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Replication of Successful
Model in the Counties
EPZAs Export Business
Accelerator (EBA) Programme




Export Processing Zones Authority




Peter Wainaina
Incubator Manager
24
th
January 2013




Masai Technical Training
Institute, Kajiado
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Overview of Presentation
Background of the EBA Programme
Current Status of EBA Programme
Replication of Successful Model
Comments & Questions
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Export Business Accelerator (EBA)
Programme: Background
1995 - 2000 : Need for an EPZ SME Development programme identified
2003 - 2004: Feasibility Study for EPZ Business Incubator / EBA
2006 - 2008 : Infrastructure Development (Phase I)
July 2009 : Pioneer SMEs Enter the EPZ Incubator
2010 2011: Infrastructure Development (Phase II)
2012 - 2013: Planning/Financing for Phase III being sought from GoK
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Definition: Business Incubation
Business incubation is a unique and
highly flexible combination of business
development processes, infrastructure
and people (management staff) designed
to nurture new and small businesses by
helping them survive and grow through
difficult and vulnerable early stages of
Development.

Source: UKBI


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Definition: Export Business Accelerator(EBA)

The Export Business
Accelerator (EBA) is unique in
that it aims to accelerate growth of
small exporting enterprises, not
start-ups, through provision of
appropriate infrastructure and
business support services.



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Constraints Facing SMEs Desiring
to Set-Up under the EPZ
Confirmed by the feasibility study:
a) Lack of export market information
b) Lack of suitable business premises
c) Lack of credit facilitation
d) Lack of SME Facilitation
e) Lack of Business Developments Services






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Export Business Accelerator (EBA)
Programme: Main Features
Main features of the EBA Programme:
Operating framework
Appropriate infrastructure
Selection criteria and graduation policy
Business support services






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Export Business Accelerator (EBA)
Selection Criteria: Target Sectors
a) Horticultural/food
processing


b) Commercial Crafts:
handicrafts, gift items,
etc


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Export Business Accelerator (EBA) :
Selection Criteria: Target Sectors
C) Information
Communication
Technology









d) Textiles and Apparels




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Export Business Accelerator (EBA)
Programme: Selection Criteria
1) Target subsidiaries of existing business with high growth
potential in export market from the target sectors.

2) Production space requirements consistent with what is
available (200 sqm to 600sqm).

3) Plan to graduate from the EBA programme to the normal EPZ
status after a maximum of 5 years.

4) Acceptance of rules and business support services provided
under the EBA programme


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Export Business Accelerator (EBA)
Programme: Selection criteria

5) Have some resources of their own (e.g.
equipment, supply contracts, etc).

6) Total employment is less 100 workers

7) Local shareholding is more than 75%

8) Capital investment is under Ksh40 million



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Export Business Accelerator (EBA)
Programme: Benefits to SMEs

EPZ tax incentives
Investor support and facilitation
Purpose built infrastructure
Competitive lease terms for go-downs
Access to capacity building programmes
Business networking opportunities




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Export Business Accelerator(EBA):
Current Status: approved projects
Projects approved by EPZA by Sector:
a) Horticultural / food processing - 7
b) Commercial crafts - 4
c) Textiles / Apparel - 2
d) Alcoholic Beverages - 1
e) Chemicals and Allied Products - 1

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Export Business Accelerator EBA)
Programme: Existing Infrastructure (Phase I)
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Export Business Accelerator EBA)
Programme: Existing Infrastructure (Phase I)








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Export Business Accelerator (EBA)
Programme: Existing Infrastructure (Phase I)








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Export Business Accelerator (EBA):
Existing Infrastructure Phase II









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Export Business Accelerator (EBA):
Existing Infrastructure Phase II








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Export Business Accelerator (EBA):
Replication of Successful Model to Counties
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Export Business Accelerator (EBA):
Replication of Successful Model to Counties
a) EPZA to Roll-Out the EBA SME Parks to 47 Counties
b) One EBA SME Park to host about: 30 SMEs
c) Space occupied by one SME Exporter: 350 sqm
d) Space required for one EBA SME park: 10,500 sqm
e) Estimated Development cots per sqm: Ksh42,000
f) Land requirements for one EBA SME Park: 5 Hectares


Bench marking data:
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Replication of Successful EBA
Model to the Counties
Cycle No1 Cycle No2 Cycle No3
Year EBA SME
Parks
Year EBA SME
Parks
Year EBA SME
Parks
2013 2 2018 3 2023 3
2014 3 2019 3 2024 3
2015 3 2020 3 2025 3
2016 3 2021 3 2026 3
2017 4 2022 4 2027 4
Total 15 16 16
EBA SME Parks to be developed in Successive
Five (5) Years Medium - Term Plans


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Replication Successful EBA Model to
the Counties (Cost of Infrastructure)
Estimated cost of Developing EBA SME parks in the 1
st
Five years


Year of Establishing
the EBA SME Parks
Number of EBA SME
Parks
Estimated Cost of
Development (Kshs)
1 441,000,000.00
Year 1 (2013) 2 882,000,000.00
Year 2 (2014) 3 1,323,000,000.00
Year 3 (2015) 3 1,323,000,000.00
Year 4 (2016) 3 1,323,000,000.00
Year 5 (2017) 4 1,764,000,000.00
Total 15 6,615,000,000.00
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Replication of Successful EBA
Model to the Counties
Planning
Cycle
Years
SME
Parks
Number of
SME Firms
Direct Jobs
Created
No1 2013 2017 15 450 6,750
No2 2018 2022 16 480 7,200
No3 2023 2027 16 480 7,200
Total 47 1,410 21,150
EBA SME Parks Job Creation Potential

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End of Presentation


THANK YOU !