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									                                                             JOH-KYA001-20070204-JvW-P1




Delivering on Vision 2030
   By Wahome Gakuru (PhD)- NESC



   March 2007




   This report is solely for the use of client personnel. No part of it may be
   circulated, quoted, or reproduced for distribution outside the client organization
   without prior written approval from McKinsey & Company. This material was
   used by McKinsey & Company during an oral presentation; it is not a complete
   record of the discussion.
Contents




   •Background

   •National Visioning
   •Kenya Vision 2030 Project Approach

   •Sector Selection Process




                                         1
Historical context
• Kenya has in the past had two long-term policies and several
  5 Years Development Plans that have guided planning and
  investment: The first was Sessional Paper No 10 of 1965:
  African Socialism and Its Application to Planning in Kenya,
  and the second was Sessional Paper No 1 of 1986:
  Economic Management for Renewed Growth.
• These plans attempted to confront the country‟s most
  entrenched problems – by charting a vision of how
  development would tackle them.
• Whereas the economy grew by an average of 6 per cent over
  1964-1980 and 4.1 per cent over 1980-1990, the period
  1990-2002 was a period of declining per capita income with
  GDP growth of 1.9 per cent against a population growth of
  2.9 per cent.
• However, since, 2003, We have made tremendous effort to
  get the economy back on track through the ERS with the
  GDP growth rate shooting back to 5.8 percent by 2005.
                                                                2
Taking stock of National Development under the ERS to date

 Revenue Growth by over Kshs 140 B – from Year 2001/ 02.
 Primary school enrolment 7.6 Million - Year 2005.

 Health Facilities 4,557 –Year 2003 -4,912 – Year 2005
 CDF & LATF, etc

 Percentage of Roads in poor state fell to 32% -Year 2005.

 Oversubscription of the KenGen and ScanGroup IPOs earlier this year is an
 example of the confidence which the Kenyan economy enjoys among local and
 foreign investors.

 The most dramatic change in our economy in the past year has been in the
 telecommunications sector. The mobile telephone subscription base in Kenya went
 up by 57 percent in 2005, connecting 5.6 million subscribers

 Some 400 million SMS were exchanged by Kenyans in 2005


                                                                                   3
After Economic Recovery What Next?

• These highlights of our economic performance simply demonstrate that
   we have reached and exceeded the stage of economic recovery that the
   ERS targeted.

• But the ERS is coming to an end in December 2007.

• The question then is “What Next?” And this is where the Kenya Vision
   2030 comes in.

• Please note that the Kenya Vision 2030 is a strategic plan, which will in
   turn be implemented in 5 year development plans/phases to coincide
   with the electoral cycles.

• Therefore, every succeeding government will be evaluated by Kenyans
   on the basis of the targets and milestones in the Vision 2030 document.

• For this reason, the Kenya Vision 2030 is a National Project and not a
   government-of-the-day-project.

                                                                              4
Present Challenges: What challenges must we as a Nation overcome
through the Vision?


  1. Unemployment Especially In Youth- Most Jobs
    In Informal Sector.

  2. Income Redistribution – Inequality

  3. Low Saving Ratio (16%) Compared To Need
  4. Rapid Urbanization – 6 % Annually
                      Year 2001- 33%
                      Year 2030- 60%




                                                                   5
Composition of our Economy over time: An underlying structural
Problem
                                         Se ctoral Share s in Re al GDP - 1964 - 1995

                    70


                    60


                    50
 Percentage Share




                    40                                                                         Agriculture
                                                                                               Manufacturing
                    30                                                                         Services


                    20


                    10


                     0
                          1964-73     1974-79         1980-89          1990-95          2004
                                                      Ye ars



• This figure shows that there has not been those expected structural
                    changes in the sectoral shares of real GDP since independence.

• The right picture for economic take-off would be that the share
                    (percentage) of Agricultural sector contribution should be significantly
                    going down while that of Services and Manufacturing should be going up.
                                                                                                               6
                             GDP Growth Rates Trends 1965-2003
           24

           22

           20

           18

           16

           14

           12

           10
Rate (%)




           8                                                                                                          GDP Growth Rates
           6

           4

           2

           0
                1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
           -2

           -4

           -6

           -8                                            Year




                                                                                                                                         7
Future Challenges

                                         Projected Population Growth

                            60

                            50
     Population (Million)




                            40

                            30                                                      Series1

                            20

                            10

                             0
                                 1969    1979     1989    1999     2025    2045
                                                     Years


                             Therefore: the Economy must grow to cater for this !
                                                                                              8
Future Challenges cont …




 • Globalization- Increasing international competition

 • Climate change- Global warming, ETC.,




                           We must start to tackle these
                           challenges now!!


                                                           9
Contents




   •Background

   •National Visioning
   •Kenya Vision 2030 Project Approach

   •Sector Selection Process




                                         10
THE ROADMAP BEING DEVELOPED FOR KENYA’S ECONOMIC
TRANSFORMATION JOURNEY HINGES ON THREE KEY ELEMENTS




                                 • Overarching goal toward which Kenya aspires
                                   over a the next 25 years

                        Vision


                                 • Tangible approach which Kenya will follow to
                                   achieve the vision (e.g., which sectors to prioritise,
                   Strategy        which projects to launch, which specific skills to
                                   develop)



                                 • Concrete plans to execute and deliver on the
                                   strategy (e.g., activities, roles and
                 Plans and
                                   responsibilities, milestones, timing, tracking
               implementation
                                   mechanism)




Source: Team analysis                                                                       11
MANY COUNTRIES HAVE GONE THROUGH THE FIRST STEP OF
DEVELOPING A COUNTRY VISION


Country                  Vision              Central theme of the vision

          Malaysia       • Vision 2020       • Malaysia to be a fully developed country by 2020

          Singapore      • New Singapore     • To turn Singapore into a “globapolis”, a global city

          Nigeria        • Vision 2010       • To build and sustain a democratic society and to
                                              become Africa‟s leading economy

          India          • Vision 2020       • India to be counted as a developed nation by 2020

          China          • Three Step        • Build a moderately well-off society in an all-round
                          Development         way that benefits over one billion people
                          Strategy

          South Africa   • Programme         • To achieve higher rates of economic growth and
                          of Action           development, improve the quality of life and
                                              consolidate social cohesion

          Russia         • Social and        • Boost the competitiveness of the country
                          Economic Program

                                                                                                      12
HOWEVER, A COMPELLING VISION ON ITS OWN IS NOT ENOUGH

  1
      Developing an                     3
      aspirational,                         The strategy must be
      directional, and                      supported by a realistic
      inspiring vision                      and concrete action plan
      around which all                      that will ensure that the
      stakeholders can rally                strategy is delivered
      is a critical first step

                                                                         Vision – 15 yrs
                                                  Vision – 10 yrs        Destination C
                                                  Destination B
                       Vision – 5 yrs
                       Destination A




 Today                                                2
                                                          This vision must absolutely be comple-
                                                          mented by a robust and integrated
                                                          strategy that will help achieve the vision
                                                                                                       13
Contents




   •Background

   •National Visioning
   •Kenya Vision 2030 Project Approach

   •Sector Selection Process




                                         14
KENYA VISION 2030




                                                                Overarching vision
                                                             A globally competitive and
                                                           prosperous nation with a high
                                                               quality of life by 2030
            Vi-
           sion


                                         Economic                     Social                     Political
         Strategy                                              A just and cohesive           An issue-based,
                                        To maintain a
                                          sustained             society enjoying            people-centered,
                                     economic growth of          equitable social          result-oriented, and
                                      10% p.a. over the         development in a              accountable
      Plans and                         next 25 years           clean and secure           democratic political
                                                                   environment                    system
    implementation




Source: NESC Vision workshop, January 13–14, Naivasha, Kenya                                                      15
THE SIZE OF THE PRIZE FROM ACHIEVING THIS VISION IS SIGNIFICANT
ECONOMICALLY…
                                   Real GDP growth rates
      High-growth countries        % CAGR                                            Potential Kenya GDP
                                                                                     Nominal, $b
      Singapore (1986–1996)                                                    9.3                         169
                                                                                               153.4
      Dubai (1992–2002)                                                  8.4

      Hong Kong (1978–1988)                                              8.2

      Chile (1988–1998)                                              7.6
                                                                                            15.6
      Malaysia (1990–2000)                                         7.0
                                                                                            2005         2030
      Medium growth countries
                                                                                     Potential Kenya GDP/capita*
      India (1995–2005)                                      6.0                     $

      Singapore (1995–2005)                           4.7                                                3,065
                                                                                               660%
      Malaysia (1995–2005)                            4.6

      Nigeria (1995–2005)                             4.4

      South Africa (1995–2005)                  3.1                                         464

      Kenya today
                                                                                            2005           2030
      Kenya (1995–2005)                   2.0               10.0%
                                                                                       Opportunity for Kenya to
                                                                                       join the ranks of Middle-
                                                                                       income countries by 2030
      * Assuming 2% population growth rate similar to 1990–2005 period
Source: McKinsey; Global Insight                                                                                   16
…AND THIS GROWTH IN GDP WILL BE DEPENDENT ON PROPER
STRATEGIES AND TARGETING OF THE SOCIAL AND POLITICAL
GOVERNANCE PILLARS, IMPLYING


 •Better access to affordable and high quality health care

 •Affordable and high quality education at all levels

 •A just and cohesive society

 •A more equitable society
 •Secure and clean environment

 •An issue-based, people-centered, result-oriented, and accountable
 democratic political system, among others




                                                                      17
THE VISION HAS SO FAR RECEIVED BROAD SUPPORT FROM VARIOUS
STAKEHOLDER GROUPS ACROSS THE COUNTRY
  Process was launched by H.E. President           . . . and there has been broad support for the
  Kibaki, 30 Oct 2006 . . .                         vision so far

                                                   This is a good follow-up to the ERS and will
                                                   break the cycle of promises made and not
                                                   delivered in the past
                                                                     — National Aids Control Council


                                                   Vision 2030 should energise Kenyans to slay the
                                                   dragon of implementation
                                                                                   — World Bank


                                                   The Vision will create higher quality of jobs for
                                                   Kenyans and could even double the GDP of
                                                   Kenya in 3 years
                                                      — Ministry of Information and communication

                                                   In the past we have been too individualistic, the
                                                   Vision gives Kenyans a collective dream, which
          “Vision 2030” is a call to all Kenyans
                                                   now needs to be implemented or else it will
          to make it possible to wipe out our
                                                   remain as a dream
          land from absolute poverty
                                                                          — Central Bank of Kenya
                     — H.E. President Kibaki

Source: Kenya Vision 2030 launch; interviews                                                        18
THE FOCUS OF THE VISION 2030 PROJECT IS TO DEVELOP CONCRETE
STRATEGIES AND A ROBUST ACTION PLAN TO MAKE THIS VISION A
REALITY

                                                                         Overarching vision
                                                                      A globally competitive and
                                                                    prosperous nation with a high
                                                                        quality of life by 2030


               Vi-
              sion
                                                 Economic                      Social                     Political
                                               To maintain a            A just and cohesive           An issue-based,
                                                 sustained               society enjoying            people-centered,
          Strategy                           economic growth              equitable social          result-oriented, and
                                              of 10% p.a. over           development in a              accountable
                                             the next 25 years           clean and secure           democratic political
                                                                            environment                    system
       Plans and
     implementation



                                                   Current                    Concurrently outlining key social
                                                   focus of                    and political pre-requisites to
                                                    project                    achieve economic aspirations
Source: NESC Vision workshop, January 13–14 2006, Naivasha, Kenya                                                          19
INITIAL FOCUS ON THE ECONOMIC PILLAR IS PART OF A BROADER AND
LONGER PROCESS TO START REALISING THE VISION
                                                                                            Current focus




                                                     Drive successful implementation of the Vision




                                                     Roll out sector
                                                     strategies to other
   Phase I                Phase II     Phase III     sectors of the economy
   High-level             High-level   Master plan
   diagnostic &           strategies   and comm-     Finalise concrete
   benchmarking                        unication     strategies and action
                                                     plans to deliver on
                                                     social and political
                                                     pillars



                                                     Communicate, Communicate, Communicate



                        4 months                                   12–18 months

Source: Team analysis                                                                                20
PROJECT APPROACH AND TIMELINE
                                                                                                                 MX   Module X
                                                           We are here

            Phase I – High-level                                                          Phase III – Master plan
            diagnostic and                      Phase II – High-level                     and communication/
            benchmarking                        strategies                                syndication

                                                                                                   Master plan and
                 Implications                                                                   M8 management
Portfolio




            M1
                 of vision                                                                         approach
                                                           Portfolio objectives
                                                      M5
                                                           and priorities                          Monitoring and
               High level                                                                       M9 implementation
            M2 portfolio                                                                           dashboard
               diagnostic

                                                                                                M10 Resources
                     High-level
                  M3 diagnostic of                       Contours of sector
                     key sectors                      M6 strategy – 4 key
                                                                                                      Communication
Sectors




                                                         sectors                                M11
                                                                                                      plan

                                      Diagnostic
                                   M4 of quick win
                                                             Strategy and plans
                                                        M7                                            Launch of quick-
                                                             to deliver quick wins              M12
                                      projects                                                        win projects

                                                                6
        29/11         7 weeks*          09/02 12/02                 week          23/03 26/03          3 weeks         13/04
                                                                    s
Source: McKinsey                                                                                                           21
THE PORTFOLIO DIAGNOSTIC SHOWS SIGNIFICANT OPPORTUNITY TO
BUILD ON THE MACRO-ECONOMIC STABILITY ACHIEVED IN KENYA

  Focus areas             Summary of key messages from diagnostic

                          • Kenya‟s economic recovery strategy has created a stable
   Kenyan economic          macroeconomic environment and produced robust GDP growth
   context                  over the past few years

                          • Growth has been fairly broad-based across all sectors, in
                +           particular in communications, energy, manufacturing and tourism


                          • While on the up-tick, Kenya still has significant opportunity to
   High growth country      improve across several key dimensions
   benchmarks               – Investment levels are relatively low and widespread across sectors
                            – Development spending has been low and overly focussed on
                              administration and social services
                            – Employment remains highly informal with low levels of productivity
                +
                          • Vision 2030 is aspirational and Kenya will be the 3rd country in the
   Implications for the     world to achieve such growth
   Vision                   – The first step is to identify key (sub) sectors with significant
                              potential which can be unleashed in the short-term
                            – Strong need to focus investments on a few key „growth‟ engines
                              to promote growth initially
                            – These are likely to change overtime to sustain the growth
Source: Team analysis                                                                              22
BREAKDOWN OF THE KENYAN ECONOMY BY SECTORS*                                                                                (% formal GDP, % format jobs)

                                            • Industrial                 • Food                        • Wholesale                  • Oil & gas
                                                – Tea                        processing,                   & Retail                 • Minerals
                                                – Coffee                     Beverages                 •   Financial                  –   Soda ash
                                                – Sugar cane                 and Tobacco               •   Tourism                    –   Flousphor
                                                – Cotton                 •   Refined                   •   Business                   –   Salt
                                                – Tobacco                    Petroleum                     services                   –   Limestone
                                                – Sisal                  •   Textiles,                 •   Others                     –
  Vertical sectors (57, 47)




                                                                                                                                          Titanium
                                                                             Apparel &
                                            •   Horticulture
                                                                             Leather
                                                – Fruit                      Goods
                                                – Vegetables   Manu-
                                                                         •   Forest
                              Agriculture                                                  Services                    Extractive
                               (24, 18)         – Flowers    facturing
                                                                             products       (21, 15)                    (<1, <1)
                                                – Nuts        (12, 14)
                                                                         •   Chemicals
                                                – Spices                 •   Equipment &
                                            •   Food crops                   Machinery
                                                – Cereals                •   Fabricated
                                                – Legumes                    Metals
                                                – Tubers                 •   Rubber and
                                            •   Livestock &                  Plastics
                                                Fishing                  •   Other (~10
                                                                             other ISIC
                                                                             codes)

                                                                   Enabling sectors (43, 53)
                                                                   •   Transportation** (8, 3)
                                                                   •   Energy (1,1)
                                                                   •   Telecommunications (2,3)
                                                                   •   Social services (19, 42)
                                                                   •   Construction (4,4)
      * Not exhaustive
     ** Roads railroads, ports and airports
Source: Team analysis                                                                                                                              23
AT THE SECTOR LEVEL THE KEY SUB-SECTORS OF THE KENYAN
ECONOMY HAVE BEEN ASSESSED…
                                                    Focus of diagnostic
                                                                                      % of Kenyan                % of Kenyan formal            GDP Growth
                                                        % of Kenyan GDP1              exports2                   employment3                   2001-05 % (real)

Agriculture   Horticulture4                                            8.8                         23.3          0                                                     12.1
              Food Crops                                               8.6            0.3                            2.3                                        4.4
              Industrial Agriculture                           4.4                                        33.0                   10.7                           3.7
              Livestock & Fish                                3.7                       3.6                       1.0                                  0
Manu-         Food Processing, Beverages, Tobacco             3.3                         7.8                           4.7                                      5.3
              Refined petroleum products                  1.3                           4.5                      0                                -0.8
facturing
              Textiles, apparel and leather goods5        0.9                           3.8                         3.4                                    1.0
              Forest products                            0.6                           2.3                       1.0                            -3.6
              Chemicals                                  0.6                                    15.2             0.8                                        1.7
              Equipment                                  0.5                           2.2                       0.7                                          3.7
              Fabricated metals                          0.5                          0.7                        1.1                                        2.3
              Rubber and plastic products                0.4                          0                          0.6                                         2.5
              Publishing & Printing                      0.3                          0.6                        0.5                                       0.1
                                                                                      0                          0.5                           -4.9
              Furniture                                  0.2
                                                                                        2.4                      0.9                                                8.4
              Other manufacturing6                           3.0
                                                                                      0                                    6.8                                  3.5
 Services     Retail                                                           11.9   0                          0.2                                               7.1
              Real Estate7                                   3.0
                                                                                      0                            1.9                                         2.3
              Financial Services                              3.4                     0                             2.9                                            7.0
              Hotels and Restaurants                       1.5                        0                             2.7                                        1.5
              Business Services                              3.1                      0                          0                                         0
              Oil & Gas (Refinery)                       0                                             30.0      0.1                                           2.7
Extractive    Mining & Quarrying                          0.6                         0                          0.1                                       0
              Chemical & fertilizer mineral              0                            0                              3.3                                        4.1
 Enabling     Transport and storage                                      9.3          0                                                 18.2                    3.7
 Sectors      Education                                                8.1            0                                       7.9                 -0.2
              Public administration and defence                  5.0                  0                                 4.3                                    2.5
              Construction                                     4.4                    0                                   8.7                                    4.4
              Other Social Services                            4.1                    0                                5.8                                      3.3
              Health and social work                         2.8                      0                             3.1                                                  14.5
              Post and telecommunications                    2.7                      0                          0.6                                                   11.2
              Electricity supply                           1.4                        0                          0.6                                            4.3
              Water supply                                0.8


      1 Accounts for 91% of total economy                        91% GDP                    86% exports                          96% employment
      2 Accounts for 86% of total exports                       covered in                   covered in                             covered in
      3 Accounts for 96% of total formal employment             diagnostic                   diagnostic                             diagnostic
      4 Do not yet have horticulture employment data
      5 Textiles includes textile portion of EPZ for GDP but not in exports or formal employment
      6 Other manufacturing includes fragmented production of various mineral products, non-textile EPZ,         and small scale production
      7 Addressed a part of construction sector
Source: Central Bureau of Statistics                                                                                                                                      24
…AND THESE SUBSECTORS ARE BOTH EXPORT & DOMESTIC ORIENTED -
ALL NEEDED TO GROW & MODERNISE THE KENYAN ECONOMY

     Export-oriented                                   Domestic-oriented
     sectors                                           sectors




On the Export-oriented sectors:                  On Domestic Oriented Sectors:

•   The primary focus will be Growth of          •   The primary focus will be Growth of
    GDP, Improvement of trade balance,               GDP and job creation, Improvement
    Attracting FDI, technology and know-             in labour and investment productivity,
    how.                                             Migrating informal economy towards
                                                     formal economy
•   Example of selection criteria include
    absolute size and growth of exports,         •   Example of selection criteria include
    level of global competitiveness and              absolute size and growth of GDP
    ability to improve, and ability to attract       and jobs, level of productivity gaps
    FDI                                              and ability to improve, and impact on
                                                     informal economy

                                                                                              25
AN IN-DEPTH DIAGNOSTIC WAS CONDUCTED FOR EACH KEY (SUB)-
SECTOR
                        Agriculture is the pillar of the Kenyan economy
                        •     Largest sector overall with 24% of GDP (KSh 342 billion)
     1                  •     >5 million people earning incomes from this sector, >90% of which are „active‟ in the informal economy
           Size and     •     Contributes 65% of Kenya‟s exports (KS126 Billion) with 36% of total production exported
           growth
                                                        Manufacturing has of those involved of Kenya’s economy (~10%) since
                        Small holder farmers make up the vast majorityheld a steady sharein the agricultural sector, while the the 1970s
                        rest are estate or plantation•farmers, processors, of Kenya‟s GDP (KSh 148 bn) – same level of contribution over past 15 years
                                                                 Contributes 11% and marketers
     2                  •                                •       Formally spectrum of agriculture with various levels of formal employment; there are also ~1.3 million
                               Over 5 million small holders across theemploys ~250 000 people, about 13% of total organisation
                               1
                                        Size and
                               depending on particular crop small scale manufacturers that constitute the informal side of the industry
           Structure    •      Estatesgrowth             •       Contributes currently facing difficult (KS49 Billion) listed tea companies
                                         also range in size; largest estates 25% of Kenya‟s exports times (e.g., all with 33% of total production exported
                               either operating at a loss or barely breaking even in last 18 months)
                                                                                        •      The financial services sector plays a critical enabling role in the economy and has a lot of room
                        Orientation of current agricultural economy towards exports of unfinished raw materials and production
                                                                                               to further develop
                                                        Manufacturing is a fragmented sector
                        for domestic consumption of lower value produce                        –
                                                         •     1
                                                                                                      While financial services accounts for goods across 10+ plays a
                                                                 >2,000 manufacturing units with various ownership structures producingonly ~4% of GDP, itgeneral critical enabling role in the
     3                  •                                                                                high cost of inputs, limited extension
                               Productivity and value to small holder farmers minimized througheconomy by providing capital equivalent to ~40% of GDP
                                                                        Size
                                                                 categories and
                               2                                        growth of manufacturing dating back banking and capital market into momentum in past decade
                               services, low value placed on domestic oriented products, –      dependence on rain, and lack of visibility sectors are underdeveloped when compared to other
                                                                                                      Kenya‟s to World War II but with loss of
                                                         •       Long tradition
                               market Structure
                                        opportunities
           Challenges                                    •                                            countries
                                                                 50% of firms have less than 50 employees like Malaysia (e.g., domestic credit/GDP is ~40% for Kenya vs ~140% for Malaysia)
                        •                                                                             And full value coupled with high have of Kenya’s rapidly with current market capitalization of
                               Estate production focused on raw material export that fails–to capture while Kenya‟s •capital marketsis onebeen growingmajor economic pillars and is the largest contributor to foreign
                                                         •       12% of output produced by small scale informal manufacturers      Tourism
                                                                                                      ~KSh 800 bn or ~50% producers
                               production costs (e.g., labour, taxes, energy, infrastructure) making Kenya‟s commodityofexchange earnings,lot of is far underdeveloped when comparedsit at
                                                                                                                                    GDP, there is still a but room to further develop (e.g., Malaysia to other top tourist
                               unprofitable                                                           151% of GDP)                 destinations
                        •      Dependence on a few export markets (e.g., tea to Pakistan,1 horticulture to EU) manufacturing Tourism currently accounts for ~5low GDP and has beenand 17%
                                                                                               –        it difficult for                    to levels
                                                        Overall lack of competitiveness makesMoreover, savings and investment thrive in Kenya are relatively of (i.e., 11% savings mainly driven by beach and eco
                                                                                                                                   –
                                                                                                         Size and
                        •      Land ownership issues •                                                  increase in minimum wage not related to market forces, illegality of
                                                                 Unfriendly labour laws (e.g., annualinvestments vs ~30% in other countries like Malaysia)
                                                                                                                                          tourism
                                                                                                         growth
                        •      Environmental issues (soil acidity, rainfall patterns, deforestation) jeopardizing Kenya‟s long term viabilitycontributes significantly to employment and is the largest earner of foreign exchange
                                3                                employing casual labour, illegality of matching compensation to individual performance)
                                                                                                                                   –      Tourism
                               as agricultural producer•                                •      Banking is the largest sub-sector within Financial Services and is very concentrated, but also
                                                                 Unreliable and expensive energy (e.g., $0.15c/Kwh in Kenya vs $0.07c in China and $0.04c in South
                                                                                                                                          (~$800m in 2006)
                        •                                         small
                               What can be done to increaseAfrica) holder productivity? has many small and inefficient banks
                                        Challenges
           Key areas                                                                                                               –      While number of•tourists has been and retail trade is aper year, other the tourist destinations
                                                                                                                                                                     Wholesale increasing at ~13% major part of top economy, but largely informal
                               –       Consolidation (gets at 2
                                                         •      land ownership issues)         –      corporate) regimes (e.g., total tax rate ~75% of and Egypt accounting and retail assets and
                                                                 Disjointed taxation (import, export, The banking industry consists of ~40 banks withgross – 10attract ~4-6xfor 70% of tradethan Kenyafor 12% of formal GDP and 7% of formal employment but up
           to explore                                                                                                                     like South Africa the top  profits)Wholesale more tourists accounts (e.g., 1.3m in Kenya vs 8.2m
                               –                                 to afford better
                                       Access to cheap •credit Heavy Structureinputs                  foreign banks playing a key role (5 out of the7.5m10 banks are ~30% of GDP and ~50% of employment
     4
           during
                                                                         regulation                                                       in Egypt and top in South Africa)  to foreign)
                               –       Improved extension services Over 1 300 business related The bottom Kenya
                                                                 –                             –       licenses in ~30 banks are  1 relatively inefficient with tourist in Kenya is alsoassets lower thanvs 3.5%
                                                                                                                                   –                                         ~97% of on much of ~1.8% other destinations and has been
                                                                                                                                          Average spend per an–average returnemployment and ~70% of the value in the sector is informal
           deep dive           –                                                                                                          Size
                                                                                                       producers to banks and investment and
                                       Better understanding of market to transition from peasant for the top 10 entrepreneurs
                                                                 –      Complex (and sometimes overlapping) business                             registration
                        •                                                                                                                 declining                  –       The formal (e.g., tourists spend is ~10x more productive than the informal segments, making
                                                                                                                                          growth at ~2% over the past few years segment of the sector~70% more in Egypt)
                               What is driving the poor• economic performanceandagricultural firms? are hard to compete with banks domestic market
                                                                 Cheap (in quality of price) –        Moreover, Kenya has far more in the than other countries like Morocco, South Africa and Nigeria attractive
                                                                                               imports that                                                                  organized and formal retail much more
                               –       Costs or revenues?        –                                    (i.e., ~40 vs        •
                                                                        Second hand goods (primarily clothing) 21, 33 and 25 respectively)
                                                                                                                                  The tourism industry structure is made up of hundreds of firms with a primary focus on the
                               –       Government or internal–inefficiencies?           •      5 major challenges
                                                                        „Smuggled‟ or informally imported goods (CPG and processed foods) opposed toThe wholesale and retail sector is extremely fragmented with thousands of small informal
                                                                                                                                  mass market as             •        the high end
                        •                                •                                     – management
                                                                                  to other sectors
                               In what ways can stronger linkages be made environmental 2 (e.g., food and beverages, –
                                                                 Rising costs of                                                   tourism, difficult to compete especially regionally – as well as raise (fragmented) and
                                                                                                      Scale: Small bank sizes making itbio- are 3 types of players – Airlines (concentrated), hotels chains across all tour operators categories
                                                                                                                                          There                      players and very inefficient supply                             major product
                               fuels) to provide additional income opportunities for domestic producers? capital locally
                                                         •     3 of formal employees HIV positiveStructure
                                                                 7%                                   significant
                                                                                                                                  2       (fragmented)               –       While a few•national retailers have emerged (~20 stores each),small and nascent market is economy, but there is an
                                                                                                                                                                                               The BPO sector in Kenya is an extremely the majority of the part of the
                        •                                                                      –
                               How can Kenya strategically protect (and expand) their export markets?                                      banks to get hotels in on judicial 4 up of (e.g., opportunitycountries like South Africafast growing and vendors and kiosks)
                                                                                                                                                                              are and stars2 of to repossess micro small a very has
                                                                                                      Legal environment: Difficult for Only ~18% ofresolution Kenyamadeissues5millions yrshawkers to gain share of enterprises (market-based large global BPO market
                                                                                                                                  –                                                             while other and
                                                                        Challenges
                        •      What strategic opportunities for value addition are there?             collateral)                         Structure
                                                                                                                                                                                               –       Kenya‟s BPO sector majority of the value still of in urban ~450
                                                                                                                                          ~38% of their hotels as–4 and While ~70% of retailers are in rural areas, theonly accounts for ~0.01% liesGDP with areas seats and ~800 agents
                                                                                                                                                                              5 stars
                                                         •                                            Administrative for Kenya–– howVarious organisations 1–
                                                                                                                                            big can up bank
                                                                 What is the size of the manufacturing opportunity barriers: Difficult to open it get? accounts (eg, min account balances too high)
                                                                                               –                                                                    have been created to are –
                                        Key areas        •                                                                                                                                             higher maintain and build which is is expected to grow informality
                                                                                                                                                                                                much However, the global prices,facilities, one
                                                                                                                                                                             Formal prices promote tourism,than informal offshore market train of the drivers of from $11bn in 2005 to ~$100bn by 2008
                                                                                                                                                                            Size
                                                                 How to improve Kenya‟s manufacturing competitiveness infrastructure makes it difficult to penetrateand serve the low end
                                                                                               –      Infrastructure: Lack of                                                       and
                                                                                                                                          talent and preserve wildlife growth chains have several small producers who supply small retailersto gain a especially in food
                                                                                                                                                                     –       Supply                    presenting a significant opportunity for Kenya directly, meaningful foothold
                                        to explore               –       Which categories can Kenya truly be competitive in – domestic and export?
         Agri                  4        during                   –       How to improve• key drivers, e.g., energydeep dive
                                                                                               Priority areas for     costs, labour costs, tax regime, regulate?             categories        –       Africa as a whole has only managed to capture only ~1-2% of the offshore BPO opportunity
                                                                                                                                                                                                                              •      The extractive industry is a very small part of Kenya’s economy and despite future
                                                                 How can Kenya encourage more domestic Understanding how to strengthen the banking–sectorOrganized retail results in additional costs and needs to be compared to additional revenues and
                                                                                                                           •                                                                           (~500,000 seats in total globally)
                                        deep dive        •              Key areas              –                                  Challenges
                                                                                                      Overall: and foreign investment in manufacturing – both within andconsolidation) and Tier I players will be unable to meet all the demand (total of ~2m workers by 2008 and gap be200-
                                                                                                                                                                               (eg,            –        balance                      growth potential, the future size of the sector is expected to of small
                                                                                                                                                                             other benefits
                                                                 outside of Nairobi?
                                                                        to explore                    between stronger sector –           Greater credit especially for low income and rural (e.g., Nigeria
                                                                                                                                    and access to security in key tourist areas
                                                         •     4        during                   3    case study)                 –       Poor quality or non-existent roads between existing and potential tourist sites – opportunity for tier II players like Kenya
                                                                 How can Kenya attract strategic partnerships with competitive international firms?                                                  1
                                                                                                                                                                                                       500k workers), presenting an          The extractive industry currently accounts for ~0.5% of GDP, has been growing at
                                                                                                                                                                                                                                             ~3% per year and despite projected strong future growth, is expected to be relatively
                                                                        deep dive              –                                  –         penetration and deposits (e.g., lessons learned from assets” (beaches and wildlife) small in size in the near term
                                                                                                      Retail: Increasing bank accountEnsure top management and preservation of “tourism Equity Bank)
                                                                                                         Challenges
                                                                                                                                                                                                              Size and
                               Manuf                                                           –      Microfinance: Lending to              and SMEs         •
                                                                                                                                  –MSEsLack of bed (e.g., best Urban retailers face veryglobally) growth currently consists of with the lack of real estate clear leader at 250 seats and
                                                                                                                                                        capacity practices in micro •          Kenya’s BPO sector
                                                                                                                                                                                         finance different challenges than rural retailers ~450 seats with KenCall the
                                                                                                                                                                                                                                     –       The industry is mainly made up of a few basic minerals with Soda Ash and Flourspar
                                                                                               –                                                                     topping (eg, other successful country with 10-20 seats each
                                                                                                      Corporate: Increasing long term financing and larger loan sizesthe list                  several others                                accounting for the majority of the value as well as other related commodities such as
                                                                                                      cases)                                                        2–                         –         urban stands are the lack of BPO leader with 250 of and unreliable
                                                                                                                                                                             The major challenges forKenCallretailers out as Kenya‟s real estate, high cost seats out of a market of ~450 seats
                                                                                                                                  3                                                                                                          gold, limestone, titanium, oil & gas and coal
                                                                                               –      Capitalareas         •      Priority Areas for Deep Dive              Structure well well–as bond market
                                                                                                                                                                             power as
                                                                                                         Key markets: Growing the capital market, developing VC/PE market as as interference from authorities of the lowest cost competitors today (e.g., ~$17 000/seatthe Kenya vs ~$17 000 exports of
                                                                                                                                                                                                       Overall, Kenya is one         –       The industry is largely domestic oriented with in exception of strong
                                                                                                                                  –       Challenges
                                                                                                      (capital markets maybe potential solution to of tourists:–Segment customers, understand needs by segment, determine how to opportunity to become even more competitive by reducing
                                                                                                                                          Increasing # LT financing problem)                             rural retailers are lack of infrastructure and
                                                                                                                                                                             The major challenges forin India, ~$30 000 in South Africa) with an poor access to water
                                                                                                         to explore
                                                                                                                                                                                                    of telecom
                                                                                                                                                                                                       other successful tourist destinations
                                                                                                                                          attract various segments and develop case studies eliminating costs                                                  •
                                                                                                                                                                                                                                             limestone (~30–40%) and gold (~80–90%)
                                                                                                                                                                                                                                                                      Production is presently nil, with significant growth potential
                                                                                               – 4    Cross-cutting challenges: Reducing cost of doing business by improving judiciary,
                                                                                                         during
                                                                                                                                  –       Increasing length
                                                                                                      admin barriers and building critical infrastructure    • of stay: Determinefor deep dive – focusof stay, potential to increase traffic to
                                                                                                                                                                     5 key areas key drivers to length on addressing informality                                      –       Two plants capable of producing bio-ethanol, but lack of market has led them to produce
                                                                                                         deep dive                                                   –       new studies: Mt. Kenya, Nairobi, beaches in 3 major areas with informality problem (e.g.,
                                                                                                                                          existing sites and potential of Casesites (i.e.,Understand lessons learned from otherLamu)
                                                                                                                                          Key areas                                      •     Kenya faces challenges south of         1 countries                            spirit alcohol and chemicals instead; total capacity of 10 million litres small by international
                                                                                                                                  –       to explore
                                                                                                                                                                             Poland, India)
                                                                                                                                                                                               –
                                                                                                                                                                                                                              •      A few firms and
                                                                                                                                                                                                                                                Size                          standards
                                                                                                                                                                                                        opportunities to increase spend (e.g., makeup the beyond of the cost and penetrating key
                                                                                                                                          Increasing average spend/tourist: Identify and assess Front end: Developing a distinctive value propositionmajority just lowindustry, however there are ~200 licenses that
                                                                                                                                                                     –                                                                Kenya growth
                                                                                                                                                                             Customer segmentation: Segment customers by income and given out needs – each group      of
                                                                                                                                          higher end items and pricing as well as how to leverage all the things that make have been understand for various exploration activitiesprices, a single 100 million gallon plant could add KSh 3 billion to GDP
                                                             Finance                                                              4       during                    3
                                                                                                                                                                     –       Product marathon Identify
                                                                                                                                                                                                       geographic markets and sectors great
                                                                                                                                                                                                                                     –                      formalize
                                                                                                                                                                                                                                                                              With favourable fuel
                                                                                                                                                                                                     2 Infrastructure: Reducing telecom be mining industry is verytotal operating with Magadi Soda and
                                                                                                                                          like coffee and tea tours, international categories:museum)which product categories will Theeasiest to are ~30% (e.g., lowest (about 0.2% of potential ofKenya Fluorspar
                                                                                                                                                                                                                                                                            concentrated
                                                                                                                                                                                                                                                                              per year
                                                                                                                                          deep dive                                            –
                                                                                                                                                                            Challenges premium) and key barriers to formalizing these categories ~70–80%of
                                                                                                                                                                                                                                               costs, which                                 costs (e.g., GDP)
                                                                                                                                                                             formal price                     Structure                      accounting for              with a number of smaller firms mining various other minerals
                                                                                                                                                                                                       reducing it to ~10% of costs)
                                                                                                                                                                     –
                                                                                             Tourism                                                                         Supply chain: Understand supply chains across key product categories and impact to supply
                                                                                                                                                                                               –
                                                                                                                                                                                                                                             such as gold
                                                                                                                                                                                                       Back end: Focussing on the right incentives (e.g.,•infrastructure, land, training) to encourage capability and 1,000s of potential bio-stock producers
                                                                                                                                                                             chains by product category from formalizing             –                                Two small plants with bio-ethanol titanium and coal are
                                                                                                                                                                                                                                             Other related commodity industries like limestone, oil & gas,
                                                                                                                                                                                                       development of the BPO sector in Kenya                         –
                                                                                                                                                                     –                                                                                                        Two plants
                                                                                                                                                                             Formats: Determine range of format options and which formats make sense for which locations are Spectre International (private) and Agrochemicals and Food Company
                                                                                                                                                                                                                                             also highly concentrated
                                                                                                                                                                                                                                       2                                      (parastatal)
                                                                                                                                                                            Key areas    •     Key areas to explore           •      Greatest challenges
                                                                                                                                                                                                                                                Structure             –       Potential bio-stock inputs include:
                                                                                                                                 Retail                             4
                                                                                                                                                                            to explore         –       Front end: Develop Kenya‟s distinctiveof long proposition, identify keySugar cane forcapital making it difficult to pursue
                                                                                                                                                                                                                                     –       Lack    value term financing as• well as high cost ofprocesses to focus
                                                                                                                                                                                                                                                                                       sectors and bio-ethanol currently being produced by 200,000 smallholders on
                                                                                                                                                                                                     3 on, develop list of potential clients and exploration projects Kenya as about 145,000 ha. destination
                                                                                                                                                                                                                                             large best way to market                 an attractive BPO
                                                                                                                                                                            during
                                                                                                                                                                            deep dive                  (e.g., Challenges role of –
                                                                                                                                                                                                              case studies,           new industry association)drives up the cost of exploration activities (e.g., high energy and
                                                                                                                                                                                                                                             Poor infrastructure
                                                                                                                                                                                                                                                                              •       Wheat, maize, and cotton seed also potential bio-stocks, but more expensive to
                                                                                                                                                                                               –       Infrastructure: Understand current cost structure and quality, assess competitiveness, understand
                                                                                                                                                                                                                                             transport costs)
                                                                                                                                                                                                                                                                                      process
                                                                                                                                                                                                       infrastructure needed and –           Land what infrastructure is being developed
                                                                                                                                                                                                                                      compare to issues and unclear exploration rights
                                                                                                                                                                                               –       Back end: Assess quality and depth of labour pools by location• and decide on is currently being piloted in semi-arid areas by about 1,000 farmers as
                                                                                                                                                                                                                                                                                      Jatropha which government
                                                                                                                                                                                                       incentives are best to develop the sector (e.g., case studies)                 potential feed stock for bio-diesel

                                                                                                                                                                                                          Key areas      •      Potential priority areas going forward
                                                                                                                                                                                                          to explore            –                      •     Lack of government ash, flourspar and limestone
                                                                                                                                                                                                                                      Exports of nonferrous minerals such as soda bio-fuels policy and shortage of feed stock availability likely to be
                                                                                                                                                                   BPO                            4       during                –     High value added mining (e.g., value addition to gemstones, manufacturing around
                                                                                                                                                                                                                                      minerals)
                                                                                                                                                                                                                                                             limiting factors
                                                                                                                                                                                                          deep dive               3                          –      To make bio-fuel production attractive for domestic market, government needs to mandate
                                                                                                                                                                                                                                –                                   a 5 (e.g., titanium and component in petrol as well as provide subsidies to producers (can
                                                                                                                                                                                                                                      Large scale mineral development or 10% bio-ethanol metals)
                                                                                                                                                                                                                                        Challenges                  be in the form of tax waivers) to ensure competitiveness
                                                                                                                                                                                                                                                                 –       Majority of feed stock would need to come from new agricultural production so as not to
                                                                                                                                                                                                  Mining                                                                 undermine internal food security




                                                                                                                                                                                                                                         Key areas
                                                                                                                                                                                                                                                          •      What is current government appetite for creating necessary enabling environment?
                                                                                                                                                                                                                                         to explore       •      How can bio-fuels fit into an overarching domestic energy strategy?
                                                                                                                                                                                                                                  4      during           •      What oil and/or energy companies would be interested in investing in a bio-fuels plant in Kenya?
                                                                                                                                                                                                                                         deep dive        •      What opportunities exist for new production of potential feed stock? (e.g., additional sugar cane
                                                                                                                                                                                                                                                                 production in the Tana River delta)



                                                                                                                                                                                                                              Biofuels


Source: Team analysis                                                                                                                                                                                                                                                                                                                                                            26
EXAMPLE: HIGH-LEVEL DIAGNOSTIC OF THE AGRICULTURAL SECTOR
                            Agriculture is the pillar of the Kenyan economy
           Size and         • Largest sector overall with 24% of GDP (KSh 342 billion)
   1       growth           • >5 million people earning incomes from this sector, >90% of which are „active‟ in the informal economy
                            • Contributes 65% of Kenya‟s exports (KS126 Billion) with 36% of total production exported

                            Small holder farmers make up the vast majority of those involved in the agricultural sector, while the
                            rest are estate or plantation farmers, processors, and marketers
   2       Structure        • Over 5 million small holders across the spectrum of agriculture with various levels of organisation depending
                              on particular crop
                            • Estates also range in size; largest estates currently facing difficult times (e.g., all listed tea companies either
                              operating at a loss or barely breaking even in last 18 months)
                            Orientation of current agricultural economy towards exports of unfinished raw materials and production
                            for domestic consumption of lower value produce
   3       Challenges       • Productivity and value to small holder farmers minimized through high cost of inputs, limited extension services,
                              low value placed on domestic oriented products, dependence on rain, and lack of visibility into market
                              opportunities
                            • Estate production focused on raw material export that fails to capture full value coupled with high production
                              costs (e.g., labour, taxes, energy, infrastructure) making Kenya‟s commodity producers unprofitable
                            • Dependence on a few export markets (e.g., tea to Pakistan, horticulture to EU)
                            • Land ownership issues
                            • Environmental issues (soil acidity, rainfall patterns, deforestation) jeopardizing Kenya‟s long term viability as
                              agricultural producer
                            • What can be done to increase small holder productivity?
           Key areas            – Consolidation (gets at land ownership issues)
           to explore           – Access to cheap credit to afford better inputs
   4
           during               – Improved extension services
           deep dive            – Better understanding of market to transition from peasant producers to entrepreneurs
                            •   What is driving the poor economic performance of agricultural firms?
                                – Costs or revenues?
                                – Government or internal inefficiencies?
                            •   In what ways can stronger linkages be made to other sectors (e.g., food and beverages, tourism, bio-fuels) to
                                provide additional income opportunities for domestic producers?
                            •   How can Kenya strategically protect (and expand) their export markets?
                            •   What strategic opportunities for value addition are there?
Source: Central Bureau of Statistics; Economic Survey 2006; Ministry of Agriculture                                                             27
TWO KEY DIMENSIONS WERE CONSIDERED IN SELECTING FOCUS
VERTICAL SUB-SECTORS FOR KENYA…
                                                                         Validated with technical committee
                                                                         Description

  Overall approach                                                       • Assessed based on diagnosing sub-
                                                        Attractiveness    sectors in order to understand
                                                                          – Current size and growth
                                 Bubble size                                potential (e.g. GDP, Jobs,
                                 indicating                                 employment)
                                                                          – Interdependencies with other
                                 current size of                            sectors (including informal sector)
                                 the sector                               – Level of competitiveness/
     Attractiveness




                                                                            productivity and ability to improve
                                                                          – Momentum in each sub-sector
                                                                            (e.g. ongoing projects etc)



                                                                         • Assessed based on diagnosing sub-
       1                                                Feasibility       sectors in order to understand
                                                                          – Potential of public policy to
                                                                            impact sub-sector
                                                                          – Level of resources required
                        2 Feasibility                                     – Number of stakeholders involved
                                                                          – Requirement for external
                                                                            partners
                                                                          – Complexity and potential risks of
  Given the level of complexity these two dimensions,                       intervention
  assessment relied on a combination of both                              – Existence of local know-how,
  quantitative analysis and qualitative assessment                          technology and capital vs need
                                                                            for external partners


Source: Team analysis                                                                                       28
…LEADING TO 6 PRIORITY VERTICAL SECTORS BEING                                                                 FOR DISCUSSION
IDENTIFIED AS CRITICAL FOCUS AREAS FOR KENYA                                                                  Current size of GDP
                                                                                                              Proposed deep
                                                                                                              dive sectors for
         +                                                                                                    phase 2
                                               Retail

                                                                           Financial
                                                                                              Tourism         Key message
                                                                           services
                                                                                                              • 6 key sectors
                                                                   BPO                                          proposed for
                                                                                                                deep dive
                                                                                              Manufact-         analysis in
                                                                                    Agri-     uring             phase 2 to
  1                                                                                culture                      develop high
                                                                                                                level strategies
 Attractive-
                                                                                                                for each of
 ness
                                             Petroleum                                                          them

                                                                                                              • Implications on
                                 Bio-fuels                                                                      enabling
                        Mining                                                                                  sectors (e.g.,
                                                          Although not a priority in the
                                                                                                                energy,
                                                        short term, these and other non-                        telecoms,
                                                        prioritised (sub)-sectors are still                     education) also
                                                            important for the Kenyan
                                                                     economy
                                                                                                                be analysed




                                                                                                          +
                                                    2 Feasibility

Source: Team analysis                                                                                                           29
…AND UNDERSTANDING HOW KEY ENABLERS NEED TO BE IMPROVED
AS KENYA’S CURRENT COMPETITIVENESS NEEDS TO BE STRENGTHENED
            Kenya’s weaknesses                                                                                               Kenya’s strengths
            compared to these                                                                                                compared to these
            countries                                                                                                +       countries
                                                                                                F1.1
                                                   Cost of labour             F1.2                          Literacy level
                                                                                              F1.3
 F1   Labour                                                                                         F1.4
                                 FDI as % of GDP
                                                                                               F2.1                                 • Kenya is generally, not
 F2   Capital                                                 F2.4                            F2.2                                    more competitive than
                                                                                              F2.3
                                                 Cost of diesel                                                                       countries with similar level
 F3   Energy                                                                                    F3.3
                                                                                                                                      of development
                                           F3.1                          F3.2                                                         – It is typically at par or
                                                                                               F4.1
                                                 Cost of electricity
                                                                                                                                         less competitive across
                                                                                       F4.2
 F4   Agricultural resources                                                                                                             the various factors
                                                                                F4.3
                                            Cost of ADSL
 F5   Information and                                                                    F5.1
                                                                                           F5.3 Airport traffic
                                                                                                                                    • Key strengths include high
      telecommunications                                          F5.4        F5.2                                                    literacy levels and high
                                                                                                                                      utilisation of airport
                                                    Roads                              F6.2        F6.4
 F6   Logistics                                                        F6.1                                                           infrastructure
                                                                                       F6.3
                                                                                              F7.1                                  • Primary weaknesses
 F7   Tax                                                                                   F7.2                                      include:
                               Postal services                                                                                        – Higher labour, electricity,
      General Services                                    F8.1                                                                           and communications
 F8
                                                                                     F8.2                                                costs
                                 Ease of doing business                                                                               – Poorer road
 F9   Business Climate                                                 F9.1
                                                                                                                                         infrastructure
                                                                                                F9.2                                  – Business climate linked
                                                                                                                                         to ease of doing
F10 Government                                                         F10.1                                                             business and
                                   Constraints to business                                                                               government


                                                  -0.6       -0.4      -0.2       Peer   +0.2               +0.4     +0.6
                                                                                 Average
Source: Team analysis                                                                                                                                            30
PHASE II “DEEP DIVES’ ARE NOW FOCUSSED ON DEVELOPING HIGH
LEVEL STRATEGIES FOR THESE PRIORITY SECTORS

     Areas               Activities                                       End products

       Size potential    • Perform gap analysis for „deep-dive‟ sectors – • Identify key
       to unlock          What is the overall size of the opportunity?      levers, impact, an
       sector growth                                                        d priority actions
                         • Formulate strategy in „deep-dive‟ sectors in     for „deep-dive‟
                          order to close gaps (e.g., key levers, impact     sectors
                          of each lever, priority actions) based on
                          international experience and best practices

      Strategy and       • Perform in-depth analysis of selected quick    • Robust strategy
      plans to deliver    win projects to identify actions required to      and concrete
      quick wins          accelerate projects                               plans to
                                                                            successfully
                         • Develop robust strategy and concrete             deliver on quick
                          implementation plan to ensure successful          win projects
                          delivery of project in the short term

                         • Align all key stakeholders behind
                          recommended strategy and plan



Source: Team analysis                                                                            31
THE NEXT PHASE WILL FOCUS ON DEVELOPING A ROBUST
MASTERPLAN TO ENSURE SUCCESSFUL IMPLEMENTATION
Key next steps       Activities

                     • Develop a detailed master project plan, including
   Master plan and    activity list, roles and responsibilities, and       • Robust Master plan
   management         milestones
   approach


                     • Create tools to track progress of implementation,   • Monitor
   Monitoring and      with initial focus on quick win projects             implementation
   implementation    • Monitor results versus targets for quick win
   dashboard           projects

                     • Analyse required human and financial resources      • Deploy required skills
   Resources           to deliver on the vision
                                                                            and funding
                     • Develop options to source required resources


                     • Ensure alignment of all key stakeholders behind     • Communicate
   Communication       strategy and action plans                            strategy and plans
                     • Launch communication effort


                     • Provide in-depth support to champions of selected
   Launch of quick     quick win projects                                  • Drive quick win
   win projects                                                             projects
                                                                                                 32
God Bless His Nation

       Kenya



                       33

								
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