Nipate
Forum => Kenya Discussion => Topic started by: RV Pundit on March 07, 2018, 03:24:07 PM
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I was speaking to someone and he intimated they get - cheap & really easy financing deals from their mother country - mostly on machinery & equipment & vehicles (ugly Tatas) - and have build a distribution network - retail - of felow Asians. They also take advantage of all these "EPZ" - 5 yr tax holidays and the works.
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I also think the culture of cottage industries runs back several generations so they are more at ease with setting up plants and factories plus they have ready expertise from back home.
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An Indian friend once told me his dad was shopping for cheap used factories in South America to set up in Zambia. It seems like they have well established global networks.
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I think all these facilities, supply chain or ecosystem are available to Kenyans & Africans. The winning factor is a culture of excellence - what we call "mean" or "racist" is just a small bit of it. Mhindi really runs a tight ship - which someone inept or indolent will mistake as racist or mean. Rehabilitate and setup in deadbeat building, bargaining for cheapest supplies, slavish labor, bribe GoK for tax favors, etc.
I was speaking to someone and he intimated they get - cheap & really easy financing deals from their mother country - mostly on machinery & equipment & vehicles (ugly Tatas) - and have build a distribution network - retail - of felow Asians. They also take advantage of all these "EPZ" - 5 yr tax holidays and the works.
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The alcohol drinking culture and the tender culture. The muhindi rarely drink silly thus are able to run/supervise the machines 24-7 unlike Mwafrika owners.
Once a Mwafrika gets a machine running he will spend nights drinking even the monies meant for raw materials. Have seen in it in Ruiru - it is foolish. The machines don't run for long.
Tied to silly drinking is the tender culture where you get more monies supplying air than the products. It doesn't make sense to invest in endless stress, raw materials and labour while you can supply air. When supplying air all you need is the LPO and make a few calls from your reserved bar stool.
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I was speaking to someone and he intimated they get - cheap & really easy financing deals from their mother country - mostly on machinery & equipment & vehicles (ugly Tatas) - and have build a distribution network - retail - of felow Asians. They also take advantage of all these "EPZ" - 5 yr tax holidays and the works.
Simply Asians are better risk takers than africans. Machines are readily available very cheaply but an african is more likely to invest in real estate, farm or hotel than invest 5m on a machinery. Companies like bidco,chandaria started very small as actually dukawallas then they invested in manufacturing. Investing in manufacturing to create a brand is a little more complicated than real estate. Basically any idiot with money can invest in real estate which is what most africans invest in cause its easier and supposedly "risk free" but manufacturing, technology etc are riskier but with better returns. And also one of the more differentiating aspect between asians and africans is focus. An asian manufacturer will do one thing really well but an african will be allover the place.
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Simply Asians are better risk takers than africans. Machines are readily available very cheaply but an african is more likely to invest in real estate, farm or hotel than invest 5m on a machinery. Companies like bidco,chandaria started very small as actually dukawallas then they invested in manufacturing. Investing in manufacturing to create a brand is a little more complicated than real estate. Basically any idiot with money can invest in real estate which is what most africans invest in cause its easier and supposedly "risk free" but manufacturing, technology etc are riskier but with better returns. And also one of the more differentiating aspect between asians and africans is focus. An asian manufacturer will do one thing really well but an african will be allover the place.
CULTURE in a word. Due diligence, focus, integrity, sobriety, etc.
Note the passing on capital, skill, enterprise generation to generation via inheritance. Most of the big companies are run by 3rd generation scions. Mhindi runs family business and is no lone ranger. They have caste, etc but at the family unit things business are really tight, neat and organized.
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Simply Asians are better risk takers than africans. Machines are readily available very cheaply but an african is more likely to invest in real estate, farm or hotel than invest 5m on a machinery. Companies like bidco,chandaria started very small as actually dukawallas then they invested in manufacturing. Investing in manufacturing to create a brand is a little more complicated than real estate. Basically any idiot with money can invest in real estate which is what most africans invest in cause its easier and supposedly "risk free" but manufacturing, technology etc are riskier but with better returns. And also one of the more differentiating aspect between asians and africans is focus. An asian manufacturer will do one thing really well but an african will be allover the place.
CULTURE in a word. Due diligence, focus, integrity, sobriety, etc.
Note the passing on capital, skill, enterprise generation to generation via inheritance. Most of the big companies are run by 3rd generation scions. Mhindi runs family business and is no lone ranger. They have caste, etc but at the family unit things business are really tight, neat and organized.
This is something we overlook. When you have generations and an environment of manufacturing, it’s far much easier for you to jump in.
The only other reason every negro is rushing into real estate is because virtually every negro is in it.
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Simply Asians are better risk takers than africans. Machines are readily available very cheaply but an african is more likely to invest in real estate, farm or hotel than invest 5m on a machinery. Companies like bidco,chandaria started very small as actually dukawallas then they invested in manufacturing. Investing in manufacturing to create a brand is a little more complicated than real estate. Basically any idiot with money can invest in real estate which is what most africans invest in cause its easier and supposedly "risk free" but manufacturing, technology etc are riskier but with better returns. And also one of the more differentiating aspect between asians and africans is focus. An asian manufacturer will do one thing really well but an african will be allover the place.
CULTURE in a word. Due diligence, focus, integrity, sobriety, etc.
Note the passing on capital, skill, enterprise generation to generation via inheritance. Most of the big companies are run by 3rd generation scions. Mhindi runs family business and is no lone ranger. They have caste, etc but at the family unit things business are really tight, neat and organized.
This is something we overlook. When you have generations and an environment of manufacturing, it’s far much easier for you to jump in.
The only other reason every negro is rushing into real estate is because virtually every negro is in it.
Part why I prefer a marxist approach - complete with a 5-10- yr marshal plans - than the equality method. Development is darwinian - with hard, cold factors - than what's best for individuals. The state can and should impose a development culture... cos in the 3rd world democracy and laissez-faire are a roadmap to nowhere.
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Simply Asians are better risk takers than africans. Machines are readily available very cheaply but an african is more likely to invest in real estate, farm or hotel than invest 5m on a machinery. Companies like bidco,chandaria started very small as actually dukawallas then they invested in manufacturing. Investing in manufacturing to create a brand is a little more complicated than real estate. Basically any idiot with money can invest in real estate which is what most africans invest in cause its easier and supposedly "risk free" but manufacturing, technology etc are riskier but with better returns. And also one of the more differentiating aspect between asians and africans is focus. An asian manufacturer will do one thing really well but an african will be allover the place.
CULTURE in a word. Due diligence, focus, integrity, sobriety, etc.
Note the passing on capital, skill, enterprise generation to generation via inheritance. Most of the big companies are run by 3rd generation scions. Mhindi runs family business and is no lone ranger. They have caste, etc but at the family unit things business are really tight, neat and organized.
This is very true. Once I met an asian in London whose business specialised in transferring family businesses from one generation to the next.
Also the culture of planed machine maintenance, precision manufacturing and quality control come into it.
The maize fiasco at NCPB depots in north rift exposed us... at what point should we have realised that there was too much maize? Surely not at the factory gate..heck not even at the farm gate.
As a maize farmer in the region, we produce roughly the same amount every year, there was nothing extra ordinary last year. I think it was a case of not enough money as opposed to too much maize.
These thieving bastards will finish our beloved nation.
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Part why I prefer a marxist approach - complete with a 5-10- yr marshal plans - than the equality method. Development is darwinian - with hard, cold factors - than what's best for individuals. The state can and should impose a development culture... cos in the 3rd world democracy and laissez-faire are a roadmap to nowhere.
I thought you were libertarian? Controlled planning of economy would fail in kenya because the incompetence of the planners and executors. Areas where the government has some influence are failing miserably where sectors that are market driven doing fairly well case in point horticulture. Look at NCPB a monopoly that has ensured that maize productivity per acre hasn't increased because the real market doesn't set the price and thus inhibiting productivity to produce maize at the correct market price. We've tried this government influence in economy for 50yrs and it hasn't worked.
On asians, africans who are already exposed to different cultures or perhaps their parents invested in real estate they should be the ones leading the diversification into other sectors like manufacturing, hightech farming, technology etc. The problem is, this isn't happening as much it should. People are content on just living in the suburbs and driving big vehicles but not to conquer the world. Just my humble opinion.
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Part why I prefer a marxist approach - complete with a 5-10- yr marshal plans - than the equality method. Development is darwinian - with hard, cold factors - than what's best for individuals. The state can and should impose a development culture... cos in the 3rd world democracy and laissez-faire are a roadmap to nowhere.
I thought you were libertarian? Controlled planning of economy would fail in kenya because the incompetence of the planners and executors. Areas where the government has some influence are failing miserably where sectors that are market driven doing fairly well case in point horticulture. Look at NCPB a monopoly that has ensured that maize productivity per acre hasn't increased because the real market doesn't set the price and thus inhibiting productivity to produce maize at the correct market price. We've tried this government influence in economy for 50yrs and it hasn't worked.
On asians, africans who are already exposed to different cultures or perhaps their parents invested in real estate they should be the ones leading the diversification into other sectors like manufacturing, hightech farming, technology etc. The problem is, this isn't happening as much it should. People are content on just living in the suburbs and driving big vehicles but not to conquer the world. Just my humble opinion.
I am a pragmatist. Libertarian works where the culture is evolved. Our culture is rudimentary and the Average Joe is unsophisticated; You have said this yourself. In this scenario benevolent dictatorship is better which is marxist, not libertarian. This is my rationale and not dogmatic "principles" like Kichwa et al.
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Ohh pliz. Almost anybody can claim they are pragmatists. Its a catch-all phrase. Ain't we all pragmatists in one way or the other?
Part why I prefer a marxist approach - complete with a 5-10- yr marshal plans - than the equality method. Development is darwinian - with hard, cold factors - than what's best for individuals. The state can and should impose a development culture... cos in the 3rd world democracy and laissez-faire are a roadmap to nowhere.
I thought you were libertarian? Controlled planning of economy would fail in kenya because the incompetence of the planners and executors. Areas where the government has some influence are failing miserably where sectors that are market driven doing fairly well case in point horticulture. Look at NCPB a monopoly that has ensured that maize productivity per acre hasn't increased because the real market doesn't set the price and thus inhibiting productivity to produce maize at the correct market price. We've tried this government influence in economy for 50yrs and it hasn't worked.
On asians, africans who are already exposed to different cultures or perhaps their parents invested in real estate they should be the ones leading the diversification into other sectors like manufacturing, hightech farming, technology etc. The problem is, this isn't happening as much it should. People are content on just living in the suburbs and driving big vehicles but not to conquer the world. Just my humble opinion.
I am a pragmatist. Libertarian works where the culture is evolved. Our culture is rudimentary and the Average Joe is unsophisticated; You have said this yourself. In this scenario benevolent dictatorship is better which is marxist, not libertarian. This is my rationale and not dogmatic "principles" like Kichwa et al.
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Okay I'm a realist, philosophically speaking. I am not very political.
I agree anyone can be pragmatist; there is actually a Mr "Pragmatic" right here - a "new" member - who I suspect is Omollo.
Ohh pliz. Almost anybody can claim they are pragmatists. Its a catch-all phrase. Ain't we all pragmatists in one way or the other?
Part why I prefer a marxist approach - complete with a 5-10- yr marshal plans - than the equality method. Development is darwinian - with hard, cold factors - than what's best for individuals. The state can and should impose a development culture... cos in the 3rd world democracy and laissez-faire are a roadmap to nowhere.
I thought you were libertarian? Controlled planning of economy would fail in kenya because the incompetence of the planners and executors. Areas where the government has some influence are failing miserably where sectors that are market driven doing fairly well case in point horticulture. Look at NCPB a monopoly that has ensured that maize productivity per acre hasn't increased because the real market doesn't set the price and thus inhibiting productivity to produce maize at the correct market price. We've tried this government influence in economy for 50yrs and it hasn't worked.
On asians, africans who are already exposed to different cultures or perhaps their parents invested in real estate they should be the ones leading the diversification into other sectors like manufacturing, hightech farming, technology etc. The problem is, this isn't happening as much it should. People are content on just living in the suburbs and driving big vehicles but not to conquer the world. Just my humble opinion.
I am a pragmatist. Libertarian works where the culture is evolved. Our culture is rudimentary and the Average Joe is unsophisticated; You have said this yourself. In this scenario benevolent dictatorship is better which is marxist, not libertarian. This is my rationale and not dogmatic "principles" like Kichwa et al.
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I am a pragmatist. Libertarian works where the culture is evolved. Our culture is rudimentary and the Average Joe is unsophisticated; You have said this yourself. In this scenario benevolent dictatorship is better which is marxist, not libertarian. This is my rationale and not dogmatic "principles" like Kichwa et al.
What if the leader is "unsophisticated" just like regular joe? I feel that we really don't have free enterprise system(at least as free as it should be) which is inhibiting growth but at the same time we need to be creating companies that can scale, that's the main thing.
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I am a pragmatist. Libertarian works where the culture is evolved. Our culture is rudimentary and the Average Joe is unsophisticated; You have said this yourself. In this scenario benevolent dictatorship is better which is marxist, not libertarian. This is my rationale and not dogmatic "principles" like Kichwa et al.
What if the leader is "unsophisticated" just like regular joe? I feel that we really don't have free enterprise system(at least as free as it should be) which is inhibiting growth but at the same time we need to be creating companies that can scale, that's the main thing.
Considering the law of averages - its much easier to get a single outlier in a great leader - than the critical mass of industrious folks needed to develop. The Average Joe... what law of environment stops enterprise from building enterprise? which somehow favors the Indian 8) All your examples are from agriculture or real estate 8) Kenya is an open society - capitalist since colonial times - no socialism like Ethiopia or TZ. For now we are planning manufacturing yet robots & automation are here - where will the jobs come from? We can't have 1940 factories with millions of workers anymore.
As soon as China beats the mid-income chasm it will go more liberal: for now Xi Jin Ping is the new visionary who just extended his term - which is an economic lever.
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Considering the law of averages - its much easier to get a single outlier in a great leader - than the critical mass of industrious folks needed to develop. The Average Joe... what law of environment stops enterprise from building enterprise? which somehow favors the Indian 8) All your examples are from agriculture or real estate 8) Kenya is an open society - capitalist since colonial times - no socialism like Ethiopia or TZ. For now we are planning manufacturing yet robots & automation are here - where will the jobs come from? We can't have 1940 factories with millions of workers anymore.
As soon as China beats the mid-income chasm it will go more liberal: for now Xi Jin Ping is the new visionary who just extended his term - which is an economic lever.
I am not making excuses for africans, we aren't investing into the future or venturing to businesses that can scale. However government can help or hurt economy by either taxing too much, deficits that drive high interest or crazy regulations. The point is even indians would be crushing it more if we did something about scope size of government. The good thing of not having legacy systems we can leap forward to robots and automation just like bangladesh is doing https://www.wsj.com/articles/the-robots-are-coming-for-garment-workers-thats-good-for-the-u-s-bad-for-poor-countries-1518797631 since already we aren't even cheap labour countries like ethiopia.
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The risk aversion - and maybe the housing deficit - makes building apartment the in-thing. If GOK was to step in big time and build really crazy housing estates - and drive the price down - that would be disincentive to invest in more productive sectors like manufacturing. The same can be replayed in transport - matatus - where Mwafrika likes to invest in. And of course farming.
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Low productivity is our core problem which has led to high poverty levels. A good article here https://www.economist.com/news/middle-east-and-africa/21738911-africas-economic-paradox-why-africas-poor-pay-high-prices.
“WE FEEL so hungry,” says Agatha Khasiala, a Kenyan housekeeper, grumbling about the price of meat and fish. She has recently moved in with her daughter because “the cost of everything is very high”. The data back her up. The World Bank publishes rough estimates of price levels in different countries, showing how far a dollar would stretch if converted into local currency. On this measure, Kenya is more expensive than Poland.
This is surprising. The cost of living is generally higher in richer places, a phenomenon best explained by the economists Bela Balassa and Paul Samuelson. They distinguished between goods that can be traded internationally and many services, like hairdressing, that cannot. In rich countries, manufacturing is highly productive, allowing firms to pay high wages and still charge internationally competitive prices. Those high wages also drive up pay in services, which must compete for workers. Since productivity is low in services, high pay translates into high prices, pushing up the overall cost of living.
Among developing economies, however, the relationship between prices and prosperity is less clear-cut. Prices in Chad, for instance, are comparable to those in Malaysia, where incomes are 14 times higher. Fadi Hassan of Trinity College Dublin finds that in the poorest fifth of countries, most of them in Africa, the relationship goes into reverse: penniless places cost more than slightly richer ones. A paper in 2015 from the Centre for Global Development (CGD), an American think-tank, accounts for various factors which could explain differences in prices, including state subsidies, geography and the effects of foreign aid. Even then, African countries are puzzlingly expensive.
One explanation is dodgy statistics. African countries may be richer than they seem. When Nigeria revised its figures in 2014 to start counting industries such as mobile phones, GDP almost doubled. They may also be less pricey than economists reckon, because poor people buy second-hand clothes or grow their own food.
A more intriguing explanation comes from food prices. The relative cost of food, compared with other goods, is higher in poor countries. In Africa, the absolute cost is sometimes high, too. Nigerians would save 30% of their income if they bought their food at Indian prices, finds a recent study by the OECD, a think-tank. Meat costs more in Ghana than in America.
Mr Hassan thinks that low agricultural productivity explains the puzzle. In much of Africa farmers scratch away at thin soils, with little fertiliser and no irrigation. An Asian-style Green Revolution is only slowly taking root. Weak infrastructure also drives up prices, as can be seen in Wakulima, a wholesale food market in Nairobi. Moses Mungai has driven a maize lorry for four hours to get here, from a border town in the foothills of Kilimanjaro. But he says it took four days to collect the crop from local farms. When the rains come he has to hire a tractor to navigate soupy roads. Counties charge levies on commodities passing through. Middlemen take a cut.
Whereas Balassa and Samuelson divided economies into two (manufacturing and services), Mr Hassan divides economies into three, by also distinguishing agriculture. Like manufacturing, agricultural productivity can grow vigorously. But like services, this fresh farm output is sold locally, he assumes, which drives down prices. Thus when farm productivity rises, the poorest countries become both richer and cheaper.
The CGD researchers note an interesting corollary: manufacturing wages in Africa, though low, are higher than in Asian countries at similar levels of income. African workers need more dough to buy their daily bread.
If that is right, then cheaper food may boost manufacturing by making wages more competitive. From 18th-century Britain to 20th-century Asia, industrial revolutions are often preceded by agrarian ones. Poor countries must hope for a repeat.
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Interesting article. I think they nailed it.The solution is to apply 5-10 times the fertilizers will apply to our soils and to engage in large scale irrigation schemes. What they miss is that outside Africa and maybe Asia - most of argicluture is large scale - here in Africa we need to find profitable small-holder models - like KTDA.
Low productivity is our core problem which has led to high poverty levels. A good article here https://www.economist.com/news/middle-east-and-africa/21738911-africas-economic-paradox-why-africas-poor-pay-high-prices.
“WE FEEL so hungry,” says Agatha Khasiala, a Kenyan housekeeper, grumbling about the price of meat and fish. She has recently moved in with her daughter because “the cost of everything is very high”. The data back her up. The World Bank publishes rough estimates of price levels in different countries, showing how far a dollar would stretch if converted into local currency. On this measure, Kenya is more expensive than Poland.
This is surprising. The cost of living is generally higher in richer places, a phenomenon best explained by the economists Bela Balassa and Paul Samuelson. They distinguished between goods that can be traded internationally and many services, like hairdressing, that cannot. In rich countries, manufacturing is highly productive, allowing firms to pay high wages and still charge internationally competitive prices. Those high wages also drive up pay in services, which must compete for workers. Since productivity is low in services, high pay translates into high prices, pushing up the overall cost of living.
Among developing economies, however, the relationship between prices and prosperity is less clear-cut. Prices in Chad, for instance, are comparable to those in Malaysia, where incomes are 14 times higher. Fadi Hassan of Trinity College Dublin finds that in the poorest fifth of countries, most of them in Africa, the relationship goes into reverse: penniless places cost more than slightly richer ones. A paper in 2015 from the Centre for Global Development (CGD), an American think-tank, accounts for various factors which could explain differences in prices, including state subsidies, geography and the effects of foreign aid. Even then, African countries are puzzlingly expensive.
One explanation is dodgy statistics. African countries may be richer than they seem. When Nigeria revised its figures in 2014 to start counting industries such as mobile phones, GDP almost doubled. They may also be less pricey than economists reckon, because poor people buy second-hand clothes or grow their own food.
A more intriguing explanation comes from food prices. The relative cost of food, compared with other goods, is higher in poor countries. In Africa, the absolute cost is sometimes high, too. Nigerians would save 30% of their income if they bought their food at Indian prices, finds a recent study by the OECD, a think-tank. Meat costs more in Ghana than in America.
Mr Hassan thinks that low agricultural productivity explains the puzzle. In much of Africa farmers scratch away at thin soils, with little fertiliser and no irrigation. An Asian-style Green Revolution is only slowly taking root. Weak infrastructure also drives up prices, as can be seen in Wakulima, a wholesale food market in Nairobi. Moses Mungai has driven a maize lorry for four hours to get here, from a border town in the foothills of Kilimanjaro. But he says it took four days to collect the crop from local farms. When the rains come he has to hire a tractor to navigate soupy roads. Counties charge levies on commodities passing through. Middlemen take a cut.
Whereas Balassa and Samuelson divided economies into two (manufacturing and services), Mr Hassan divides economies into three, by also distinguishing agriculture. Like manufacturing, agricultural productivity can grow vigorously. But like services, this fresh farm output is sold locally, he assumes, which drives down prices. Thus when farm productivity rises, the poorest countries become both richer and cheaper.
The CGD researchers note an interesting corollary: manufacturing wages in Africa, though low, are higher than in Asian countries at similar levels of income. African workers need more dough to buy their daily bread.
If that is right, then cheaper food may boost manufacturing by making wages more competitive. From 18th-century Britain to 20th-century Asia, industrial revolutions are often preceded by agrarian ones. Poor countries must hope for a repeat.
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Which is more government control not less. hk doesn't get this. It's the liberal democracy mistake where semi-literate Africans are expected to make clever choices like Americans. Freedom is a function of the economy. We see this in China's one-child policy and mass application of eminent domain last couple of decades. Millions of folks kicked out of SEZ's and coastal towns; slavish labor and trade unions banned; etc. While democratic India has lagged behind. This is my reason for backing a strong Jubilee under a savvy Ruto. Not per se my love of the man.
Interesting article. I think they nailed it.The solution is to apply 5-10 times the fertilizers will apply to our soils and to engage in large scale irrigation schemes. What they miss is that outside Africa and maybe Asia - most of argicluture is large scale - here in Africa we need to find profitable small-holder models - like KTDA.
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Which is more government control not less. hk doesn't get this. It's the liberal democracy mistake where semi-literate Africans are expected to make clever choices like Americans. Freedom is a function of the economy. We see this in China's one-child policy and mass application of eminent domain last couple of decades. Millions of folks kicked out of SEZ's and coastal towns; slavish labor and trade unions banned; etc. While democratic India has lagged behind. This is my reason for backing a strong Jubilee under a savvy Ruto. Not per se my love of the man.
I don't care about democracy robina. What I care about is economic freedom. The libertarian aspect of it. Ruto and uhuru(little exaggeration) abhor economic freedom, they like to control everything. Its evident in the way the e.g dairy board harasses milk vendors among other things.
China is doing better than india cause they have a freer economy. Pinochet in chile was a dictator but he unleashed economic freedom that underpins chile economy even today making chile the richest country in latin america per capita. Venezuela with more resources is much poorer than chile , no wonder they rank much lower than chile in economic index. Democracy matters little in terms of economic development and there's no direct correlation.
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I don't care about democracy robina. What I care about is economic freedom. The libertarian aspect of it. Ruto and uhuru(little exaggeration) abhor economic freedom, they like to control everything. Its evident in the way the e.g dairy board harasses milk vendors among other things.
China is doing better than india cause they have a freer economy. Pinochet in chile was a dictator but he unleashed economic freedom that underpins chile economy even today making chile the richest country in latin america per capita. Venezuela with more resources is much poorer than chile , no wonder they rank much lower than chile in economic index. Democracy matters little in terms of economic development and there's no direct correlation.
Two things.
Libertarianism should not be conflated with good planning. The economic freedom you note in China (relative to India) is a temporary choice the almighty state has made under present circumstances. Should the environment change the state would impose any policy for the greater good of the people's republic. No liberty.
Economy and democracy are closely related. Consider these economic levers and tell me how they relate to democracy: a) One-child policy vs individual choice of sire b) Eminent domain vs property rights c) Labor cost vs worker rights and unionism.
China is not libertarian. We can argue Jubilee or Ruto merits but The Party is king in China.
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If there is one sector that seem we've nailed it; then it got to be cemment; from days of Bamburi monopolising the market - to now when Bahindis have turned it upside now. Now cement at retail price is 510 - and it could even go further down if Dangote and likes could take advantage of Kitui coal and limestone.
https://www.nation.co.ke/business/IFC-commits-Sh9-7-billion-in-National-Cement-expansion/996-4371262-5dli3hz/index.html
The retail price of a 50-kilogramme bag of cement in Kenya, for instance, has dropped to lows of Sh510 from highs of Sh740 in 2008.
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This is not nailed because it saps resources - together with farming - from manufacturing. Would GoK manage housing efficiently? better than the private sector? That is the question and hk's protests that GoK must keep off totally. When we get the balance of promoting growth in the right sectors while escaping the public service incompetence then we will have nailed it. Areas like ICT/telcos flourished once the mediocre GoK-run Telkom and KCB lost monopoly... without creating a negative side effect.
If there is one sector that seem we've nailed it; then it got to be cemment; from days of Bamburi monopolising the market - to now when Bahindis have turned it upside now. Now cement at retail price is 510 - and it could even go further down if Dangote and likes could take advantage of Kitui coal and limestone.
https://www.nation.co.ke/business/IFC-commits-Sh9-7-billion-in-National-Cement-expansion/996-4371262-5dli3hz/index.html
The retail price of a 50-kilogramme bag of cement in Kenya, for instance, has dropped to lows of Sh510 from highs of Sh740 in 2008.
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Two things.
Libertarianism should not be conflated with good planning. The economic freedom you note in China (relative to India) is a temporary choice the almighty state has made under present circumstances. Should the environment change the state would impose any policy for the greater good of the people's republic. No liberty.
Economy and democracy are closely related. Consider these economic levers and tell me how they relate to democracy: a) One-child policy vs individual choice of sire b) Eminent domain vs property rights c) Labor cost vs worker rights and unionism.
China is not libertarian. We can argue Jubilee or Ruto merits but The Party is king in China.
China does a very good job of not only planning but also ruthless execution of the plans. In essence China has followed japan but the government taking the lead role. Copying the west and domesticating technologies to catch up to the west. Though government companies dominate several industries they are relatively efficient to compete with private companies. The sheer competition is what makes chinese economy very competitive.
Conversely in Kenya, its clear government has been the problem irrespective who is heading it.
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If there is one sector that seem we've nailed it; then it got to be cemment; from days of Bamburi monopolising the market - to now when Bahindis have turned it upside now. Now cement at retail price is 510 - and it could even go further down if Dangote and likes could take advantage of Kitui coal and limestone.
https://www.nation.co.ke/business/IFC-commits-Sh9-7-billion-in-National-Cement-expansion/996-4371262-5dli3hz/index.html
The retail price of a 50-kilogramme bag of cement in Kenya, for instance, has dropped to lows of Sh510 from highs of Sh740 in 2008.
The global price of cement is about $50 to $70 per ton. We have along way to go though we have made strides. Ethiopia dangote plant was exporting cement to kenya despite poor roads connecting the two countries. The key is just more competition to drive down prices. The price of steel has been going up because there just a few companies in the business and heavy tax importation.
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Yeah and uhuru should focus on bring the cost down to 300shs per bag which help his big 4 plan on housing and also make our infrastucture cheaper..main bottleneck is cost of power and clinker which mostly imported.In addition we need more cement factories in kenya.