Author Topic: Ndii- Mwafrika gotta chart unorthodox transformation path  (Read 5199 times)

Offline gout

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Ndii- Mwafrika gotta chart unorthodox transformation path
« on: December 26, 2022, 03:16:35 PM »
Back to basics. Food first.


https://carnegieendowment.org/2022/12/20/africa-s-infrastructure-led-growth-experiment-is-faltering.-it-is-time-to-focus-on-agriculture-pub-88662
Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one ~ Thomas Paine

Offline RV Pundit

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #1 on: December 26, 2022, 05:43:33 PM »
I have read his article - and he makes lots of excellent point - however one thing that people miss when they talk about Asian export led model - SEA SEA SEA.

If you have access to large population and sea front - you can invest almost zero on infrastructure and thrive. This is where we have failed as kenyans because we turned our Mombasa/Lamu/Kwale into pristine tourist resorts instead of heavily populated and polluted industrial centers.

If you invest in manufacturing plant in Mombasa focussed on export - you only need a tractor to take your container to the port - maybe 10km away. Investment by Kenya gov and investors are almost zero.  All we need is a very efficient port.

That is Asian model.

When it come to hinterland - I am afraid things start becoming very very dicey - even for Asians, Chinese, Americans and everyone.

You simply need lots of money to make hinterland or middle belt US or  China or Mongolia make any economic sense. He should try farming in fertile congo and see how far he gets...without infrastructure.

Ndii has probably never farmed. I did farming myself - after high school - and I swore never to do it again - because after harvesting - I literally had no market for my one acre of cabbages and kales.

Kenya gov should prioritize development along coastline.....and try to shift people to the coastline. That would pay off very fast.

All you need is to buy large pieces of land few kilometeres from coastline - for manufacturing companies - then build ports

For kenya - all these excess labour should be in Lamu, Malindi, Kilifi, Mombasa and Kwale.

We should invest in Mombasa Dongo Kundu and Lamu EPZ - then encourage manufacturers to move there - and create EPZs,

But look at kenya - someone come and put EPZ in Athi River.


Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #2 on: December 26, 2022, 06:32:56 PM »
I have read his article - and he makes lots of excellent point - however one thing that people miss when they talk about Asian export led model - SEA SEA SEA.

If you have access to large population and sea front - you can invest almost zero on infrastructure and thrive. This is where we have failed as kenyans because we turned our Mombasa/Lamu/Kwale into pristine tourist resorts instead of heavily populated and polluted industrial centers.

If you invest in manufacturing plant in Mombasa focussed on export - you only need a tractor to take your container to the port - maybe 10km away. Investment by Kenya gov and investors are almost zero.  All we need is a very efficient port.

That is Asian model.

When it come to hinterland - I am afraid things start becoming very very dicey - even for Asians, Chinese, Americans and everyone.

You simply need lots of money to make hinterland or middle belt US or  China or Mongolia make any economic sense. He should try farming in fertile congo and see how far he gets...without infrastructure.

Ndii has probably never farmed. I did farming myself - after high school - and I swore never to do it again - because after harvesting - I literally had no market for my one acre of cabbages and kales.

Kenya gov should prioritize development along coastline.....and try to shift people to the coastline. That would pay off very fast.

All you need is to buy large pieces of land few kilometeres from coastline - for manufacturing companies - then build ports

For kenya - all these excess labour should be in Lamu, Malindi, Kilifi, Mombasa and Kwale.

We should invest in Mombasa Dongo Kundu and Lamu EPZ - then encourage manufacturers to move there - and create EPZs,

But look at kenya - someone come and put EPZ in Athi River.

(1) Export what?

(2) On your cabbages rotten.There is alot of increased investment in post harvest losses through cold room warehouses across East Africa.

Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #3 on: December 26, 2022, 06:38:08 PM »
Back to basics. Food first.


https://carnegieendowment.org/2022/12/20/africa-s-infrastructure-led-growth-experiment-is-faltering.-it-is-time-to-focus-on-agriculture-pub-88662

I hate anything Ndii writes or talks about.I would prefer he talks about Kenya not Africa as a whole.To be specific and hands on.

Like in Kenya,Ruto has a very good plan,Build nearly over 100 dams country wide..That's like 2 dams per county.It possible set up large scale grains and cereals farms especially in ASALS which have vast land and also connect these places with rails and roads.

That will create industries indirectly.

Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #4 on: December 26, 2022, 06:41:41 PM »
Any time you see government building roads rails dams and housing...there is alot of demand being created in steel cement,vehicle assembly,food industries etc... industries don't have necessarily have to be export driven.

Offline RV Pundit

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #5 on: December 26, 2022, 06:54:35 PM »
Export anything - EPZ is doing - import raw materials via port - add a little value - like stitching of shirts - then export.
Apart from few formally marketted crops - farming is hopeless.
The marketted crops are tea, dairy, coffee, sugarcane, some nuts and fruits.
If you try to farm other things - you're stuck with it.
Almost every month - kinagop people get stuck with their food - or feed them cows.
Now Nyandarua is very near Nairobi - imagine the rest of country
You get very dirty cheap prices hardly enough to cover expenses.

Agricluture is hopeless - generally

(1) Export what?

(2) On your cabbages rotten.There is alot of increased investment in post harvest losses through cold room warehouses across East Africa.

Offline RV Pundit

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #6 on: December 26, 2022, 07:06:04 PM »
Yes domestic manufacturing of course like kenya is doing now;
But for export manufacturing that will employ excess labour; you need more than that.
Any time you see government building roads rails dams and housing...there is alot of demand being created in steel cement,vehicle assembly,food industries etc... industries don't have necessarily have to be export driven.

Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #7 on: December 26, 2022, 07:12:32 PM »
Export anything - EPZ is doing - import raw materials via port - add a little value - like stitching of shirts - then export.
Apart from few formally marketted crops - farming is hopeless.
The marketted crops are tea, dairy, coffee, sugarcane, some nuts and fruits.
If you try to farm other things - you're stuck with it.
Almost every month - kinagop people get stuck with their food - or feed them cows.
Now Nyandarua is very near Nairobi - imagine the rest of country
You get very dirty cheap prices hardly enough to cover expenses.

Agricluture is hopeless - generally

(1) Export what?

(2) On your cabbages rotten.There is alot of increased investment in post harvest losses through cold room warehouses across East Africa.

(1) Please be specific.EXPORT WHAT?

Out of 195 in this world,I think over 100 countries or basically half the countries in the world have coastlines so Kenya doesn't have a monopoly of a coastline.Let us focus on economic sectors.In sectors like Agriculture Eg Sugar you have Brazil producing it,Wheat you have Ukraine Cereals you have I think USA Rice or Maize you have Pakistan and Asian countries so if it's agriculture Kenya has to focus on local not export....Look at a sector like textile and semi conductor industry you have big players in Asia.So the focus on export market doesn't make sense,that's why successive Kenyan governments sign trade deals with other nations.Give and take.America sells you Boeing,It gives you a small share of its textile under Agoa...If it's steel,China has dominated that industry.So Kenya needs to focus more on local market and not export markets.

(2) Farming.

Don't mix issues.There are two types of markets.The cash crop market of coffee tea pyrethrum sugar which depends on government intervention.The second market is perishable farm produce which has been neglected by Gov for a long time.Thats why we are having POST HARVEST INITIATIVES across East Africa like in the case of Twiga foods and ALP which your uncle Ruto invested 300MN.In simple sense,Twiga contracts thousands of farmers to plant bananas,Tomatoes and Potatoes,They look for customers,Store them in their warehouses.Basically there is a whole demand driven value chain being built across East Africa.

Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #8 on: December 26, 2022, 07:17:32 PM »
Yes domestic manufacturing of course like kenya is doing now;
But for export manufacturing that will employ excess labour; you need more than that.
Any time you see government building roads rails dams and housing...there is alot of demand being created in steel cement,vehicle assembly,food industries etc... industries don't have necessarily have to be export driven.

I think you should talk of SEZ not EPZ.

There are about 70,000 Kenyans employed in EPZ especially in textile export.Gov should ban mitumba,support local farmers to supply local industries to manufacture cotton and fibre clothes.I think more people would be absorbed in employment that way.Even in vehicle industries,gov should give trade facilitation and subsidies to local assemblers and manufacturers of things like tuk tuk and local vehicle while punishing imports,that way you create demand.

I think we have more Kenyans absorbed in employment today working in affordable housing directly and indirectly than in EPZ..so export market is overrated.

Offline RV Pundit

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #9 on: December 26, 2022, 09:04:35 PM »
1) Farming worlwide is loss making. Growing food is simpliest thing anyone can do. It will never make anyone rich. If we are interested in making our stomach full; yes let us farm. Dont be deluded it will make anyone rich. It called agargian economy

2) 80% of the world live along coastline. That is like 7 billion of the 8 billion. Therefore SEA is main trading route for many things. It's the internet of the real world. You want to be on the sea - with efficient port - then you can get 80% of the world market.

3) No country has developed from the hinterland. China started from Shenzen. Dubai from Dubai free port. Name them - they make money from the sea port - then expand inward.

4) Africa countries moved inward because of invasion from foreign forces during those years planes had not been discovered. Nairobi and Joburg are some of biggest cities worldwide outside any sea port. It's anomly to have a city as big as Nairobi or Joburg outside a large water body

5) The earth is blue - because water is 80% of it - that is what god has given you for free to use - for transport and anything - free - just build a ship or canoe - and slide over water. Anything else is expensive.

6) You need almost same infrastructure in rural agriculture as you need in rural manufacturing - and returns are very very doubtful. You cannot invest in farmers and leave the roads in such a poor condition or leave them without electricity - and talk post harvest. Those fridges are damn expensive...

7) Economies of scales/location/consoldiation is why we have SEZ/EPZ - and such - and they should ideally be near a sea or huge river (which kenya doesnt have - DRC have Congo river)

8) If you dont have sea like Uganda or Rwanda - focus on import substitution - and service industries. By time your goods snake through to Mombasa port - you've incurred 3,000 dollars at minumum.  Someone who manufactures in miritinis pays 100 dollars...10,000 for his goods to get to Mombasa port. He can also get raw material from anywhere in world cheaply - paying another 100 dollars.Same with machinery, etc.


(1) Please be specific.EXPORT WHAT?

Out of 195 in this world,I think over 100 countries or basically half the countries in the world have coastlines so Kenya doesn't have a monopoly of a coastline.Let us focus on economic sectors.In sectors like Agriculture Eg Sugar you have Brazil producing it,Wheat you have Ukraine Cereals you have I think USA Rice or Maize you have Pakistan and Asian countries so if it's agriculture Kenya has to focus on local not export....Look at a sector like textile and semi conductor industry you have big players in Asia.So the focus on export market doesn't make sense,that's why successive Kenyan governments sign trade deals with other nations.Give and take.America sells you Boeing,It gives you a small share of its textile under Agoa...If it's steel,China has dominated that industry.So Kenya needs to focus more on local market and not export markets.

(2) Farming.

Don't mix issues.There are two types of markets.The cash crop market of coffee tea pyrethrum sugar which depends on government intervention.The second market is perishable farm produce which has been neglected by Gov for a long time.Thats why we are having POST HARVEST INITIATIVES across East Africa like in the case of Twiga foods and ALP which your uncle Ruto invested 300MN.In simple sense,Twiga contracts thousands of farmers to plant bananas,Tomatoes and Potatoes,They look for customers,Store them in their warehouses.Basically there is a whole demand driven value chain being built across East Africa.

Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #10 on: December 26, 2022, 10:06:48 PM »
1) Farming worlwide is loss making. Growing food is simpliest thing anyone can do. It will never make anyone rich. If we are interested in making our stomach full; yes let us farm. Dont be deluded it will make anyone rich. It called agargian economy

2) 80% of the world live along coastline. That is like 7 billion of the 8 billion. Therefore SEA is main trading route for many things. It's the internet of the real world. You want to be on the sea - with efficient port - then you can get 80% of the world market.

3) No country has developed from the hinterland. China started from Shenzen. Dubai from Dubai free port. Name them - they make money from the sea port - then expand inward.

4) Africa countries moved inward because of invasion from foreign forces during those years planes had not been discovered. Nairobi and Joburg are some of biggest cities worldwide outside any sea port. It's anomly to have a city as big as Nairobi or Joburg outside a large water body

5) The earth is blue - because water is 80% of it - that is what god has given you for free to use - for transport and anything - free - just build a ship or canoe - and slide over water. Anything else is expensive.

6) You need almost same infrastructure in rural agriculture as you need in rural manufacturing - and returns are very very doubtful. You cannot invest in farmers and leave the roads in such a poor condition or leave them without electricity - and talk post harvest. Those fridges are damn expensive...

7) Economies of scales/location/consoldiation is why we have SEZ/EPZ - and such - and they should ideally be near a sea or huge river (which kenya doesnt have - DRC have Congo river)

8) If you dont have sea like Uganda or Rwanda - focus on import substitution - and service industries. By time your goods snake through to Mombasa port - you've incurred 3,000 dollars at minumum.  Someone who manufactures in miritinis pays 100 dollars...10,000 for his goods to get to Mombasa port. He can also get raw material from anywhere in world cheaply - paying another 100 dollars.Same with machinery, etc.


(1) Please be specific.EXPORT WHAT?

Out of 195 in this world,I think over 100 countries or basically half the countries in the world have coastlines so Kenya doesn't have a monopoly of a coastline.Let us focus on economic sectors.In sectors like Agriculture Eg Sugar you have Brazil producing it,Wheat you have Ukraine Cereals you have I think USA Rice or Maize you have Pakistan and Asian countries so if it's agriculture Kenya has to focus on local not export....Look at a sector like textile and semi conductor industry you have big players in Asia.So the focus on export market doesn't make sense,that's why successive Kenyan governments sign trade deals with other nations.Give and take.America sells you Boeing,It gives you a small share of its textile under Agoa...If it's steel,China has dominated that industry.So Kenya needs to focus more on local market and not export markets.

(2) Farming.

Don't mix issues.There are two types of markets.The cash crop market of coffee tea pyrethrum sugar which depends on government intervention.The second market is perishable farm produce which has been neglected by Gov for a long time.Thats why we are having POST HARVEST INITIATIVES across East Africa like in the case of Twiga foods and ALP which your uncle Ruto invested 300MN.In simple sense,Twiga contracts thousands of farmers to plant bananas,Tomatoes and Potatoes,They look for customers,Store them in their warehouses.Basically there is a whole demand driven value chain being built across East Africa.

(1) Farming is profitable...Look at some of the most developed countries in the world Value of China agricultural exports is over 50BN USD Brazil 120BN USD USA Over 100BN USD..What agricultural exports do they sell?Wheat soybean rice corn sugar...Kenya has thousands of acres in ASALS which cover I think 80% of Kenya.If I was president I would build dams and rails to some of these regions,harvest water and have major sugar soybean wheat corn plantations like Galana kulalu and bring in maybe $20BN in 10 years.

(2) Every nation is investing in cheap energy,low taxes cheap labour to attract outsourcing/offshoring for American and European companies.That market is saturated... Industries only work through trade deals and those opportunities are few that's why I keep on asking,what are we to export?

(3) Development cannot be deemed to only develop from coastlines or hinterland.Its symbiotic.In the case of Kenya coffee and tea is grown in hinterland in Highlands.Those coffee and tea plantations give birth to industries through processing factories which give rise to towns ..that's how Nairobi was born.The people who own those factories go ahead to set up hotels and banks in Nairobi and Mombasa and that gives rise to new economies and towns ...The small holder farmers get loans to build houses which need steel cement timber iron sheets which give birth to even more industries.Look at even dairy sector or cooking oil sector..farmers supply milk or seed oils to these companies which go ahead to set up agro processing facilities.

The sea is just like the roads or rail,just a medium of transport.

Offline RV Pundit

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #11 on: December 26, 2022, 11:26:04 PM »
Farming account for less than 2% of GDP of those countries despite all large lands and all the subsidizes.
Sea is free - all you invest in - efficient port. Raiway will cost you money and few have ever made any profit.
Yes, there is competition - and only those manufacturing near the port or near raw materials - with low electricity - can compete.
Kenya will never develop seriously until we shift major economic activities to Mombasa -Lamu-kwale
We also need to shift agriculture to irrigation again in the coast provinces...kulala and rest....because almost all rivers eventually flow to the sea...and you can tap them at best just before they enter the sea...at near sea level...temperatures are high...and land is flat...making best land to grow food.
Tana river and Athi river - if we use it to irrigate - will make coast very productive - and we can export the food cheaply
And move tourism to the hinterland.

Hinterland will develop from profit of the coast.

Our highlands are the best potential sessional paper 10 was BIG MISTAKE. Nowhere tea or coffee will take us.

Our biggest potential was the coast. We should have poured money along the coastline - 100kms - and shifted huge population to the coast. Leave the hinterland for few farmers.



(1) Farming is profitable...Look at some of the most developed countries in the world Value of China agricultural exports is over 50BN USD Brazil 120BN USD USA Over 100BN USD..What agricultural exports do they sell?Wheat soybean rice corn sugar...Kenya has thousands of acres in ASALS which cover I think 80% of Kenya.If I was president I would build dams and rails to some of these regions,harvest water and have major sugar soybean wheat corn plantations like Galana kulalu and bring in maybe $20BN in 10 years.

(2) Every nation is investing in cheap energy,low taxes cheap labour to attract outsourcing/offshoring for American and European companies.That market is saturated... Industries only work through trade deals and those opportunities are few that's why I keep on asking,what are we to export?

(3) Development cannot be deemed to only develop from coastlines or hinterland.Its symbiotic.In the case of Kenya coffee and tea is grown in hinterland in Highlands.Those coffee and tea plantations give birth to industries through processing factories which give rise to towns ..that's how Nairobi was born.The people who own those factories go ahead to set up hotels and banks in Nairobi and Mombasa and that gives rise to new economies and towns ...The small holder farmers get loans to build houses which need steel cement timber iron sheets which give birth to even more industries.Look at even dairy sector or cooking oil sector..farmers supply milk or seed oils to these companies which go ahead to set up agro processing facilities.

The sea is just like the roads or rail,just a medium of transport.

Offline sema

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #12 on: December 27, 2022, 04:20:30 AM »
Quote
If you invest in manufacturing plant

Manufacture what? Kenyans make nothing. I think they need to focus on the service industry like outsourcing (it's an English speaking country) work on ensuring consistent electricity and internet services, then have massive investments in FREE education all the way to university and let the internet become your manufacturing plant.


Kenya is basically like a carribbean island except over populated and much poorer (if africans could embrace the rule of law, it could even become a banking center like the bahamas but I've given up hope on africans ever embracing the rule of law

Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #13 on: December 27, 2022, 08:54:07 AM »
Farming account for less than 2% of GDP of those countries despite all large lands and all the subsidizes.
Sea is free - all you invest in - efficient port. Raiway will cost you money and few have ever made any profit.
Yes, there is competition - and only those manufacturing near the port or near raw materials - with low electricity - can compete.
Kenya will never develop seriously until we shift major economic activities to Mombasa -Lamu-kwale
We also need to shift agriculture to irrigation again in the coast provinces...kulala and rest....because almost all rivers eventually flow to the sea...and you can tap them at best just before they enter the sea...at near sea level...temperatures are high...and land is flat...making best land to grow food.
Tana river and Athi river - if we use it to irrigate - will make coast very productive - and we can export the food cheaply
And move tourism to the hinterland.

Hinterland will develop from profit of the coast.

Our highlands are the best potential sessional paper 10 was BIG MISTAKE. Nowhere tea or coffee will take us.

Our biggest potential was the coast. We should have poured money along the coastline - 100kms - and shifted huge population to the coast. Leave the hinterland for few farmers.



(1) Farming is profitable...Look at some of the most developed countries in the world Value of China agricultural exports is over 50BN USD Brazil 120BN USD USA Over 100BN USD..What agricultural exports do they sell?Wheat soybean rice corn sugar...Kenya has thousands of acres in ASALS which cover I think 80% of Kenya.If I was president I would build dams and rails to some of these regions,harvest water and have major sugar soybean wheat corn plantations like Galana kulalu and bring in maybe $20BN in 10 years.

(2) Every nation is investing in cheap energy,low taxes cheap labour to attract outsourcing/offshoring for American and European companies.That market is saturated... Industries only work through trade deals and those opportunities are few that's why I keep on asking,what are we to export?

(3) Development cannot be deemed to only develop from coastlines or hinterland.Its symbiotic.In the case of Kenya coffee and tea is grown in hinterland in Highlands.Those coffee and tea plantations give birth to industries through processing factories which give rise to towns ..that's how Nairobi was born.The people who own those factories go ahead to set up hotels and banks in Nairobi and Mombasa and that gives rise to new economies and towns ...The small holder farmers get loans to build houses which need steel cement timber iron sheets which give birth to even more industries.Look at even dairy sector or cooking oil sector..farmers supply milk or seed oils to these companies which go ahead to set up agro processing facilities.

The sea is just like the roads or rail,just a medium of transport.
https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/ag-and-food-sectors-and-the-economy/


GDP IS THE VALUE OF ALL THE GOODS AND SERVICES SOLD IN THE MARKET...Let me break it down for you. In a country like USA...Agriculture accounts not 2% but 1% of GDP...That's about $200BN USD or about 2X Kenyan economy...The goods produced in that agricultural industry be it cereals, fresh produce,grains,fibre are transported to factories through rails, roads and ships which give birth to the transport industry in USA which accounts about 5% of USA GDP...Now you can see transport and agriculture combined give about 6% of USA GDP in total....These agricultural produce are then transported to agro and textile processing industries which account for about 5% of USA..As you can see services sector depends on goods and services. They are interdependent. Some people produce food...others transport while others process it...so Agriculture on paper may account 1% of GDP but it has big effect on overall economy.

Lets apply the above case to Kenya.
Agriculture accounts for 20% of Kenya GDP. Kenyan farmers in mostly RURAL AREAS produce milk, macadamia, soybean, sunflower, cotton,maize,rice wheat,tea,timber and coffee..
These agriculture produce drive the kenya manufacturing sector which consists 7% of GDP...Tea factories process tea,Brookside processes milk,EPZ process cotton,Bidco processes sunflower,Dormans processes coffee,
Then these goods and farm produce must be transported....You get an FRR from General Motors which gives rise to vehicle manufacturing and get finance from KCB which gives rise to banking.
Its these Kenyan farmers, transporters and factory workers who will flock Mombasa Jomo Kenyatta beach on Christmas festivities.

POINT TO NOTE.
The percentage of agriculture is considered small but its income is better than manufacturing which attracts a lot of costs, little societal impact because of low wage, diesel,water  and electricity price etc.

So Ruto should stick to his MANIFESTO...Build dams for rice maize sugar wheat cotton plantations across the country to ensure every kenyan enjoys the benefit, Link those dams and agricultural producing regions with roads which will see kenya attain 30% GDP manufacturing by 2030 through agricultural and construction allied manufacturing.

Offline RV Pundit

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #14 on: December 27, 2022, 09:17:42 AM »
Every economic activity has multiplier;
Agriculture has the least; maybe 3;
Manufacturing has the highest at 10;
Agro-processing is small pie of manufacturing - real stuff are in steel & related.
Yes for now we should focus on agriculture as we already have land and farmers;
But more importantly we should try to jump start manufacturing in Dongo Kundus and Lamu Sez.
That will eventually employ more people.
We import 20B dollars worth of good - agriculture is mere 1-2B - the rest are cars, motor cycles, manufactured goods,  petroleum.
So we should target to improve our manufacturing - esp at coast - where we already have cheap and efficient port.
Agriculture will hit marginal returns if it hasnt for most of the crops.

Countries that have developed focused on manufacturing. Dubai free port and Sez. China and Shenzen. Name them.

Right now Bangladesh, Cambodia, Veitnam and even India are taking over from China.

We should aim to be next - by starting to build infrastructure for it - so come 2030 - we will have LAMU & Dongo Kundu SEZ ready and firing on all cylinders.

Ruto should avoid listening totally to Ndii - he should listen to many experts

https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/ag-and-food-sectors-and-the-economy/


GDP IS THE VALUE OF ALL THE GOODS AND SERVICES SOLD IN THE MARKET...Let me break it down for you. In a country like USA...Agriculture accounts not 2% but 1% of GDP...That's about $200BN USD or about 2X Kenyan economy...The goods produced in that agricultural industry be it cereals, fresh produce,grains,fibre are transported to factories through rails, roads and ships which give birth to the transport industry in USA which accounts about 5% of USA GDP...Now you can see transport and agriculture combined give about 6% of USA GDP in total....These agricultural produce are then transported to agro and textile processing industries which account for about 5% of USA..As you can see services sector depends on goods and services. They are interdependent. Some people produce food...others transport while others process it...so Agriculture on paper may account 1% of GDP but it has big effect on overall economy.

Lets apply the above case to Kenya.
Agriculture accounts for 20% of Kenya GDP. Kenyan farmers in mostly RURAL AREAS produce milk, macadamia, soybean, sunflower, cotton,maize,rice wheat,tea,timber and coffee..
These agriculture produce drive the kenya manufacturing sector which consists 7% of GDP...Tea factories process tea,Brookside processes milk,EPZ process cotton,Bidco processes sunflower,Dormans processes coffee,
Then these goods and farm produce must be transported....You get an FRR from General Motors which gives rise to vehicle manufacturing and get finance from KCB which gives rise to banking.
Its these Kenyan farmers, transporters and factory workers who will flock Mombasa Jomo Kenyatta beach on Christmas festivities.

POINT TO NOTE.
The percentage of agriculture is considered small but its income is better than manufacturing which attracts a lot of costs, little societal impact because of low wage, diesel,water  and electricity price etc.

So Ruto should stick to his MANIFESTO...Build dams for rice maize sugar wheat cotton plantations across the country to ensure every kenyan enjoys the benefit, Link those dams and agricultural producing regions with roads which will see kenya attain 30% GDP manufacturing by 2030 through agricultural and construction allied manufacturing.

Offline RV Pundit

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #15 on: December 27, 2022, 09:23:16 AM »
Ruto has Nancy Laibuta working with Ndii on economic council and she has done lot of research on Industries without smokestock

This should be kenya main focus - dairy, horticulture, ict, tourism etc.

Growing rice or beans or maize - will never make anyone rich.

https://www.brookings.edu/blog/africa-in-focus/2021/08/27/figure-of-the-week-a-case-study-comparison-of-industries-without-smokestacks-in-south-africa-and-uganda/

Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #16 on: December 27, 2022, 10:38:00 AM »

Offline RV Pundit

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #17 on: December 27, 2022, 12:55:35 PM »
If SeZ bring dollars they should not be taxed.Agricul
Ture is generally untaxed often supported by subsidies.We need to examine if we really need to grow wheat or we grow flowers...use money to import rice n wheat and maize.These cereals never made anyone rich.

Offline gout

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #18 on: December 27, 2022, 01:14:24 PM »
China before Shenzens got food, housing and energy right. Those Athi River EPZ workers spend 40% on food and another 40% on housing. For Athi River EPZ, water is the main operational challenge
Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one ~ Thomas Paine

Offline Githunguri

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Re: Ndii- Mwafrika gotta chart unorthodox transformation path
« Reply #19 on: December 27, 2022, 02:02:15 PM »
If SeZ bring dollars they should not be taxed.Agricul
Ture is generally untaxed often supported by subsidies.We need to examine if we really need to grow wheat or we grow flowers...use money to import rice n wheat and maize.These cereals never made anyone rich.


(1) https://www.sezauthority.go.ke/publication/document/2
In the past....The EPZ were export based....Today the EPZ have mutated to become SEZ with key focus on local market... Who owns these special economic zone? As you can see from that list above...one of the Special economic Zones is Northlands City which houses Brookside,Peponi schools, I think Nairobi gate industrial park...So these people are not paying taxes...Another culprit is Tatu city, It houses Bidco (i think Moi) Twiga foods(Ruto friend) Copia Domans..Stecol corporation which also dont pay tax...I think even Devki is becoming SEZ ...IN SHORT politically connected businesses are shifting base to become SEZ using stolen government money to avoid paying tax....If the trend continues,KRA revenues will continue to be stagnant....SEZ EPZ whatever you call it is TAX EVASION.

(2) Cut flower business is doing well,I think annual exports are between 90-100BN which is a good FX earner...Why should we waste 200BN annually importing grains and cereals which can give GOK over 30BN annually? Ethiopia has done it...The key point is a reduced import on the shilling,lower revenues and lower food prices...social capitalism.After Food security,then go build 50BN SEZ in Mombasa.