Towards The Full Exploitation of The Investments by the African Diaspora: The role of IPC, Kenya By...
-
Upload
marybeth-cross -
Category
Documents
-
view
216 -
download
1
Transcript of Towards The Full Exploitation of The Investments by the African Diaspora: The role of IPC, Kenya By...
Towards The Full Exploitation Towards The Full Exploitation of The Investments by the of The Investments by the
African Diaspora: The role of African Diaspora: The role of IPC, KenyaIPC, Kenya
By Frederick OwitiBy Frederick Owiti
Investment Promotion CentreInvestment Promotion Centre
Migrant remittancesMigrant remittances
Transfer of funds from migrant to relatives or Transfer of funds from migrant to relatives or friends in their country of originfriends in their country of origin
They are important feature of the modern They are important feature of the modern economic lifeeconomic life
Remittances are important source of global Remittances are important source of global development finance development finance
They provide much sought after foreign They provide much sought after foreign exchange to recipient countriesexchange to recipient countries
They supplement the domestic incomes of They supplement the domestic incomes of millions of poor families across the worldmillions of poor families across the world
Diaspora Diaspora remittances......contremittances......cont
They are more stable source of capital than They are more stable source of capital than private capital hence used as collateral against private capital hence used as collateral against which to borrow on the international capital which to borrow on the international capital marketmarket
They have a direct impact on poverty reduction They have a direct impact on poverty reduction because they flow directly to poor householdsbecause they flow directly to poor households
Diaspora are major source of FDI, market Diaspora are major source of FDI, market development, Technology transfer, development, Technology transfer, philanthropy, tourism, political contribution philanthropy, tourism, political contribution and more intangible flows of knowledge, new and more intangible flows of knowledge, new attitudes, and cultural influenceattitudes, and cultural influence
Organizing the Organizing the DiasporaDiaspora Diaspora is the creation of individuals and Diaspora is the creation of individuals and
groups acting on their own initiatives groups acting on their own initiatives rather than a product of government rather than a product of government interventionintervention
Diaspora organization include Diaspora organization include associations, religious organizations, associations, religious organizations, professional association, charitable professional association, charitable organization, development NGO’s, organization, development NGO’s, investment groups, affiliate of political investment groups, affiliate of political parties, humanitarian relief organization, parties, humanitarian relief organization, school and clubs for preservation of school and clubs for preservation of culture, virtual networks and federation of culture, virtual networks and federation of association association
Remittances to Remittances to developing countriesdeveloping countries In 2001 they stood at $72.3B, 42% of FDIIn 2001 they stood at $72.3B, 42% of FDI In 2003 over $300B was estimated to have In 2003 over $300B was estimated to have
been sent from developed to developing been sent from developed to developing countriescountries
Remittances is the second largest source Remittances is the second largest source behind FDI of external funding for developing behind FDI of external funding for developing countries.countries.
A recent survey indicates that only 6% of the A recent survey indicates that only 6% of the remittances sent by the Diaspora is investedremittances sent by the Diaspora is invested
Obstacles facing Obstacles facing African DiasporaAfrican Diaspora The lack of awareness and The lack of awareness and
information on investment information on investment opportunitiesopportunities
Investment in Africa needs to be Investment in Africa needs to be positively challenged to create positively challenged to create economic growth for Africaeconomic growth for Africa
Situation in KenyaSituation in Kenya
Due to unemployment/underemployment of Due to unemployment/underemployment of highly educated Kenyans many have migrated highly educated Kenyans many have migrated outwards in such of opportunitiesoutwards in such of opportunities
There has been an increase of remittance There has been an increase of remittance coming into the country from the Kenyan coming into the country from the Kenyan DiasporaDiaspora
There is significant potential for the There is significant potential for the optimization of remittance from the Diaspora optimization of remittance from the Diaspora through a number of initiatives by the through a number of initiatives by the government, the Diaspora themselves and the government, the Diaspora themselves and the local communitylocal community
IPC interest in IPC interest in Diaspora remittanceDiaspora remittance Remittance flows are second Remittance flows are second
largest source behind FDI of largest source behind FDI of external funding for developing external funding for developing countriescountries
They are one of the least volatile They are one of the least volatile sources of foreign exchange for sources of foreign exchange for developing countriesdeveloping countries
They are expected to rise They are expected to rise significantly in the long termsignificantly in the long term
Mandate of IPCMandate of IPC
Promote and Facilitate investments in KenyaPromote and Facilitate investments in Kenya Assist foreign and local investors and potential Assist foreign and local investors and potential
investors by;investors by;
• issuing investment certificateissuing investment certificate• assisting in acquiring any necessary licensesassisting in acquiring any necessary licenses• assisting in obtaining incentivesassisting in obtaining incentives• providing information on investment opportunities, providing information on investment opportunities,
sources of capital, etcsources of capital, etc Promote investment opportunities both locally and Promote investment opportunities both locally and
internationallyinternationally Review the investment environment and make Review the investment environment and make
recommendations to the Governmentrecommendations to the Government• changes to promote and facilitate investmentchanges to promote and facilitate investment• changes to licensing requirementschanges to licensing requirements
VisionVision““To be a world class agency in To be a world class agency in
marketing Kenya as the first choice marketing Kenya as the first choice investment destination”investment destination”
MissionMission““To provide exceptional services to To provide exceptional services to
attract, facilitate and retain attract, facilitate and retain investments in Kenya”investments in Kenya”
Investment ProcedureInvestment Procedure
Registration of business by the Registration of business by the Registrar of Companies Registrar of Companies
Under Companies Act or Business Names ActUnder Companies Act or Business Names Act
Application for approval of Application for approval of investments are submitted to investments are submitted to Investment Promotion Centre Investment Promotion Centre (IPC)(IPC)
Investment procedure.... Investment procedure.... ContCont
Approval is based on security, health and Approval is based on security, health and environmental requirementsenvironmental requirements Within ten working days after receipt of application, a Within ten working days after receipt of application, a
written report on application is prepared.written report on application is prepared. Within five working days after report is prepared, a Within five working days after report is prepared, a
decision with respect to the application is made.decision with respect to the application is made. Within five working days after the decision is made, the Within five working days after the decision is made, the
applicant is informed in writing of the decision.applicant is informed in writing of the decision. Issuance of Certificate of General AuthorityIssuance of Certificate of General Authority
If, in the unlikely event, the application is If, in the unlikely event, the application is refused:refused: Written reasons shall be preparedWritten reasons shall be prepared Within five days after the decision is made, the Minister Within five days after the decision is made, the Minister
is informed with a copy of the application, a copy of is informed with a copy of the application, a copy of report on application and a copy of reasonsreport on application and a copy of reasons
Investment procedure... Investment procedure... ContCont
ComplaintComplaint
• If the application does not receive response within If the application does not receive response within twenty five days, he/she can make a written twenty five days, he/she can make a written complaint to the Ministercomplaint to the Minister
• The Minister shall investigate the complaint and The Minister shall investigate the complaint and within fifteen days inform the applicant of the within fifteen days inform the applicant of the results of the investigationresults of the investigation
Entry Permits (Work Permits)Entry Permits (Work Permits)
Approval by an Interministerial Approval by an Interministerial CommitteeCommittee
• IPC is a member of the CommitteeIPC is a member of the Committee• Three Class A (employee) Entry PermitsThree Class A (employee) Entry Permits• Assured three Class H (investor) Entry PermitsAssured three Class H (investor) Entry Permits• Additional Entry Permits on meritAdditional Entry Permits on merit
LicensingLicensing
Trade License from the Ministry of Trade & Trade License from the Ministry of Trade & Industry (free)Industry (free)
Single Business Permit from Local Authority Single Business Permit from Local Authority (fee payable)(fee payable)
Restricted operations require licensesRestricted operations require licenses Under the National Environment Under the National Environment
Management Act, full or partial Management Act, full or partial environmental impact assessment licenseenvironmental impact assessment license
Support to investorsSupport to investors
IPC will facilitate all the wayIPC will facilitate all the way
• ApprovalApproval• Identification of licenses requiredIdentification of licenses required• Acquisition of the necessary licensesAcquisition of the necessary licenses
Investors are advised to go through Investors are advised to go through IPCIPC
Government inputGovernment input
Eradication of corruption and the Eradication of corruption and the institutionalization of clear legal protection thus institutionalization of clear legal protection thus sustain a robust climate for increased FDIsustain a robust climate for increased FDI
Design policies to make the transfer of Design policies to make the transfer of remittances more cost effective in poverty remittances more cost effective in poverty reductionreduction
Integration of members of Diaspora Integration of members of Diaspora communities in the labour marketcommunities in the labour market
Promote regularization of legal status, Promote regularization of legal status, credentialing, training, language acquisition to credentialing, training, language acquisition to build capacity of Diaspora communitybuild capacity of Diaspora community
Government Government input......Continput......Cont Develop national programmes providing Develop national programmes providing
investment guarantees to the Diasporainvestment guarantees to the Diaspora Effort should be put on lowering transaction Effort should be put on lowering transaction
costs, improving data collection, extending costs, improving data collection, extending the availability of financial services to the the availability of financial services to the poor people and rural areaspoor people and rural areas
Encourage collective remittances to Encourage collective remittances to support community development and support community development and employment generationemployment generation
Sponsor research on patents and uses of Sponsor research on patents and uses of remittancesremittances
Government Government input......Continput......Cont Create a government body with a sole Create a government body with a sole
focus of acting as a liaison between focus of acting as a liaison between Kenya and its DiasporaKenya and its Diaspora
Kenya’s Investment Promotion Centre Kenya’s Investment Promotion Centre would be delighted to accomplish this would be delighted to accomplish this rolerole
Introduction of legislation to grant dual Introduction of legislation to grant dual citizenship to Kenyan Diasporacitizenship to Kenyan Diaspora
Introduction of international Introduction of international government bonds with central bank government bonds with central bank guarantee targeted at Kenyan Diasporaguarantee targeted at Kenyan Diaspora
Government Government input......Continput......Cont IPC in conjunction with the government is in IPC in conjunction with the government is in
the process of formulating specific incentives the process of formulating specific incentives to attract remittance from Kenyan/Africans to attract remittance from Kenyan/Africans abroadabroad
The investment code in Parliament will go The investment code in Parliament will go along way to improving the investment along way to improving the investment environment in Kenyaenvironment in Kenya
NEPAD peer group system, CCIA, EAC model NEPAD peer group system, CCIA, EAC model investment code will improve the situation investment code will improve the situation even furthereven further
Several bilateral investment treaties have Several bilateral investment treaties have been signed between Kenya and other been signed between Kenya and other countries for the protection and promotion of countries for the protection and promotion of investmentinvestment
Where can the Diaspora Where can the Diaspora invest in Kenya?invest in Kenya?
Stocks/bonds-safest but returns Stocks/bonds-safest but returns are a bit low right noware a bit low right now
Real estate-invest Kshs. 30 Million Real estate-invest Kshs. 30 Million recoup your investment in 5-6 recoup your investment in 5-6 yearsyears
Services- Education, Health, ICT, Services- Education, Health, ICT, Insurance & Banking and TradeInsurance & Banking and Trade
THEREFORE,in THEREFORE,in conclusionconclusion
If one is now looking for and expecting a If one is now looking for and expecting a country where:country where:
investments are guaranteedinvestments are guaranteed there is good quality of life in Africathere is good quality of life in Africa there is liberalized and stable economic there is liberalized and stable economic
atmosphereatmosphere donor support is withheld and is still able to donor support is withheld and is still able to
stand on its feetstand on its feet there are abundant natural resourcesthere are abundant natural resources
there is readily available highly trained there is readily available highly trained and affordable manpowerand affordable manpower
there is access to regional and there is access to regional and international marketsinternational markets
there is fairly well developed infrastructure there is fairly well developed infrastructure in the regionin the region
there is ‘One Stop Centre’ facility for there is ‘One Stop Centre’ facility for project processing.project processing.
Then,Then,KENYA IS IDEALKENYA IS IDEAL
THANK YOU-KWAHERI-KARIBU KENYA!THANK YOU-KWAHERI-KARIBU KENYA!
Contact usContact us
MANAGING DIRECTORMANAGING DIRECTORINVESTMENT PROMOTION CENTREINVESTMENT PROMOTION CENTRENATIONAL BANK BUILDING, 8NATIONAL BANK BUILDING, 8THTH
FLOOR,HARAMBEE AVENUEFLOOR,HARAMBEE AVENUEP.O. BOX 55704 NAIROBI, CITY SQUARE, 00200, P.O. BOX 55704 NAIROBI, CITY SQUARE, 00200,
KENYAKENYATEL: (254) (020) 221401TEL: (254) (020) 221401MOBILE: 0722-205424 / 0733-601184MOBILE: 0722-205424 / 0733-601184FAX: (254) (202) 243862FAX: (254) (202) 243862E-MAIL: E-MAIL: [email protected]@investmentkenya.comWebsite: www.investmentkenya.comWebsite: www.investmentkenya.com