0From a Great Past to a Greater Future
Silicon Savannah
Catherine Adeya, PhDDirector, Ministry of Information and
Communications, Kenya
4From a Great Past to a Greater Future
ICT Investment turning Kenya into Africa’sinnovation hub
US$ 0.5bn direct government expenditure on ICT on80+ technology-enabled projects 2009-14
US$ 500m expenditure planned on Public PrivatePartnership ICT projects 2013-15
Bandwidth Investment:US$ 200m: Phase 1 of 3000km National Fiber OpticNetwork (NOFBI); and undersea cable from KenyaCoast to Fujairah UAE both completed 2009 as PPP.
US$ 300M: Phase 2 of NOFBI commenced
4 Undersea Cables connected
5From a Great Past to a Greater Future
Public sector spending in ICTabout US$ 1.0bn over 5 years(connectivity, & nationalbroadband, governmentautomation, R& D and capacitydevelopment).
Kenya’s growing role as the Africa’shub for ICT investment.
Why do we need Konza Techno City?
6From a Great Past to a Greater Future
Kenya’s market size sits at US$ 2.5bnin 2012 growing to 4.5bn in 2017
Kenya’s flagship investment ofKonza Techno City will be developedover 20 years on PPP worth US$ 8bn
6 million sq meters of development
Konza Rationalization Cont.
9From a Great Past to a Greater Future
Project Profile
Exemplar mixed development technologycity on greenfield site 60 kms from Nairobi
EconomicBenefits
200,000 IT-Enabled Services Jobsover 20 yearsWorld class infrastructure to facilitate
research, education and business
SocialBenefits
World class mixed urban development:residential and working environment Enhance local R&D; entrepreneurship
10From a Great Past to a Greater Future
The Eco-System at Konza City
SiliconSavannah
SiliconSavannah
ICT Services1. BPO
2. Software3. Multimedia
ICT Services1. BPO
2. Software3. Multimedia IT enabled
Manufacturing1. Additive
Manufacturing2. Light
Manufacturing
IT enabledManufacturing
1. AdditiveManufacturing
2. LightManufacturing
R&D1. World ClassUniversities
2. Applied ResearchCentres
R&D1. World ClassUniversities
2. Applied ResearchCentresWorld Class Living
1. Mixed Residency2. Green Utilities
3. Public Amenities
World Class Living1. Mixed Residency2. Green Utilities
3. Public Amenities
Services andManagement
Industries
Services andManagement
Industries
Logistics BasedIndustries
Logistics BasedIndustries
11From a Great Past to a Greater Future
Sponsor Profile
Kenya ICTBoard
Implementation agency: Kenya ICTBoard of the Ministry of Informationand Communications .
Implementing the Kenya Transparencyand Communications InfrastructureProject worth US$116m
Ministry ofInformation&Communications
Government Ministry leading theInter-Ministerial co-ordination onthe Konza City Project
12From a Great Past to a Greater Future
INSTITUTIONAL INVESTOR’S AFRICAINVESTMENT CONFERENCE;GATEWAY TO OPPORTUNITY 12th April, 2011 12 12
Investment Summary
•Infrastructure Development USD 2Bn
•Site real estate development USD 5Bn
•Average Expected return:•12 -15% per annum for lease income•20% capital gains per annum (straightline)
Business Case On 5,000 acres
developed in 4 phasesover 20 years
Current ICT andrelated graduates inKenya sit at 20,000growing to 50,000 ayear by 2012.
Kenya is already thehub for internationalIT investors
13From a Great Past to a Greater Future
Konza: Investment Opportunities
Ready-built structures for BPO and ITEnabled Services (ITES)
Commercial office space and Hotels
Real Estate residential properties
Large scale commercial shopping malls
Recreation and entertainment venues
Film and Media Centre
Financial District
14From a Great Past to a Greater Future
Konza: Investment Opportunities cont.
Community support services, includinghealth, clinics, green space, educationalinstitutions, houses of worship etc.
University, research centre and conventioncentre
Transportation infrastructure
World class ICT infrastructure
Utilities, roads and other infrastructure
15From a Great Past to a Greater Future
Ring/radial structure betterfor distributing traffic andpublic transport
Central Business district withFinancial centre
ITES Park in two locations –north and south – betteraccessibility for residents
Wildlife corridors alongwatercourses
Golf course to south alongIviani River
Central Park between CBD &BPO Park (south)
World ClassMasterplanning
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Konza Phase 1: 2012-2016Build out Section of ICT Park Related residential Initial infrastructure
Investment Infrastructure: $1.0 B Development: $1.3 B
Investment Make Up ICT Parks: $200 Residential: $975 M CBD: $125 M
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Konza Phase 2: 2017-2021
Build Out More ICT park Part of the CBD University City amenities
Investment Infrastructure: $400 M Development: $ 1.3 B
Investment Make Up BPO: $300 M Residential: $850 M CBD: $100 M University: $50 M
18From a Great Past to a Greater Future
Konza Phase 3: 2022-2025
Build Out Section of ICT park Complete CBD City amenities Science Park Residential
Investment Infrastructure: $600 M Development: $ 1.5 B
Investment Make Up BPO: $400 M Residential: $700 M CBD: $300 M Science Park: $100 M
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Konza Phase 4: 2026-2029
Build Out Final phase ICT park and residential
Investment Infrastructure: $150M Development: $ 800M
Investment Make Up BPO: $450M Residential: $250M Science park: $100M
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Investment SummaryInfrastructure development $ 2.1 B On-site $ 1.9 B Off-site $ 200 M
Site real estate development $ 4.9 B
Total project cost $ 7.0 B
Average expected return - based on real estate market in Kenya: 12 - 15% per annum for lease income 20% capital gains per annum (straight line)
Four phases over 20 years - Phase 1: $ 2.3B Reduces risk profile Initial infrastructure investment scaled to Phase 1 ($1 B) Phase 1 development focused on ICT park build-up and related residential
and city amenities ($1.3 B)
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Establishment of Konza City Development Authoritygazetted and under operationalization
Zoning around the city covering 10km buffer zone on-going
Park Power Requirement Phases incorporated in the LeastCost Power Development Plan (LCPDP) for 2012-2032
Feasibility Study for construction of High Speed Railway lineongoing
Master Delivery Partner Contracted: HR&A Advisors fromNew York; IFC Transaction Advisor
First Investor Conference held in Nairobi in August 2012
Ground breaking by President in October 2012
STATUS OF PROJECT