Google Setting Up a Presence In Kenya

Reader wana forwards the news that Google is establishing a base in Sub-Saharan Africa. What advanced infrastructure exists on the African continent is mostly in South Africa, and a blogger from there speculates on what Google might have been thinking in choosing Kenya over SA.

Re:Number one search?

[also-rr]

According to the <a href="https://www.cia.gov/library/publications/the -world-factbook/geos/ke.html">CIA</a> Kenyans have an average life expectancy of 55 years which isn't great (the Sundan rates 49 years, Mexico and China both rate over 70 years) so your comment isn't as much of a troll as one might expect. It's not a well developed place.

Nonetheless the literacy rate is over 90% and the average GDP (PPP) is $1,200... so combined with the inequality between rich and poor you can expect to find some well educated people in the cities. Probably enough for Google's needs, or else they wouldn't be building there!

Investment is also one way to boost the economy of a country. Give them jobs and skills, the rest will follow. Even a market for adwords.

Kenya is at the forefront of e Africa ICT rev...

[arcite]

Kenya is currently in negotiation with UAE to build (FINALLY) the first Fibre optic line ($110 million)(which will connect Kenya to Oman and the rest of the world ushering in a new era of cheap high speed internet...as opposed to relying on expensive vsat technology. Only then will data centres, voip ect... become universal. Perhaps Google is anticipating the next stage of the ICT revolution in E.Africa that will happen when the government finally (hopefully) builds the line in a year or so (negotiations are still being held up for the time being). More info here http://allafrica.com/stories/200706251543.html [allafrica.com] [p] I'm in Dar es Salaam ATM using the so called 'free' wireless' in my hotel room and its dreadfully slow (atleast it works). The fibre optic line will be heaven!

Kenya makes a lot of sense

[Error27]

There is currently one fiber cable in Africa. It's called SAT3. It goes down the west coast to South Africa and then over to India.

It's run by Telkom in South Africa. Telkom has close ties with the government to kill all IT development and competition in the country. As a result, SAT3 is only 5% utilities and costs more than satelite broadband. South Africa is where broad band goes to die.

Kenya is opening up their markets and allowing competition. This year and next, they are going to be building 3 or 4 cables through Kenya. Right now the plan is for three down the coast and one through Sudan.

Tanzania has a fiber network. Zambia is building a fiber network. Botswana has a fiber network. Uganda and Burundi are building networks. It's an exciting time for Africa.

Every year African businesses spend $4 billion on Satelite. That money leaves the economy forever instead of paying for univesities and hospitals.

Re:You know what's wierd

[Per Abrahamsen]

Uh, geeks were also working late night in my time as a young geek (the 80's), and the older geeks told similar stories of their all-nighters from the 60's and 70's. But cola, not coffee, was the preferred medium for Caffeine.

Geeks don't work late because of any dot-com bubble, but because we like the quiet and because the work is too exciting to leave.

Re:Kenya is at the forefront of e Africa ICT rev..

[jmugambi]

that's not true... The SAT-3 Cable does not go 'all the way around Africa' It's on the west coast of Africa, thus Kenya does not connect to it There ought to at least 1 Fiber Optic cable within 1-2 years connected though. There's a race to see who'll deploy this cable: TEAMS EASSY is being deployed by Alcatel-Lucent - http://allafrica.com/stories/200706050685.html [allafrica.com] FLAG - being pushed by KDN which is a party to the other two cables :) In Kenya, the incumbent telco - Telkom Kenya (http://www.telkom.co.ke) and KDN (http://www.kdn.co.ke) are racing to put up Fiber all over the place, and connect to Uganda. Soon enough communication infrastructure won't be a bottleneck to development

You call those negatives?

[arcite]

I lived/worked in Kenya for 2 years - in recent times.

Corruption is not just rife, its a way of life. Police are the worst. However, one can avoid most corruption by learning how to work the system. Particularly it is possible to get things done by getting to know the right people.

Nairobi has a growth rate of 5% a year, perhaps more. It will be a mega city in 20 years. The fact is that you can either look at IT competence, lack of safety, or rampant corruption as a negative, or you can look at it as an emerging market that has tremendous possibilities. The risk is great, but the potential payoff is equally so.

And yes the fast food does suck, why would any sane person eat fast food in kenya? They have the freshes vegetables (many are exported to europe), some of the best coffee, and excellent locally raised beef/chicken.

Re:Kenya makes a lot of sense

[wamatt]

Let me just say the OP is completely correct. I'm a South African and work in the data center industry. Choosing Kenya was based solely on one thing: international fibre pricing. The cost of replicating their data at our pricing even the mighty Google couldn't afford.

I do feel Google's decision was a bit short-sighted though, as from Nov 2007 Telkom's (SA Telco monopoly) SAT3 exclusivity agreement will end along with its decade long tranny of all international fibre into SA. Other players (Neotel, Vodacom etc) will be able to get access to the SAT3 cable and pricing is going to plummet through the floor.

For Google they probably couldn't wait that long to make a decision. Kenya or Egypt would be the next choice in Africa in terms of growing IT industry. Egypt being to far north to be of benefit left Kenya with its more liberal policy and burgeoning industry.