh
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within a period of 10 years we've gone
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from 300 ,000 Kenyans having access to a
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telephone to now close to 20 million
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having access uh and the Innovations
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within that sub sector are incredible
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that is where one of the leading the
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leading uh mobile uh services provider
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uh safaricom uh has actually innovated a
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money
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transfer uh system uh using the mobile
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telephone what that has done some
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Studies have been done at the in in uh
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The Institute for development studies at
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the University of Nairobi not conclusive
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at this point yet but what they are
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saying is that the
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ability to the facility that the Safari
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comp provides to Kenyans to transfer
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money by telephone may very well have
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contributed more to National development
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than any other investment that the
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government has made since Independence
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just disability to be able to transfer
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money from the people who have the money
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into the hands of people who would not
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you have to realize
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that that most of this rural poor
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population were people who of course
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didn't have banking so sending money
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from point A to pointb was such a chore
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money would get lost money you know all
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sorts of things would happen and those
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are disincentives for people who wanted
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children who work in towns who need to
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send remit money back to support their
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parents and their siblings and so forth
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but now with 20 million handsets in the
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hands of Kenyans a significant number of
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these people being young people middle
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class uh people who now have access to
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some disposable income the ability to
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put money in the hands taking money out
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of the urban setting and urban centers
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into the rural and the peripheries of
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the country and putting that money in
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the hands of the poor is changing the
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economies in in the traditionally poor
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uh rural
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setups and and uh the sky the limit the
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banks have come in later as a result of
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what uh this uh telephone company was
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able to do the banks then started asking
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questions about oh my God you know money
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is being transferred from point A to
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point B they are transferring more money
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than anybody than all the banks put
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together using a mobile telephone and so
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they quickly realized that rather than
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try to compete and and and uh put all
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sorts of OB uh obstacles in the way of
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these money transfers using telephones
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they said let's join them and see if we
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can find uh opportunities for
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Partnerships so what we are seeing now
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is some of the large commercial banks
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are going into Partnerships with mobile
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telephone companies uh to now start
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doing all these other Innovative things
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so that people can now Bank using their
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telephones people can withdraw money
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using their telephones and so forth and
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so on uh again the limit uh the sky is
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the limit when it comes to these
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Innovations and uh um again young people
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30 years of age uh all of them well
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educated trained they're the ones who
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are doing uh bringing about all these uh
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Innovations that's that's a remarkable
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story and thank you for sharing that
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with us uh what just one last question
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uh if you had a chance to address see a
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room full of
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CEOs International CE CEOs of Fortune
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500 companies and tell them why they
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should invest in Africa and why they
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should invest in Kenya What are some of
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the reasons that you would give them I
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think the number one reason would be
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that if you want a
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place where your investment will one
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bring you good returns and will bring
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you good returns in a sustainable manner
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over a long period of time and you're
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willing to wait you do not want to make
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a quick dollar or a quick Euro and and
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jump out and repatriate uh the profits
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if you're in it for the long haul and if
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you are in the business with the mindset
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that you want to make a profit obviously
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as a business as a foreign investor but
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you also want to support the development
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of the
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continent then your time frame must also
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be long-term is yeah so none of that in
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and out quickly
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uh you might make your money but you
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might not do much for but if you want to
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be in it for the long haul and you want
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to do it in a sustainable Manner and you
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want a loyal partner and a loyal
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customer base um then the continent is
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the place to go again because of the
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riches and the Commodities that we have
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available this growing middle class that
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we have this infrastructure that we are
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investing in that will make it possible
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for you being in one African country to
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do business in a whole range of
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countries if you come to Nairobi Now
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talking about Kenya why Kenya an
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investment in Kenya is an investment in
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the entire continent within 4 hours of
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Nairobi you can fly to 24
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capitals uh on the continent uh that
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ought to be an incentive for any
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business person again looking at the
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size of the market uh within the next
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it's predicted five 10 years at the most
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we will have a population of a billion
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uh and if that isn't Market enough then
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I don't know what is so um I think I
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think uh all the sort of ingredients uh
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are in place for for Africa to be the
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the place where an investor a serious uh
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investor uh should be uh Ambassador ODU
00:18:46
thank you so much for speaking to us
00:18:47
thank you thank you very much my
00:18:49
pleasure thank you very much
