From left: ICT secretary Joe Mucheru with Konza Technopolis Development
Authority chairman Reuben Mutiso, ICT PS Victor Kyalo and the agency’s
chief executive, John Tanui, at the launch of the strategic plan at
Hotel InterContinental in Nairobi yesterday. PHOTO | DIANA NGILA
The upcoming
Konza tech city has signed an agreement with Israeli city Tel Aviv to
provide training for start-ups that will be hosted at the hub.
The
deal signed between the Konza Technopolis Development Authority (KOTDA)
and the municipality of Tel Aviv will see Kenyan firms sent to Israel
for technology training.
Israel will also send experts to advise the agency and the two countries will host innovation competitions.
“They
will support us in building the innovation ecosystem. We think there is
plenty we can learn from them in terms of how to turn start-ups and
ideas into viable businesses,” said KOTDA chief executive John Tanui
yesterday.
Kenya is hoping to capitalise on Tel Aviv’s
position as a global start-up hub. Over the past three decades, Israel
has recorded steady economic growth driven in part by the expansion of
the technology sector.
As of 2014, 1,000 new start-ups
were launched every year turning the country into a favourite target
market for venture capital funds.
This is the latest
partnership between Konza City and a foreign government. Earlier this
year, the government inked a deal with South Korea to construct a
university on the site of the planned city.
The
KOTDA yesterday launched its five-year strategic plan with an aim to
complete the first phase of infrastructure development by 2020.
The
project has been slow since it was first mooted during the Kibaki
presidency. According to the agency, these delays have harmed the
project’s public perception and have contributed to investors viewing
the project as being “high risk”.
The authority also
continues to face financial and human resource challenges, with the
report pointing out that “the financial subsidy for Konza Technopolis
(has been) withdrawn or reduced to a minimum”.
The KOTDA Bill, which sets out tax incentives for potential investors, has stalled since it was authored in 2014.
The
Konza project could rival other upcoming smart cities in Africa, such
as Ghana’s Hope City and Tanzania’s planned technology park.
The
first phase of construction is taking place within a 400-acre segment
within the larger 5,000 acres that the government has set aside for
Konza. It is expected to cost Sh600 billion, with 10 per cent of the
funds being contributed by the government.
So far the
Authority has broken ground on a Sh3 billion complex that will house
early investors and has set up electricity and road infrastructure.
The
government says it has received 66 expressions of interest from
businesses that wish to take up space on the initial 24 parcels of land
set aside for leasing. The final firms to occupy this space will be
selected early next year.
KOTDA also says that six local universities have shown interest in setting up campuses within the techno city.
mumumo@ke.nationmedia.com
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