How investors will benefit from Konza city plan

Last week, President Kibaki was the chief guest during the ground-breaking ceremony of the Konza Technology City.

This event changed the Malili ranch from just another government idea into a running project. Now the rest of us can talk about the project from a capitalist’s point of view.

The technopolis is a flagship project of the Vision 2030. It seeks to establish a hub in Africa where different companies with interest in technology can open offices and industries.

The project is expected to take up to 25 years to be completed. Is this something small business owners should look forward to?

First, the direct beneficiaries of the tech city are those in the ICT industry. With the coming of the optical fibre and the liberalisation of the economy, the project is timely.

Christmas has come early for players in the real estate industry. While construction is ongoing, the project will require cement, tiles, steel and glass, among other building materials.

As the project proceeds, the businesses will need to import technology equipment. Clearing and forwarding agents at the port and transporters will gain as they serve different companies setting up in Konza.

Small traders will also benefit as soon as the first phase is complete and population begins to grow.

Yet the real opportunity in Konza is not the direct money, but the indirect income that would be earned from the project. It is expected that the project will employ about 200,000 people on completion. This portends a drastic growth in the size of the local market for anything.

Further, Konza technology city is expected to take up about Sh850 billion in its development. That is about one third of our current gross domestic product (GDP).

All factors constant, the city can contribute about 10 per cent to our GDP and attract a considerable amount of foreign investment. This translates into a stronger shilling, making imports manageable and result in a ripple effect in the economy. Growth means more money and opportunities.

The biggest loser in all this is the small investor, hoping to reap from the development. That is a loss, however, I choose to focus on the opportunity.

This project will empower those who are in business. The onus is on the entrepreneur to put one’s house in order and be the preferred supplier in one’s industry.

Mr Odhiambo is the managing consultant of Elim Consulting. E-mail: [email protected].