Mwafrika still far away from manufacturing - from farming to real estate

[RV Pundit]

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https://www.standardmedia.co.ke/business/article/2001269825/real-estate-favourite-investment-for-uhuru-s-cs-nominees

[Kadudu]

We have a long way to go. Manufacturing in Kenya has been left to Asians. There is hardly any area of manufacturing which is not controlled by Wahindi. Even retail apart from mbogas is in the hands of Wahindi. These people do not have shambas in the sense Mwafrika loves it, but they are the richest people around.

https://www.standardmedia.co.ke/business/article/2001269825/real-estate-favourite-investment-for-uhuru-s-cs-nominees

[RV Pundit]

I think retail and wholesale has been taken over by Mwafrika. Manufacturing is still an exclusive Indian domain. We need to change mindset. It not easy. It may take another generation or two...to have people who will not thinking opening a factory and manufacturing basic items is rocket science. Mwafrika has 100-200M to build apartment - yet about the same is enough to start a factory and manufacture staff - and make more money than rent

We have a long way to go. Manufacturing in Kenya has been left to Asians. There is hardly any area of manufacturing which is not controlled by Wahindi. Even retail apart from mbogas is in the hands of Wahindi. These people do not have shambas in the sense Mwafrika loves it, but they are the richest people around.

[Kadudu]

We like importing. Even tooth picks in Kenya are imported from China. The government should take positive steps and give priority to locally manufactured goods in giving out government tenders. I can assure you most people in Kenya would rather get govt LPOs and and go shopping outside the country. 

I think retail and wholesale has been taken over by Mwafrika. Manufacturing is still an exclusive Indian domain. We need to change mindset. It not easy. It may take another generation or two...to have people who will not thinking opening a factory and manufacturing basic items is rocket science. Mwafrika has 100-200M to build apartment - yet about the same is enough to start a factory and manufacture staff - and make more money than rent

[RV Pundit]

India are doing it without any incentive. I think only incentive that will work is to zero rate machinery.

We like importing. Even tooth picks in Kenya are imported from China. The government should take positive steps and give priority to locally manufactured goods in giving out government tenders. I can assure you most people in Kenya would rather get govt LPOs and and go shopping outside the country. 

[Kadudu]

You are wrong on India. India just like China has very high import duties on certain manufactured products. An imported car in China costs more than double a locally assembled one. India till a few years ago even barred companies like IBM to operate or even sell computers in India. Hence the rise of computer industry in India. The locals had no competition.
The reduced rate machinery is actually in place in Kenya especially when one wants to put up the machinery outside Nairobi or Mombasa. I think most people are just not aware.

India are doing it without any incentive. I think only incentive that will work is to zero rate machinery.

[RV Pundit]

sorry I meant kenindians/

[hk]

In real estate and farming in kenya especially, only money is needed to get started in those sectors. Any idiot can invest in real estate. However manufacturing there's slightly more sophistication needed. Even the few africans who are involved in manufacturing e.g kirubi they are just license manufacturers of other companies brands. In manufacturing is where there'll be clear separation between real entrepreneurs and masqueraders.
Government scrapped incentive to invest in rural areas https://www.businessdailyafrica.com/Corporate-News/Rotich-scraps-tax-holiday-for-rural-based-companies/-/539550/2757078/-/vjufppz/-/index.html . To encourage manufacturing they need to zero rate capital goods and also encourage development bank to finance equipment purchase. Uhuru big 4 agenda that entails setting up million of square feet of warehouse is puzzling(bonehead). Manufacturing space isn't the problem, its the dearth of manufacturers.

[RV Pundit]

You've nailed it. Mwafrika will continue to invest in farming, real estate and transport sector. The other sectors like manufacturing, real estate and such are outside their 'sophistication' for now. What if Gov promote the nascent manufacturing in Kariobangi light industries - most of them just need financing but they have the know-how.

In real estate and farming in kenya especially, only money is needed to get started in those sectors. Any idiot can invest in real estate. However manufacturing there's slightly more sophistication needed. Even the few africans who are involved in manufacturing e.g kirubi they are just license manufacturers of other companies brands. In manufacturing is where there'll be clear separation between real entrepreneurs and masqueraders.
Government scrapped incentive to invest in rural areas https://www.businessdailyafrica.com/Corporate-News/Rotich-scraps-tax-holiday-for-rural-based-companies/-/539550/2757078/-/vjufppz/-/index.html . To encourage manufacturing they need to zero rate capital goods and also encourage development bank to finance equipment purchase. Uhuru big 4 agenda that entails setting up million of square feet of warehouse is puzzling(bonehead). Manufacturing space isn't the problem, its the dearth of manufacturers.