the roadmap to kenya’s...
TRANSCRIPT
The Roadmap to Kenya’s Industrialization
Ministry of Industrialization & Enterprise Development
We must realise Vision 2030 and fulfill the Jubilee Manifesto
We will do this by:
• Growing our GDP for the next 16 years by $4-6bn per year
• Increasing our manufacturing base from 11% of GDP to
20% of GDP
• Addressing 3 critical issues:
– Increasing foreign investment: regional neighbors are
attracting 2-3x more than we are
– Reducing the cost of doing business: through targeted
investments in energy and transport
– Improving the ease of doing business and reducing
corruption
• Investing in and developing specific sectors where we have
a natural competitive advantage
Kenya will reach
key Vision 2030
targets… 9 years
ahead of schedule!Due to a focus on specific sectors
of the economy, and bold
industrialisation measures put in
place by the Kenyan government
back in 2014, Kenya will reach the
Vision 2030 GDP targets almost
nine years ahead of schedule. In
announcing this amazing result, the
President congratulated both public
and private sector organisations for
31 January, 2020
Headline in 2020 if we
move fast now!
Headline in 2020 if we
move fast now!
2
Total GDP, USD Billions
211192
175159
144131
119109
9990
8274676156514642
+10% p.a.
282726142013 252423 203022212019181716 2915
We must grow GDP by $4-6 billion per year for the
next 16 years to hit vision 2030
$42
$211
3
We must build a stronger industrialized economy
Manufacturing contribution to GDP
36
28
32
15
17
11
South Korea
Morocco
Egypt
Kenya
Thailand
Malaysia
81
74
92
68
50
11
% of GDP % of exports
4
It can be done: Morocco more than doubled its rate of
GDP growth by focusing on key sectors
Morocco increased its rate of growth by 2.5x By focusing on key sectors and designing
supporting policies and enablers
09
58
08
55
07
52
06
51
05
47
04
46
03
44
02
41
01
40
0
37
99
36
98
36
97
34
96
34
+1.8%
60+4.9%
10
• Focused on sectors where it had a competitive
advantage: tourism, agriculture, autoparts,
textiles
• Provided tax breaks and investment incentives
• Created SEZ clusters to provide more business
friendly environment for FDI
• Created vocational training institutes to produce
talent for target sectors
• Liberalized trade: FTAs with EU, US, Turkey,
Mid East
• Built new highways to facilitate internal trade
and ports to facilitate external trade
GDP, $ Billion
5
However, we must address 3 critical issues
Kenya Rwanda
Ease of doing business
129 32
Paying taxes
166 22
Protecting investors
98 22
Corruption index (0-most, 100-
least)
27 53
Enforcing contracts
151 40
We must address our weak
competitiveness rankings
We must dramatically
increase FDI inflows
We must reduce the cost of doing
business
1.0
+430%
Zambia 10.3
Uganda 5.3
Tanzania 4.6
Ethiopia 2.0
Rwanda 1.7
Kenya
1 2 3
Avg. industrial tariff, $/kwh, 2013
Ethiopia 5.4
RSA 5.7
Tanzania 7.6
Kenya 17.3
% GDP, 2011
2,760
1,940
1,565
2,350
Avg. import cost, $ per container1
1 Includes all costs associated with procedures required to import (e.g., documents, admin, clearance, customs, handling, transport)
2014
At same time, we must recognize the relative strengths of
neighboring countries as we are “competing” for investments
Ethiopia
• High FDI inflow
($970m annually)
due to consistent
economic growth of
9-10%
• Low cost of business
− Energy: $0.03
vs.0.17/kwh
− Labor
• Large infrastructure
investments at 26%
of GDP, 70% budget
on non-recurrent
Rwanda
• Strong GDP growth
of above 8%
• Strong and well
functioning
institutions, low
corruption &
effective security
• Easiest place to do
business in Africa
(32/185)
• Strong education
system
• Attractive
corporate taxation
Tanzania
• Strong economic
growth; average 7%
over last decade
• Significant FDI
($1.7bn vs. Kenya’s
$260-400m)
• Manufacturing
exports grown from
7% to 20% of total
exports
• 5x expansion of
exports
• SEZ being
established in Tanga
Nigeria
• 2nd largest
Economy in Africa
$269bn GDP
• Largest FDI recipient
($7bn in 2012)
• Favorable
investment laws
e.g., low taxes, tax
relief, repatriation
etc.
• Access to multiple
ports in the Country
• Highest number of
qualified
professionals
SOURCE: United Nations Conference on Trade and Development, World Investment Report 2013 7
Over the next 5-10 years, we must take advantage of key
trends to drive industrialization
$100b+ planned infrastructure investment in East
Africa provides opportunity for local businesses
World food demand will increase by 70% and Africa
has 60% of world’s remaining arable land
Resource discoveries in Oil, Natural Gas, Coal,
Minerals can drive the creation of local businesses
Established ICT infrastructure and thriving
ecosystem creating high-tech entrepreneurs
International trade opportunities combined with
rising costs in China is shifting jobs to Africa
8
Key sectors
Enablers Improve the ease of doing business
Support sectors for growth: skills, infrastructure (SEZ, FTZ, etc), and finance
Unlock the potential of SMEs
Job creation and industrialisation strategy
▪ Increase manufacturing to 20% of GDP
▪ Create 5m additional jobs
▪ Increase FDI 5x
▪ Ease of business to top 20 by 2020
Develop a compelling FDI attraction plan
Grow critical
sectors where we
have scale
▪Tea
▪Flowers
▪Coffee
▪Horticulture
Leverage natural
advantages to create
competitive sectors
▪Textiles and cotton
▪ Leather
▪Agro-processing
▪Beef
▪Fishing
Build local
industry to
support resource
and infrastructure
investments
▪Oil
▪Minerals
▪ Infrastructure
(e.g. steel)
▪Geothermal
Transform
government
industry
▪Pan Paper Mills
▪Sugar
▪Coffee
▪Coconut/ cashew
▪ Livestock
▪Pyrethrum
Enhance non-
industrial job
creating sectors
▪ ICT
▪Retail and
wholesale trade
▪Tourism
1 2 3 4 5
6
Expected
outcomes
7
8
9
Build a strong government delivery capability10
We will apply a broad industrialisation and job creation strategy
9
Main products exported by Kenya
%, 100= USD billion
0
Other
Oil products6
37
4.6
2012
Vegetables
33
26
15
6
2006
3.5
42
7
53
3
Flowers
Tea & coffee
Tobacco
Salt & cement
Apparel3
23
10
6
2001
1.5
400
43
36
10
7
SOURCE: Trademap, World Bank
Employment
~4.5 million employed
now, can grow
exponentially
Interventions
1. Determine obstacles
to growth (finance,
logistics, regulations)
2. Focus sector
strategies to
debottleneck
obstacles to growth
3. Link sectors to
enabling efforts (e.g.
SEZ, FTZ)
We must continue to enhance competitiveness of our tea, coffee,
and horticulture sectors as they account for nearly 50% of exports
FOCUS SECTORS: GROW CRITICAL SECTORS WHERE WE HAVE SCALE
1
10
Opportunity Key challenges
• Displace imports: Local demand of
28m units, only 4m filled locally
• $60 billion global market
• 80% of Kenyan land ideal for cattle
• Low productivity - hides raised as by-product
• 85% of skins damaged/lost during slaughter
• Poor logistics and low tannery capacity
• Shortages of trained personnel and capability
• 90% of land for cotton unused
• Under-utilised manufacturing capacity
• Duty free access to U.S. ($93 billion)
and EU ($228b) thru AGOA and EPA
• International companies actively
diversifying from the East
• Low productivity and quality, of cotton
• Outdated processing capacity
• High cost of energy , labor, and logistics (for
export)
• Kenyan fishery potential
estimated at 150k MTs while
only producing 7k MT
• Lack of infrastructure and modern fishing
vessels
• Lack of commercial processing capability
• Lack of skilled expertise
• Large potential export market
• 80% of land ideal for cattle
• Lack of disease free zones
• Low productivity, poor quality feed, lack of
water
• Lack of controlled processing facilities
Impact
• GDP from 4-7%
of agriculture
• Employment of
675K in 3 years
from 148k
• GDP ~$630m
• ~400k jobs in
5 years
• TBD
• TBD
Leather
Textiles
Beef
Fishing
We will create competitive sectors by leveraging opportunities
FOCUS SECTORS: EXAMPLES OF IMPACT
A
B
D
E
• Global food demand will grow 70%
• Duty free access (EAC, AGOA, EU)
• Domestic consumption to double by
2020
• Low productivity of small holder farmers,
poor quality, and significant wastage
• High cost transport infrastructure
• Lack of processing capacity
• 200k jobs over
2 yearsAgro-processingC
2
11
Cotton and textiles has potential to drive growth
Large market opportunity Kenya’s potential is currently under utilized
� ~385,000 ha of land suitable for cotton (900,000 bales)
– only 10% harvested
� 22 Ginneries operating at 25%
� 52 textile mills at 53% utilisation
� 110 large scale garment manufacturers
SOURCE: FAO, Cotton Development Authority, Team analysis
1 Based on maximum production volume at 2010 prices (KES 48/kg) 2 Decrease due to significant price drop disincentivising farmers
� National lint demand 111,000 MT of seed
cotton – local production only at 11,000 MT
� Lack of local supply supplemented with
imports from Uganda and Tanzania
� Domestic garment demand largely supplied
by cheap second hand used clothes
Large domestic
market
▪ GDP contribution of 7% from current 4%
▪ Employment of ~675k in 3 years from 148k
Overall impact
FOCUS SECTOR EXAMPLE: COTTON
Chad
132
United States
503
217
China
84
276267
Colombia
68 206
293
ParaguayAustralia
167
South AfricaTurkey
Tanzania
75
68
BrazilKenya
86
Pakistan
94
144
ArgentinaNigeria
SudanCameroon
Egypt
234
India
56
Production costs incl. subsidies
State subsidies
USD ct per lb of produced lint 1, 2010/20112
Cotton producers cost curve
� Duty free access to U.S. ($93 billion) and EU
($228b) thru AGOA and EPA
� International companies actively diversifying
from the East
� 3 potential garment market segments with
differing levels of opportunity:
- Basics (high automation, low cost)
- Seasonal (high quality, low cost)
- Fast fashion (high quality, short supply
chain)
Large
International
market
Kenya has a relatively strong position on the cost curve1
Significant land is suitable for cotton2
Processing capacity is already available3
A
12
Garment manufacture
Basics, seasonal, fast fashion
Cotton production Textile manufacture
Cotton
farmingGinning2 Spinning
Weaving
& knitting
Dyeing
& finishingDistribution
• Lack of appropriate seeds
and inputs, i.e. fertilizer
• Lack of farmer expertise in
water management, soil
management, etc.
• Poor access to capital
• Limited ability or incentive
for producers to
differentiate by quality
• Shortage of sufficient quality cotton
• High cost of energy
• Non-standard operating procedures
• Imported machinery, spare parts expensive
• Accessories and other imported inputs slow
and expensive to source
• Difficulty accessing finance
• Basics: Insufficient
automation in garment
production to enable high
volume processing
• Seasonal: inferior technical
capabilities to meet
international buyer
expectations
• Fast fashion: Slow and
expensive logistics/ transport
to reach end markets;
difficulty in accessing key
inputs (e.g. buttons) due to
high tariffs and customs
delays
Challenges across the value chain
Garment
production
FOCUS SECTOR EXAMPLE: COTTON
A
13
Interventions can unlock the cotton potential in Kenya
▪ Public-private partnerships for seed and fertilizer production, distribution would greatly
increase the quality and quantity of cotton available in Kenya
▪ Nucleus out-grower schemes would further increase small-holder productivities and
livelihoods by providing access to improved inputs and training in return for guaranteed
off-take
▪ Best-in-class agricultural extension services could target small holders directly
▪ Developing local entrepreneurs to provide spray or tilling services to the sector would
establish SMEs and improve farming practices
▪ Build capabilities and improve access to finance to enable rehabilitation and
modernization of ginneries
▪ Develop special economic zones for textile and garment production, including
significantly reduced import and export tariffs, strong infrastructure investment, and
other incentives to focus on international seasonal market
▪ Enforce “buy Kenya” for government institutions and encourage local patronage to build
domestic market
▪ Increase duty on new and used textiles over the next 24 months
▪ Reduce cost of business with targeted subsidies and tax benefits
FOCUS SECTOR EXAMPLE: COTTON
Cotton
production
Textile and
Garment
manufac-
ture
A
14
Example: Turkey has grown to the 4th largest apparels exporter
Growth story
15
Gross output (USD billions)
Key success factors
Source: ITAEU (Istanbul Textile and Apparel Exporters Union); team analysis
▪ Investment incentives and other measures
– Free land/relocation subsidy
– Tax breaks
– VAT cuts
▪ High import taxes to protect local industry with
strong enforcement
▪ Creation of 4 industrial zones for textiles
▪ Training and capability building through internship
programs
Government
support
▪ Clusters to improve collaboration, reduce transport
costs and enable specialization for export markets
▪ Focus on increasing value-add through Original
Design Manufacturers and Original Brand
Manufacturers
Private
companies’
successful
strategies
▪ 8th-largest cotton producer in the world
– Access to raw materials reduce costs and
improve lead times
▪ Took advantage of large local demand
▪ Close proximity to European market
Leverage
natural
endowments
0.3
2011
48.5
29.4
19.1
1980
3.7
3.4
Textiles
Apparel
▪ 4th largest exporter of apparels
▪ 9th largest exporter of textiles
▪ Textiles and apparel industry
represents
– 3.5% of gross output
– 17% of total exports
FOCUS SECTOR EXAMPLE: COTTON
A
15
Leather is an attractive sector for Kenya
SOURCE: European Journal of Business and Innovation Research
There is a large domestic and global market…
• 4 million units of leather goods currently
manufactured but local demand is ~28 million, i.e.
imports make up 85% of demand
• Leather contributes Sh 10.6 billion towards GDP
(about 4% of overall agriculture)
• Export value of the leather industry is $90m
(2011) with a CAGR of 16.9% from 2006-11
• Global trade in leather is $50-60 billion, with
Kenya supplying only 0.2% of the market
…in which Kenya can leverage strengths to
increase share
• 80% of Kenyan land area consists of arid/semi-
arid (ASAL) land, ideal for cattle production
90640
KenyaEthiopia
by 2015
Rest of
world1
59,270
Global
demand
60,000
Global leather industry
USD, million
1 Largest exporters: Brazil, India, US, China
FOCUS SECTOR EXAMPLE: LEATHER
Kenya has significant land suitable for cattle
production
1
• Current growth is around 10.3%
• Production is varied and includes cattle, goat,
sheepskin, camel, crocodile, ostrich
There is opportunity for wealth creation and
commercialization of pastoralists2
• Livestock sector overall provides 90% of
employment in ASAL areas and currently
employs 22,000 people
The sector is experiencing high growth and growing
varieties of leather production3
B
16
FOCUS SECTOR EXAMPLE: LEATHER
Interventions
Challenges across the value chain
SOURCE: Kenya Leather Development Council; team analysis
Challenges
▪ Most slaughter conducted at sub-standard facilities with
a shortage of skills
– 60% of skin defects caused during slaughter process
– 25% of skins lost entirely at this stage
▪ Large network of informal traders collect skins
▪ No timely logistics to get skins to tanneries
▪ Increase in smuggling due to new export tax
▪ Only 11 tanneries country-wide (vs. 27 in Ethiopia)
▪ Lack of trained personnel contribute to low quality
▪ Little to no branding in global marketplace
▪ Skin defects from ticks, thorns, and husbandry practices
▪ Lack of quality facilities only able to fulfill ~14% of local
demand
Livestock
Slaughter
Skins and
hides
trading
Tanning
Leather
manufac-
ture
▪ Low productivity as livestock raised by smallholders
▪ Hides are only produced as by-product
• Increase value addition: Current duty
on export of raw hides & skin is 80%
• Increase duty on export of wet blue
gradually by imposing 25% duty to
50% and then ban it in 3 years
• Support expansion of existing
tanneries through incentives and
access to finance
• Support expansion of leather goods
manufacturing facilities and
encourage new players
• Minimize tax duties on industry’s
technology inputs
• Conduct global branding campaign
focused on Kenyan “natural” leather
• Enforce “Buy Kenya, Build Kenya” for
all disciplined forces
Challenges
B
17
FOCUS SECTOR EXAMPLE: LEATHER
Case study: Ethiopia’s leather sector is a major driver
of economic growth, creating 50,000 jobsDriven by… The sector could reach ~640 million by 2015
+43% p.a.
2014/15
636
110
526
13/14
443
92
351
12/13
310
76
234
11/12
218
62
156
2010/11
153
49
104
Domestic
Export
A $636 million leather industry is driven by
▪ Replacing imports, and growing domestic demand reaching 122 million2
▪ At a projected 50% p.a. growth rate pushing exports to $526 million
The largest livestock population in Africa
▪ Herd size of over 100 million1
Under-utilized industrial capacity
▪ Tanneries have excess capacity of 50%
Cost-advantage in labor
▪ Ethiopia has the lowest wage-cost structure among low-cost countries
Strong government support
▪ Emphasis on animal nutrition, parasite control, and hide quality
1 53 million cattle, 26 million sheep, 23 million goat; 2: Assuming domestic consumption tracks GTP projected GDP growth rate of 17%, imports of USD 12.2 mil in 2010/11 decline at 16%, rate seen over previous 12 months
SOURCE: CSA manufacturing report; Access capital – Ethiopia macroeconomic handbook; Import export monthly data
B
USD, million
18
Agro-processing is a key growth sector
Growing local and international markets Eastern Africa market size, Values 2020
SOURCE: Global Growth Compass
� Access to EAC regional market made
easier through integration – 120 million
consumers
� Growing middle class in Africa, and
increasing sophistication in needs for
processed foods
� Processed food1 market size: USD ~ 20
billion by 2020
Growing
regional market
FOCUS SECTOR EXAMPLE: AGRO-PROCESSING
0.1
0.1
0.1
0.2
0.2
0.2
0.5
0.5
0.6
0.8
1.0
1.5
1.5
1.5
1.9
2.2
2.4
6.2
Ready meals
Noodles and pasta
Tea
Baby Food
Sauces, Dressings
Snacks
Canned/Preserved food
Ice cream
Confectionery
Dairy products
Chilled and frozen food
Juices, RTDs and others
Bottled Water
Oils and Fats
Bakery products
Dried processed food
Coffee
Carbonates
Nominal USD, billions
Top 3
categories
constitute >USD
10 b market
value
� Horticulture products already demanded
largely in European markets e.g., Tesco a
major client
� Huge opportunity to manage processing
value chain instead of exporting raw
materials for processing elsewhere
Existing and
growing
international
demand for
Kenyan
produce
C
19
There is a significant opportunity to develop primary and
secondary processing across many sectors
Production Primary processing Secondary processing
1 2 3
FOCUS SECTOR EXAMPLE: AGRO-PROCESSING
Tertiary processing
4
Washing and cleaning,
preparing, basic milling
Packaging, crushing,
grinding
Transformation, higher
value add, food science
Dairy• Capacity for
pasteurization for local
market, opportunity to
serve regional market
• UHT filling for local
market, opportunity to
serve regional market
• Production of yoghurt,
cheese, opportunity to
service regional market
Tea• Adequate cleaning
capacity
• Packaging for export and
domestic done locally
• N/A
Coffee• Adequate cleaning
capacity
• Roasting, grinding for
export done locally
• N/A
Rice• Paddy rice cleaning by
cooperatives
• White rice as staple for
local market, growing
regional market
• Limited processing E.g.,
rice powder
Grains/cereals• Capital intensive for flour
production
• Bread production for local
market, growing regional
market
• Limited production of
pasta etc
Fruits/vegetables• Lack of processing
capacity – huge potential
• Packing, canning, cold
chain challenges, high
quality standards
• Complex science requires
investment
Livestock• Inputs expensive,
unreliable supply, sent
abroad for processing
• Limited value add
processing
• N/A
C
20
Production
Processing
and
marketing
Interventions to unlock agro-processing in Kenya
▪ Enabling effective linkages will develop smallholder commercial
agriculture as well as domestic capacity for increased value added
production via processing – which relies on a number of enabling factors
including:
– Devising a platform to link smallholders to processors
– Innovating and allowing increased access to agricultural credit
– Supporting cooperatives to improve management
capabilities/sophistication
▪ Evaluate economics of supply, demand, cost curve to understand the
benefit of local processing
▪ Need to understand rigorous international quality standards for export
markets
▪ Creating an enabling environment for processors/buyers to enter the
market e.g., access to land, incentives
▪ Develop efficient access points for export e.g., dedicated air facilities, to
ensure maintenance of cold chain
FOCUS SECTOR EXAMPLE: AGRO-PROCESSING
C
21
Kenya can support a strong beef industry
Growing market demand Kenya’s potential is currently under utilized
� East Africa – Tanzania, Uganda
� Middle East markets – UAE, Kuwait,
Qatar, Saudi Arabia
� Central Africa – DRC
� Northern Africa – Sudan, Egypt (10
tonnes/week)
� Targeting – China, Libya, Malaysia
Growth of
export
markets
FOCUS SECTOR EXAMPLE: BEEF
• 80% of Kenyan land area consists of arid/semi-
arid (ASAL) land, ideal for cattle production
Kenya has significant land suitable for cattle
production
1
The sector is has under-utilised processing capacity2
• Live cattle is exported for processing
• Processing capacity is available, but often not
up to standard
D
22
� Global market for fresh meat and fish is
$640 billion and growing
Market size
There are many challenges across the value chain
Linkages within the
systemProduction Processing
Marketing and
distribution
1 2 3 4
▪ Absence of disease free
zones
▪ Lack of formalised
farming techniques
▪ Issues with animal feed
– poor quality and high
cost ingredients
▪ Uneven distribution of
livestock feed
▪ Poor water supply
▪ Inadequate extension
activity
▪ Lack of appropriate
credit facilities
▪ High transport costs
▪ High cost of live cattle
▪ Lack of adequate
slaughterhouses that
meet international
standards
▪ Major exports of live
animals to countries
where processing is
better controlled and
affordable e.g.,
Mauritius, Egypt
▪ Lack of health and safety
standards enforcement
▪ Few market players –
KMC, QMP, Farmers
Choice, Alpha
▪ Limited variety of
products
▪ Few value-added
products
▪ Kenya prices are
uncompetitive with
international prices e.g.,
Brazil and Argentina
▪ Weak and inefficient
linkages between
demand and supply
FOCUS SECTOR EXAMPLE: BEEF
D
23
Interventions in Kenya’s beef industry
▪ Accelerate the development of disease free zones
▪ Improve productivity
– Improve distribution of feed to fatten cattle
– Increase support to farmers to formalise farming techniques
▪ Drastically increase production
– Encourage entrance by private sector players to establish small
abattoirs or meat processing facilities
– Support slaughterhouses to achieve export standards to enable
increased supply to high potential markets such as the EU
– Kenya Meat Commission is set for privatisation to help it increase its
output and efficiency and enable the country meet demand of an
expanding export market
▪ Put controls on exports of live cattle
FOCUS SECTOR EXAMPLE: BEEF
Production
Processing
and
marketing
D
24
There is huge potential to develop a fishing industry
% marine fisheries production potential
Production potential Current situation
▪ Tuna is one of the main fish species targeted by the
industrial fishers in the Western Indian Ocean
▪ 80% of the Indian Ocean catch is accounted for by
countries in the region (Kenya, Tanzania, Mauritius,
Seychelles, Madagascar, Somalia, Comoros and
Mozambique)
▪ This is equivalent to 826,000 tonnes with an estimated
value of between $ 3-4 billion per annum
▪ In Kenya, tuna fishing is undertaken within the coastal
near shore waters and the 200 nautical miles Economic
Exclusive Zone (EEZ)
▪ Inshore marine fishing is mainly artisanal
– ~4,800 un-motorized boats produce about 6,000-7,000
tons of fish annually, estimated at KES 500m
▪ Offshore fisheries zone is mainly exploited by vessels from
Distant Water Fishing Nations (DWFNs)
– Some of the fish is landed in Kenya and exported,
whilst some is landed directly in the Distant Nations
– License fees earn the Government ~ KES 30 million per
year (~US $ 400,000)
SOURCE: EU/Indian Ocean Commission
95
Total potential for marine fishing is
estimated at 150,000 Mtons
5
Current production
is only 7,000 Mtons
FOCUS SECTOR EXAMPLE: FISHING
E
25
There are challenges in wild catch and aquaculture
▪ Lack of infrastructure to take
advantage of its geographic location
along the richest tuna belt in South
West Indian Ocean
▪ Lack of modern commercial size
fishing vessels
▪ Lack of monitoring allows for greater
frequency of illegal fishing incidents
▪Weather patterns influences fishing
production for small vessels
▪ Lack of expertise regarding fish health
and pond conditions
▪ Limited managerial experience of fish
farmers
▪ Lack of capital and infrastructure to
sustain farming operations
▪ Limited availability of fish feed and/or
fish feed mills
▪Need for more stringent
certification for
aquaculture products in
order to meet
international health
standards
▪ Inferior processing
methods
▪ Limited distribution chain
Roe and
smoltFarming
Trade, Sales,
MarketingProcessing
Fish feed
Fish meal/
oilHandlingSea harvest
Wild catch industry Aquaculture industry Both industries
FOCUS SECTOR EXAMPLE: FISHING
E
26
Kenya must develop a major fishery industry
SOURCE: GoK
Interventions
Establish a joint venture with equity held by a major private company and Kenya
government where GoK would grant exclusive fishing rights and protection to the JV,
while the private company would supply fishing vessels and other capital
Establish a joint venture with equity held by a major private company and Kenya
government where GoK would grant exclusive fishing rights and protection to the JV,
while the private company would supply fishing vessels and other capital
Establish fish processing industries and associated infrastructure (e.g., modern cold
storage facilities) in the greater Mombasa area.
Establish fish processing industries and associated infrastructure (e.g., modern cold
storage facilities) in the greater Mombasa area.
Train a large number of Kenyans to undertake industrial fishing and processingTrain a large number of Kenyans to undertake industrial fishing and processing
Adopt appropriate policy framework for commercial fishingAdopt appropriate policy framework for commercial fishing
Establish the Coast Guard and its capacity, including adequately equipped vessels,
ground-based radar systems, and properly trained personnel
Establish the Coast Guard and its capacity, including adequately equipped vessels,
ground-based radar systems, and properly trained personnel
FOCUS SECTOR EXAMPLE: FISHING
E
27
East Africa will see $100 billion infrastructure investment
Increasing investment in infrastructure Priority opportunities
SOURCE: Global Growth Compass
FOCUS SECTOR EXAMPLE: BUILD LOCAL INDUSTRY
Transport
Energy
Other
utilities
Real Estate
Total projects value
(USD B)
78
9
8
3
Example projects
Lamu Port-S Sudan-Ethiopia corridor
Mombasa-Malaba Railway
Tanga port and railway
High-voltage line installation
Eastern Electricity Highway Project
Mnazi Bay - Dar NAG pipeline
Olkaria N geothermal plant
Karuma hydropower plant
Nairobi Metro Services Improvement
SEZ, e.g. Konza technology city
development
Refinery in Kabaale in Hoima district
National Housing Corp Real Estate
develop.
Private sector developments
• Cement
• Steel (structural,
rods, bars)
Basic
materials
Equipment
Services
• Furniture
• Locomotive
assembly
• Construction
3
28
Interventions to develop these sectors
Challenge Intervention
SOURCE: Global Insights, Team analysis
FOCUS SECTOR EXAMPLE: BUILD LOCAL INDUSTRY
Wood
products
Steel
Cement
Cons-
truction
services
+7% p.a.
6.14.33.5
+3% p.a.
1.3
83%17%
1.2
79%
21%
0.6
58%
42%
Consumption in Kenya
USD Billions
+7% p.a.
0.6
19%
81%
0.4
20%
80%
0.5
11%
89%
+6% p.a.
0.3
22%78%
0.2
23%
77%0.2
13%
87%
2007 2012 2017
Imports
Local production
Breakdown unavailable
Key challenges
• Lack of scale
• High cost of capital
• High energy costs
• Significant cost pressure
from Asian competitors
• High energy costs
• Skills and capability
depending on the
sector
• Availability of low cost
machinery
• Sustainable use of
resources
• Skills and capability
Opportunity / approach
• Support local growth and expand exports
within and outside EAC (e.g., to the US
through AGOA)
• Leverage availability of local resources
• Increase local production (e.g., by
creating mini steel mills) to displace
import of billets, wire rods
• Use scrap metal, DRI or HBI , leverage
availability of Iron Ore
• Support industry growth
• Expand local sector from cement
grinding, to include clinker production
• Support local cement production
• Build and expand local construction
sector into new areas through incentives
for local firms and capability transfer
• Reform tax incentives
3
29
Transforming government industries can unlock latent
value in addition to the focus sectors
FOCUS SECTOR EXAMPLE: GOVERNMENT INDUSTRIES
4
First, we will categorise key government industries based on
strategic relevance and operational health…
…then we will determine the target
recipients for investment
IndustryInvestment
required
Pan Paper Mills Kes. 1bn
Sugar Industry Kes. 5bn
Coconut/ cashew
nut
Kes.500m
Pyrethrum Industry Kes.1bn
Livestock industry Kes.1bn
Coffee industry Kes.1bn
Total Kes.9.5bn
Relevance
to strategy
Organisational health
High
Low
StrongWeak
Invest for
growth
Exit
industry
Consider
privatisation
Invest in
improving
organisation
PRELIMINARYILLUSTRATIVE
30
We can increase Kenyan GDP by up to $1 billion just by
increasing broadband internet to 50% penetration
GDP increase per 10% increase in broadband
penetration, Percentage
Middle East 0.1
India 0.3
Malaysia 0.5
Germany 0.6
France 0.7
Victoria (Australia) 0.8
US 0.8
UK 0.9
New Zealand 0.9
OECD high /
Medium income
0.9-
1.5
Broadband impacts economy
▪ GDP contribution from direct
network investments
▪ Impact of broadband investment
on suppliers of equipment,
content (South Korea application
development ecosystem)
▪ Foreign direct investments as a
result of ICT infrastructure (e.g.
Argentina ICT sector growth)
▪ More efficient business processes
because of connectivity (e.g.
Singapore development of supply
chain – port, Changi Airport and
Singapore Airlines)
▪ Increase in knowledge and
services – improved health and
education services (e.g. online ICT
training resource in Sweden used
by 35% of teachers)
SOURCE: ITU ; Press clippings; Companies websites; World bank
1 Increase of 25% implies GDP elasticity of 2,5x 0.65 = 1,6% of GDP; GDP level for 2011 assumed = 33,62 billion (World bank)
2 Employment elasticity of 0.5 of GDP growth, 0.5% increase in employment per 1% increase in GDP
ESTIMATES
• McKinsey & Company Proprietary and Confidential
• Up to $1 billion in
GDP increase in
Kenya by raising
broadband
penetration from
1% to 50% (i.e.
3% of GDP)1
• This would create
140,000-270,0002
jobs alone
FOCUS SECTOR EXAMPLE: ICT
5
31
Attracting investment is hard due to low competitiveness
ENABLERS: EASE OF DOING BUSINESS
SOURCE: KenInvest, Kenya Economic Survey 2010 and 2011; World Investment Report 2012
6
Kenya is currently attracting the smallest
proportion of FDI in Eastern Africa
Our competitiveness has been falling as an
investment destination:
▪ Low “doing business” indicators
▪ Low on the global competitiveness index
Issues include:
▪ Tedious and time consuming procedures
▪ Multiplicity of institutions involved
▪ Silo culture in government
Total FDI inflows to Kenya
USD million
0
200
400
600
800
1000
1200
Overall ranking in Ease of Doing Business
129122
3254
20142013
Kenya Rwanda
32
We will increase our ranking with targeted reforms
ENABLERS: EASE OF DOING BUSINESS
29
26
44
73
32
90
10
0
16
33
3
465
158
125
10
9
8
6
9
9
8
8
6
9
3
Registering property
Dealing with construction permits
Starting a business
4444Enforcing contracts
Trading across borders
Paying taxes
Getting electricity
41
Post-reformCurrent
1847
60
95
90
33
163119
143156
166
166
151
134
Procedures
Number
Time it takes
Days
Ranking
Doing Business indicator
Doing Business indicator 2014 Rank Proposed changes
Resolving Insolvency 123 Reduce duration from 4.5years to 1.5 years Enact the Insolvency Bill
Protecting Investors 98 Allow access to all corporate documents before trialRegulate approval of related
party transactions
Getting Credit13 Enforce legal rights and maintain a unified credit
information system. Enact the Insolvency Bill
Other reforms necessary
6
SOURCE: KenInvest, IFC Doing Business indicators 33
We will implement through a “one-stop shop”
Key elements of our approach
• Roll out investment Pitch Book – March 2014
• Roll out One Stop Shop model for Kenya – April 2014
• Host Inter-
Governmental forum –
March 2014
• 1st Global Investor
conference On Kenya to
be Launched in June
2014
• Target $1 Billion in FDI
2014/2015
ENABLERS: EASE OF DOING BUSINESS
6
34
We have an advantage over Africa in most skill dimensions
Blockages to
hiring
% share of total
reported
reasons for not
hiring
Skills supply in
current
workforce
% of companies
responding that
current
workforce has
insufficient skills
6.5
7.8
6.3
10.7
2
4
6
5
7.4
9.1
8.3
9.3
Education
Soft skills
Technical skills
Work experience
10
9
12
13
Education
Soft skills
Technical skills
Work experience
Africa Kenya
ENABLERS: SKILLS
7
SOURCE: McKinsey survey
Kenya trails Africa Kenya leads AfricaLower scores preferable to higher scores
35
We will apply best practices in national skill-building programs
Results
▪ SENAI (The National Industrial Apprenticeship Service) was
established in 1942 and offers technical education and
vocational training (such as apprenticeship, qualification courses,
technical courses) across a wide range of sectors
▪ The industry imposes a 1% levy on payroll (industries, fisheries,
transportation and communications) to fund training programs
▪ The chambers of employers control a host of institutions (of
which, one is SENAI) with full independence under private sector
statutes.
▪ Increased employment opportunities
– 90% of employers prefer to hire from SENAI
– 78% employability of former SENAI students
▪ Increased popularity and track record of program
– Over 55 million total enrollments1
– Over 2.3 million annual enrollments
▪ Subsector strengthening through increased
competitiveness and growth of Brazil’s industrial
subsectors
▪ Increased industrial contribution through consulting
services, knowledge sharing, and equipment provision
Brazil
▪ Program directly oriented towards low income older workers
and the unemployed youth
▪ Government created training centers focused on capability
building in line with specific industry demand (e.g., managerial
and business development skills for textiles industry and
scientists, engineers and geologists for Oil & Gas, Steel and
mining sectors)
▪ Improved reach and relevance
– 162 public training centers in operation, financed
mainly through government budget allocations
– 50,000 people trained by public centers in 2005
Indonesia
▪ Training program geared toward workers at SMEs with largest
potential to impact Moroccan economy
▪ 6 month program (2 days a month) focused on Capability
building, implementation support & knowledge sharing
▪ Employees spend remaining days at work implementing
manufacturing skills learned from training program
▪ Improved corporate productivity shown by average
increased productivity of 50% of 30 initial companies
who completed 6 months training
▪ Improved national GDP: Anticipated 1.5% increase in
GDP over 3 years due to program
Morocco
Detail
ENABLERS: SKILLS
Case examples
7
36
You cannot create a viable industrial zone without some existing (natural)
and sustainable competitive advantage
Don’t put all your eggs into one basket – build the zone around 2-3 sub-
sectors
The industrial zone should have 30,000 ‘core jobs’ to accelerate growth
and create maximum cluster effect
Get the private sector involved in governance of cluster
The regulatory ‘special economic zone’ environment is important, but not
sufficient factor in attracting investors
SOURCE: Team analysis
We will create SEZs and an FTZ for target sector growth using
key success factors drawn from global SEZ implementations
ENABLERS: SPECIAL ECONOMIC ZONE
7
37
Inc
en
tive
fra
me
wo
rkD
oin
g b
us
ine
ss
an
d
ad
min
istr
ati
ein
terf
ac
e
Ro
le o
f d
eve
lop
er-
ma
na
ge
rWe will use a systematic framework for creating the SEZ
Tax on business
Tax on employees
Training aid
Set-up aid
Administrative one-stop-shop (company set-up)
• State contribution to/payment of training expenses
• Level of State payment of initial set-up investment
• Proper one-stop-shop: assistance with and centralization of administrative procedures for company set-up and formation
• Delegation of administrative duties (e.g. immediate issue of permits)
DescriptionRising levels of competitivity/aggression
>20% 10-20% 5-10% < 5%
>30% 20-30% 10-20% < 10%
>30% 10-20% 5-10% < 5%
<20% 20-30% 30-50% > 50%
<5% 5-10% 10-20% > 20%
Labor flexibility• Flexibility of labor law (e.g. short-term contracts, working hours)• People flows (visas and work permits for expats)
19 indicators
Doing business -administration
• Simplification of/reduction in repetitive administrative procedures in the zone:– Tax (e.g. tax/social security returns)– Customs regime– Foreign exchange regime
Not aggressive Very aggressiveNot very aggressive
• Company tax (IS)
• Value added tax (VAT)
• Customs regime (customs duty on import of goods)
• Rate of income tax for workers
• Rate of income tax for executives
• Social security contributions rate for the employer
• Social security contributions rate for employees
• Rate of income tax for expats
• Social security contributions rate for the employer (expats)
• Social security contributions rate for employees (expats)
Integration in development terms
• Delegation of planning powers:– In zone (e.g. development/construction restrictions)– Off site (e.g. water/power connections, roads)
• Interface with the city (e.g. transport links to the city)
Not aggressive Very aggressiveNot very aggressive
Not aggressive Very aggressiveNot very aggressive
Not aggressive Very aggressiveNot very aggressive
>30% 20-30% 10-20% 0-10%
> 20% 15-20% 5-15% 0-5%
Subsidized pay>30% 20-30% 10-20% 0-10%
> 15% 10-15% 5-10% 0-5%
> 20% 15-20% 5-15% 0-5%
>30% 20-30% 10-20% 0-10%
> 15% 10-15% 5-10% 0-5%
ENABLERS: SPECIAL ECONOMIC ZONE
7
38
We will ensure our SEZ and FTZ are competitiveIn
ce
nti
ve
fra
me
wo
rkD
oin
g b
us
ine
ss
an
d
ad
min
istr
ati
ein
terf
ac
e
Ro
le o
f d
eve
lop
er-
ma
na
ge
r
Tax on business
Tax on employees
Training aid
Set-up aid
Administrative one-stop-shop (company set-up)
• State contribution to/payment of training expenses
• Level of State payment of initial set-up investment
• Proper one-stop-shop: assistance with and centralization of administrative procedures for company set-up and formation
• Delegation of administrative duties (e.g. immediate issue of permits)
Description
Labor flexibility• Flexibility of labor law (e.g. short-term contracts, working hours)• People flows (visas and work permits for expats)
Doing business - administration
• Simplification of/reduction in repetitive administrative procedures in the zone:– Tax (e.g. tax/social security returns)– Customs regime– Foreign exchange regime
• Company tax (IS)
• Value added tax (VAT)
• Customs regime
• Rate of income tax for workers
• Rate of income tax for executives
• Social security contributions rate for the employer
• Social security contributions rate for employees
• Rate of income tax for expats
• Social security contributions rate for the employer (expats)
• Social security contributions rate for employees (expats)
Integration in development terms
• Delegation of planning powers:– In zone (e.g. development/construction restrictions)– Off site (e.g. water/power connections, roads)
• Interface with the city (e.g. transport links to the city)
Dynamic view: rising levels of aggression
MOROCCO EXAMPLE
ENABLERS: SPECIAL ECONOMIC ZONE
7
39
Small and medium-sized enterprises are vital to our future
Current status
• Kenya’s SME role:
‒ 20% of GDP
‒ 80% of total employment and
90% (591,000) of all new jobs
created in 2012
‒ Poverty reduction through
generation of income
‒ Minimizing rural-urban migration
• Binding constraints to SMEs
competitiveness include:
‒ Inadequate access to financial
services (industrial financing)
‒ Poor markets access,
‒ Lack of appropriate worksites
‒ Inadequate skills and low
technologies
Overall impact
potential
Creation of 700,000
jobs annually
Opportunity
• Enhancing Value Addition to agricultural
and natural resources in devolved
governments
• Exploiting the policy on 30% of all
public procurement to the youth
• Cross-border trade for EAC regional
market
• Accelerate Biashara Bank (KIE, YEDF,
WEF, UWEZO) to earmark 30% of the
funds to Industrial Financing for
product & market development, asset
financing, marketing, working capital
• SME Parks to provide Common
Manufacturing Facilities, promote
cluster development, develop local pool
of skilled labour, network of firms, and
promote entrepreneurship
• Incubation Support Programme to
promote technological upgrading,
capacity building, IPRs, quality standards
(4K Programme)
Additional funding in FY2014/15 of KSh. 200m for master planning and architectural designsAdditional funding in FY2014/15 of KSh. 200m for master planning and architectural designs
ENABLERS: BUILDING SMEs
8
40
We will apply global best practices to support SME growth
SOURCE: Eurostat, McKinsey analysis
Enabling factors Interventions
Finance
SMEs from
inception
to scale
Promote
entrepre-
neurial
culture
Shape a
fertile SME
ecosystem
Targeted education
programs
Targeted education
programs
• Foster development of education programs that boost the attractiveness of
entrepreneurship and encourage an entrepreneurial mind-set
• Incentivize business training and support for SMEs
Innovative
environment
Innovative
environment
• Support the promotion of entrepreneurship through the creation of
associations, televised contests, and business-plan competitions
Employee skillsEmployee skills• Align the skill requirements of the SMEs and education offerings
(primary and secondary education, vocational training)
Low regulatory
burdens
Low regulatory
burdens
• Streamlined cumbersome registration process
• Simplify accounting/auditing standards
Collaboration
between
stakeholders
Collaboration
between
stakeholders
• Encourage cooperation between established companies and SMEs through
targeted tax breaks
• Promote relevant research and exchange of talent among academia and SMEs
Access to capitalAccess to capital
• Ensure availability of financing for each stage of enterprise development,
e.g., address the “missing middle” perhaps via an Industrial Development
Bank to support equity markets dedicated to high-potential SMEs
Growth stimulusGrowth stimulus
• Develop solutions for high-risk, low-qualified entrepreneurs to help fight
poverty, long-term unemployment, and social divides
• Provide incentives to grow SMEs in selected competitive sectors e.g., through
preferred supplier models where procurement relies on SME component
ENABLERS: BUILDING SMEs
8
41
SOURCE: World Bank “Special Economic Zones: Performance, Lessons Learned, and Implications for Zone Development”; Press Articles;
MGI Economics Research Team Analyses
An investment promotion agency (IPA) is a government agency (or occasionally a nonprofit
organization) whose mission is to attract foreign investment to a country, state, region or city
1 Sorted by the stages of an IPA’s role in attracting FDI
Why are they successful?
▪ Overcome information
asymmetries by spreading
awareness about
investment opportunities
▪ Centralize information
gathering, cutting down on
costs to potential investors
▪ Speed up screening and
processing times
“Investment promotion
agencies are central to
attracting foreign direct
investment” – United
Nations Conference on
Trade and Development
“IPAs are often key players,
being on the front line of
targeting investors and
marketing the country as a
whole” – International
Institute for Environment and
Development
ILLUSTRATIVE
▪ Marketing
▪ Investor targeting
▪ Information provision
▪ Use of specific
promotional tools
▪ Investment facilitation
▪ One-stop clearance
▪ Continued investment
support
Mission/objective 1
We will create an investment promotion agency to facilitate
the investment process ...
ENABLERS: INCREASING FOREIGN INVESTMENT
9
42
Investment
excellence
driven by
Investment
Promotion
Agency
Supporting
enablers
Design Execute Enforce
Develop customized
pitch books with
tailored value
proposition to
prioritised investors
in key sectors
Engage an army of
investment officers to
source and pitch deals
to attract enough
investors to meet the
required level of
investment per year
Investment and
Enforcement agency to
ensure quality of
committed and
deployed investment
Plug-and-play industry ecosystem
Business friendly environment and a cosmopolitan society
▪ Provide large scale infrastructure with proximity to efficient ports and logistics providers
▪ Develop plug-and-play facilities with well-connected logistics and supporting infrastructure to ensure quick ramp up times and assured supply
▪ Provide clear and transparent investment rules and governance
▪ Ensure ease of establishing and operating business to achieve top position in “Ease of Doing Business”
… and create an enabling environment for investors
ENABLERS: INCREASING FOREIGN INVESTMENT
9
43
We will establish a formal ministerial delivery mechanism
SOURCE: McKinsey
Description Tasks
Industrial
Development and
Delivery Board
▪ Leads delivery programme
▪ Chaired by the Minister
▪ Delivery Unit will act as the Secretariat
▪ Meetings will be held on a monthly basis
▪ Monitors Delivery Programme
▪ Problem-solving through escalation
▪ Counsel and guidance to Delivery Unit
Ministerial
Delivery Unit
▪ Independent unit in the Ministry
responsible for ensuring delivery
▪ Leader reports to Minister and PS
▪ Leader has direct authority to assign
resource
▪ Leader can hold Departments accountable
▪ Performance management and reporting
to Delivery Council
▪ Weekly monitoring of Departments
▪ Provides problem-solving assistance to
projects
▪ Secretariat to the Delivery Council
▪ Communications and development work
Steering
Committees
▪ Responsible for overseeing delivery of
specific programs
▪ Chaired by the Department Head
▪ Meetings will be held on a monthly basis
▪ Performance management of
Departments
▪ Escalates issues that require intervention
▪ Reviews budget spending progress
▪ Monitors daily and weekly
implementation
ENABLERS: DELIVERY
10
44
This will include 3 sets of tools to measure performance
Implementation tracking tool
▪ Each KPI project will have an
implementation plan
▪ Ministerial Delivery Unit to track
daily and weekly the progress of the
implementation plans
▪ Weekly and monthly progress
reports are submitted to SteerCo
and Delivery Council
▪ Delivery Unit will report at least 3
highlights in weekly updates
A KPI dashboard
▪ Delivery Unit will track, monitor and
report the KPI progress of each
Department to both the SteerCo
and Delivery Council, weekly
▪ SteerCo and Delivery Council will
refer to the KPI dashboard report to
chase Heads of Departments on
yellow and red status issues
B PS Scorecard
▪ Three-way communication in
establishing Department Head’s
KPIs (Minister, Head of Delivery Unit
and PS)
▪ PS sets targets and KPIs, together
with detailed implementation
programmes
▪ Minister approves KPIs and
implementation plans, suggest new
focus areas and assess PS’s
performance during Performance
Dialogues
▪ Delivery Unit Head facilitates
Performance Dialogues, provides
advisory support and guidance
C
ENABLERS: DELIVERY
SOURCE: McKinsey
10
45
Feb Mar Apr May Jun Jul Aug
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
Develop sectors 1 & 2
Prioritise
turnarounds
Develop targeted interventions for up
to 6 organisations
Develop SEZ value proposition and conceptual
design, infrastructure, governance, etc
Develop sectors 3 & 4
Design FDI and Investment
Promotion Agency approach
Assign tasks,
build roadmap
Prioritize
focus sectors
Design solutions on prioritised issues
e.g. skills bootcamp, credit etc
Execute quick wins
& resolve issues Execute
Identify required skills
for each focus sector
Develop integrated plan for
building required skills
Diagnostic: SME landscape
barriers & solutions
Establish
MDUExecute against delivery outcomes and roll-out ministerial effectiveness program
Activity
▪ Sector strategies
& roadmaps
▪ Transform
industry
▪ SEZ strategy
Sector strategy,
SEZ, FDI
▪ FDI attraction
Ease of doing
business
Skills
development
Catalyse SME
growth
Build delivery
capability
Immediate
In sequence
We have designed a carefully sequenced program to deliver
46
▪ Identify and prioritize the critical issues and barriers, and specific owners within Govt
▪ Design solutions, build alignment, and develop roadmap for various stakeholders
▪ Launch quick wins and implementation plan for longer-term solutions
Improve ease of doing business from
123rd in the world to top 10 in 5 years
Drive key sectors and leverage AGOA
and European duty-free agreements to
grow GDP and create jobs
▪ Prioritize sectors based upon size, employment and ability to compete
▪ Complete economic build up vs. growth objectives
▪ Launch 4 detailed sector strategies to identify key sub-sectors and requirements to win
▪ Identify critical enablers (e.g. infrastructure, skills, etc)
▪ Validate strategy with key private sector players
▪ Identify potential anchor investors and begin delivery
▪ Establish a competitively advantaged
SEZ/FTZ
▪ Benchmark SEZ relative to regional and global competitors
▪ Design value proposition including infrastructure, financial, labor, etc
▪ Design governance and ownership options, assess financing needs and anchor investors
▪ Create an FDI engine to increase FDI
by 5x
▪ Design and articulareoverall Kenya Value Proposition and identify key barriers
▪ Establish org capacity and design/align strategy for investment promotion (inc President)
▪ Identify target investors, develop customized pitchbooks, launch roadshows, etc
Establish a robust delivery capability ▪ Establish ministerial delivery unit capability to ensure delivery of the above 1-4
programs
▪ Develop scorecard and performance tracking approach
▪ Assess overall program funding requirements and resolve
Catalyze growth in small and medium
sized enterprises
▪ Map the landscape of SMEs and likely growth opportunities
▪ Determine barriers to growth and practical solutions to resolve
▪ Develop quick interventions which can work at scale
▪ Create roadmap to implement
▪ Prioritise and restructure failing
industries with capacity for
turnaround
▪ Prioritise organisations for urgent intervention and are strategic or sector priorities
▪ Develop a series of targeted interventions on an institution by institution basis
▪ Proceed with turnaround program
We have identified the activities that need to be undertaken
Support skill development for key
sectors
▪ Identify key skills required for each sector
▪ Develop integrated plan for how to build each of the required skills
47