The Digital Dream...

The Silicon
Savannah...
Where Innovators Solve Africas Problems

Connected East Africa

Presented by: Mike Macharia, Chair, KITOS
CEO, Seven Seas Technologies
Follow @MikeMachariaSST

Local Content &

Procurement Policy

Procurement of
Flagship
Projects

30% of Contracts =
Women & Youth

Local Content

Flagship Projects + Local Content

Centre of Excellence
(COE) & Science
Parks

Intellectual Property
(IP)

Job Creation
Preferential
Treatment
to Build
Local Companies
1.
IT Kenya,
Buy IT Kenya, to
Build Kenya

ITeS Exports

Centres of Excellence + Academic Linkage +

Bridging Talent Gap

National Projects Policy

Centre of Excellence
(CoE)

Global & Kenyan ICT

Companies

Innovation Test
Beds
(For Prototyping)

Polytechnics

Universities

Vocational
Training
Institutes

2. Sustainable Talent
Development,
3.Co-innovation, Research &
Development
4 .National Incubation Hubs

IP Creation

Research &
Development

Co-innovation

Commercialisation + Intellectual Property

+ Capital + Exports
African KE - MNC

6. Capital
Inflows
Angel
Investors

Private
Equity
K

5 ITeS
Exports

NSE

Regional KE - MNC

Quasi Government
Venture
Capital Fund

Global KE - MNC
Banks

Kenyan Innovation to the Global

Markets

Grants

Wealth
Creatio
n

The Innovators Journey - Mind the Gap

Role of Enterprise Kenya Closing the Gap
Unlock
Capital

Ideas

Policy

Global
Competitiveness

Gap

Security

Transport

Agriculture

Health

Government
Education

Citizen
Services

Defence

Lands

Private Sector
Banking

Telecommunications

Aviation

Manufacturin
g

How do I Scale Globally?

Where do I Go?

Funding

Enterprise Kenya
(A Home for the
Innovator)
Management

Source: Source

Research &
Development

Who Buys my Innovation?

Innovator
Entrepreneur

Gap

IP
Commercialization

Gap

Flagship Projects
Procurement

Export
Markets

Wealth
Creation

Digital revolution has transformative impact and

Kenya well placed to lead in 5 of the sectors
Kenya well placed to provide solutions for Africa
problems in 5 areas with relevant skills/experience
1.
2.
3.
4.
5.

Government solutions (Security, eGovernment)

Financial services
ICT
Health
Agriculture

High
Potential for
capturing
benefits

Device
penetration

Online fulfilment

Health
Tourism

Agriculture

ICT
Transport

Financial services
GovernmentSocial
Services
,Security
,
Education

Retail

Information
asymmetry

Professional services

Need for highspeed bandwidth

Low

Mining

Construction

Manufacturing

Low

High
Number of people impacted

SOURCE: McKinsey Global Institute analysis

Innovation agencies around the world have tackled

the challenge of growing entrepreneurship
ecosystem

Yozma
Yozma

Key themes driving success

Agencies were set up to alleviate targeted bottlenecks

They are designed and structured to operate most efficiently in line with a well-defined role or
archtype
Projects a generally high-risk and will likely only be funded if they are likely not to happen without
intervention
Private sector expertise and resources are leveraged as much as possible

Agencies played a focused role in addressing key

challenges

Description

Connector

Active
investor

Service
provider

Facilitates
development of
innovation by
bringing together
stakeholders to
create linkages,
enable collaborative
programs and assist
in providing access
to markets

Continuously plays
a part in the
innovation
landscape and
development along
the value chain,
through
investments and
initiatives in
focused areas

Facilitates
development across
a gap in the value
chain providing
services such as
technological,
commercial,
financial and/or
strategic support

Yozma

Source: Agency Interviews; McKinsey Team analysis

Catalyst

Regulator

Provides targeted
input to address a
specific bottleneck
with the intention of
drawing in and
helping stimulate
participation by
other players

Drive governments
mandate, influence
regulation, and
provide feedback on
the effect of current
policies to shape
future policy

Agencies played a focused role across the value chain

Basic
research

Applied
research

Connecto
r

Active
investor

Service
provider

Catalyst

Regulato
r

Source: Agency Interviews; McKinsey Team analysis

Business
Product

Commerc
ialisation

Expansio
n

Kenya faces several gaps in the innovation value chain

which can be addressed through a targets set of
Good - key
Fair - gaps exist
Development /
initiatives
elements
in
place
Incubation
Commercial Idea
generation

Observations

Scarcity in ICT
skills base
More coaching
needed to focus
on less
academic ideas
linked to
specific
business
challenges /

1 Gov as
1.

Key
initiatives
required
to
address
bottlenec
ks

2 platform
2.
3 Corp as
3
platform

3. Applied

research
focused on 4-5
4
4
National
Imperative
areas

4.
55 Digital talent

programme
(extend/collabor
ate with private
Source: McKinsey team
analysis
sector)

Business
Development

Limited angel
community to
assist with
business
development
True business
Incubation not
yet at scale

6 Tech
1.
6

Incubation
Programme
aligned with 4-5
National
7 imperative
areas

2. Subject-

matter
experts
(management
strategy &
advice)

Product
Development

Scarcity of
developer talent
Lack of focus on
a single idea
and disciplined
execution, as
entrepreneurs
often have many
projects at once

Poor - least
developed areas

Commmercialisation

Expansion/
Industrializai
ton

Difficulty
achieving
scale
Mis-aligned
valuations
given high
expectation
from entrepreneurs

Few successful
exits
Limited IPO
market

1 Market access
1.
3 industry
6 (promotion
standards (e.g.
1
model similar to
CMMI level 5)
2.
GEMS market
4
Enterprise
9 IP protection/
integration
2.
1
Ireland)
1
patents
3.
Crowd funding 7
5
2. National
1 Coaching on
(as form of
3.
champions in
0 product design
customer
1
priority areas
validation)
(minimum viable
8
3. Favourable
product,
1 roadmap)
Procurement
1
(e.g. open
4.
1 Prototyping
tenders for
2 labs
incubators)
5. Testbeds and
Cloud
innovation
8 Help with
1.

1 Catalyse VC
1.

By 2020, Enterprise Kenya public-private partnership

aspires to accelerating Kenyas ICT economy

Goals for achievement by 2020

Enterprise Kenya will focus on 3 key initiatives to

unlock the innovative energy and entrepreneurial
zest

1
2
3

Connector role
across the
ecosystem
Scaling Technology
incubation
VC industry
catalyst

These initiatives will focus across the value chain

Proposed Enterprise Kenya focus
Basic
research
Connect
or
Active
investor

Applied
research

1 Connector role
across the
ecosystem

Service
provider

Enterprise Kenya
focus areas

Development / Incubation
Business
Product

Commerciali
-sation

Expansion

2 Scaling Technology
incubation
(active investor, service
provider)

3 VC
industry
catalyst

Catalyst
Regulato
r
Coordinati
ng across
existing
initiatives

Ministries of Communications & ICT, Commerce, Foreign Affairs and International Trade, Devolution, Education,
Industrialisation, National Treasury, Vision 2030, Uwero fund, Public Procurement, Brand Kenya, Communications
Authority, National commission of Technology and Innovation, KEPSA, KAM, TESPOK, Treasury, and many others
Source: Agency Interviews; Team analysis

Government initiatives coordinated by Enterprise

Kenya will help deliver National ICT plan
objectives by 2020
Public/private sector initiatives
coordinated by Enterprise Kenya
Idea
generation/
Digital
skills

Development/
Incubatio
n

Gov as platform

Corp as platform

Applied research focused on 45 National Imperative areas

Digital talent programme

@skills platform

Tech Incubation Programme

Subject-matter experts

Help with standards (e.g.

CMMI)
IP protection/patents

2020 National ICT plan objectives

180,000
55 global USD500m
8% of
direct
companie tech-based
GDP
jobs
s
VC

USD1bn
ITeS
exports

10 Product design coaching

11 Prototyping labs
12 Testbeds / Cloud platform

Commercialisatio
n

13 Catalyse VC industry
14 GEMS market integration
15 Crowd funding
16 Market access

Expansio
n

17 National champions priority

areas
18 Favourable Procurement

Actions next 90 Days

1. Crystalise Enterprise Kenya objectives and vision
based on additional input from key stakeholders
Where we are / advantages we have
Bottlenecks to address in value chain
Roles to play
2. Develop business case for 1billion Kshs ,how ramp it up
with a matching private sector fund for a total of 2 billion Kshs,
and how it will be used

3. Develop12-month implementation roadmap and 30day launch plan

Thanking the team

Buy IT
Build IT

Lead IT

Promote IT
Kenya. The Home of African Innovation

Source: Source