1. Creating and improving a cluster team
2. Tasks and roles for a cluster facilitator
3. Kisumu garment making cluster Action
plan
Presentation by Victor Mageto MOIED,
CLUSTERING RECAP
Location of KENYA in
Africa
We have mapped out the Key priorities
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1 Creating appropriate incentives to attract Foreign Direct Investments through: Special Economic Zones, Free Trade Zones, Industrial parks & clusters and Industrial mapping
2 Instituting enabling policies and changes to increase global competitiveness by addressing country competitiveness challenges and the ease of doing business
3 Focusing on building attractive sectors where we have natural competitive advantage: : Leather, Textiles and Clothing, Agro-processing, Furniture
The Roadmap to Kenya’s Industrialization
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Definition: What is a cluster
Definitions as to what exactly constitutes a cluster vary. However, the concept of ‘cluster’ generally refers to a geographical concentration of vertically or horizontally linked firms engaged in related lines of business together with supporting organizations such as banks, suppliers, Business member organizations.
What is a cluster Initiative?
A cluster is a geographical
concentration of interconnected
businesses, suppliers, and
associated institutions in a particular field.
Triple Helix
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G
AC
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Kisumu Garment Making Cluster Team
Government Cluster Members: National and County Ministries of Industrialization, Ministry of Trade and
Ministry of Agriculture, County government
Private Sector Cluster Initiative Members: All Garment making business, Ginneries, cotton mills, machinery
vendors, cargo handlers, supermarkets, BMOs, KNCCI, KAM
Academia: Kisumu Polytechnic, RIAT, Youth polytechnics, KIRDI, KEBS, EPZ
Kisumu Garment Making Cluster Initiative Team
Clustering Approach
Clustering1. Can be private or government sector led initiative2. Utilizes available resources and re-innovates processes3. Cluster strategy is collectively formed during cluster-wide
workshop4. Creates fluid structures for implementation rather than
committees in perpetuity, use project teams that self-destruct on task completion.
5. Requires policy formulation (Both at County and National Levels)6. Easy to Communicate7. Participatory Approach and Instant implementation8. Clustering is a Vision 2030 flag ship project in the MOIED
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Clusters and the new economics of competition. Harvard Business Review; Boston; Nov/Dec 1998; Michael E. Porter; http://polaris.umuc.edu/~fbetz/references/Porter.html
Industrial clusters in Kenya
The concept of clusters has in recent years gained enormous popularity to the extent thatpolicy-makers, practitioners and academics alike are increasingly referring to it.Clusters are becoming an increasingly popular concept which is reflected in a growing number of policies and initiatives in government
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Clusters in the Vision 2030
Excerpts From: Kenya Vision 2030 Book pg. 74 Development of industrial and manufacturing zones:
Different regions of the country are suitable for different types of industrial and manufacturing activities. In order to harness the resources available in different parts of the country, region-specific industrial and manufacturing clusters will be promoted.
Necessary infrastructure and services will be provided to stimulate the development of these clusters (Figure 3.5.5).
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20 SELECTED PRIORITY CLUSTERS
• 1. Cotton - Makueni • 2. Cotton - Mombasa • 3. Dairy – Nakuru • 4. Dairy – Uasin-Gishu • 5. Energy – Olkaria • 6. Horticulture – Mombasa • 7. Horticulture – Naivasha • 8. ICT – Nairobi • 9. Livestock – Garissa • 10. Livestock – Kajiado• 11. Maize – Kitale • 12. Marine & fisheries – Kisumu • 13. Marine & fisheries – Malindi • 14. Transport & logistics - Mombasa• 15. Sugar – Nyando • 16. Sugar – Western• 17. Tea – Kericho • 18. Tea – Mombasa • 19. Tourism – Mombasa• 20. Tourism – Nairobi
SIX PARTICIPATORY ACTION PLANS DEVELOPED1. ICT Cluster: Participatory Action
Plan2. Kisumu Inland Fisheries Cluster
Participatory Action Plan3. Garissa Beef Cluster: Draft
Participatory Action Plan4. Cut-Flower Cluster Draft
Participatory Action Plan5. Coastal Beach Tourism Cluster
Draft Participatory Action Plan6. Transport and Logistics Cluster
Draft Participatory Action Plan
Innovative Systems & Clusters Program (Iscp-U/Pacf)- Uganda
The Tanzania Private Sector Foundation (TPSF) Cluster Competiveness Programme (CCP) is a three year program organized through the multi-donor trust fund managed by the World Bank with funding from DFID and DANIDA. The aim is to improve the competiveness of Tanzanian economy in food processing, horticulture, and tourism
Key elements of clusters• Geographic concentration - firms locate in
geographic proximity due to hard factors, such as external economies of scale, as well as soft factors such as social capital and learning processes;
• Core and defining specialization of clusters - clusters are centred around a core activity to which all actors are related
• The actors - clusters and cluster initiatives do not only consist of firms, but also involve public authorities, academia, members of the financial sector, and institutions for collaboration;
Key elements of clusters• Competition, collaboration and co-operation: this
combination characterizes the relations between these interlinked actors.
• Critical mass - This is required to achieve inner dynamics.
• Cluster life cycle - clusters and cluster initiatives are not temporary short-term phenomena, but are ongoing with long-term perspectives,
• Innovation: firms in clusters are involved in processes of technological, commercial and/or organizational change
Plan of Action
• From the above discussion, the Kisumu Garment making Cluster is expected to be one of the most dynamic and high growth clusters in Kenya thus to enhance productivity and competitiveness of the cluster, several interventions are required.
• The interventions constitute the broad objectives outlined above and specific objectives outlined below. The implementation schedule outlines the objectives and activities in a matrix form
• However, what is the role of the cluster facilitator
Role OF A CLUSTER FACILITATOR
Cluster facilitator characteristics • The facilitator supports and promotes innovative clusters and
has a catalytic role in the launch, development, administration, networking and promotion.
• In particular, the cluster facilitator: • Has very good knowledge of the cluster and
national/international environment, has a wide network of contacts , previous cooperation with enterprises , knowledge of industrial section, experience with project management
• Is neutral (has no interest in any undertaking or consortium) and acts with integrity and reliability
• Is responsible for the promotion of cluster development activities, while ensuring
The Morogoro Engineering Cluster Initiative (MECI) is located in Morogoro Region. It is a large CI with a number of large scale and small scale firms. MECI started with 9 Engineering Workshops, 20 tinsmiths groups, and 189 employees in 2005 and now it has 60 registered companies, 38 woodworking enterprises, and 450 employees. In addition to achievements made by its firms, MECI received a certificate of recognition for successfully training and supporting a CI member who had contracts to supply fuel efficient stoves (see section 2.1.2.3) to GTZ (Fig.1). Its main firms are:
• Large companies• Small companies• Road side companies• Sellers• User of machines• Suppliers of “raw materials”
Fig. 1 The certificate of recognition offered by GTZ proudly held by the CI Facilitator,Eng. Chisawillo
Role OF A CLUSTER FACILITATOR
• Provides no scientific expertise, but acts as a "facilitator" for entrepreneurship in this sector, suggesting opportunities and procedures and providing all the necessary information and guidance to potential users,
• Facilitates technical, legal support and educates companies in the industry, on innovative activities topics such as patenting, exploitation, research results, development of prototypes, etc.
• Coordinates necessary actions to develop partnerships and exchange of knowledge, promotes networking between research institutions and businesses and supports , if necessary, the development of common infrastructure ,
Role OF A CLUSTER FACILITATOR
• Promotes the international exposure and networking of the cluster (participation in joint reports, connection with relevant international clusters, internet site, electronic and print publications, etc.)
• Supports companies to access national funding or EU programs and to raise capital.
• Motivates partners to develop policy of cooperation in order to highlight the benefit of cooperation, contributes to competitiveness of the participants (e.g., common suppliers with lower purchase cost, higher market share as a company - member of the cluster, etc.).
• Is staffed by personnel with knowledge and experience in administration
Trained Cluster Facilitators in Kisumu
Trained Cluster Facilitators in Kisumu
The future of the Cluster; The Cluster Manager
JOB DESCRIPTION & PERSON SPECIFICATION• Job Title: Cluster Manager Responsible to The Cluster Team/Sponsor
– Primary Objectives• Support the cluster by building the brand (s) and its image through;• staff and customers surveys viz–a-viz key messages and values• Strengthening market position and lead the garment business through its next
stage of growth• Support Ward Cluster Networks to achieve and exceed agreed sales targets and
maintain and improve high levels of customer experience • Develop relationships with all retail stores and integration with online/direct
sales• - Supporting the Garment Cluster Sponsor through overseeing the Cluster
team, processes, structure, environment, resources, demonstrating best practice• - Communicate effectively with cluster team, supermarkets, wholesalers and
retailers
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The future of the Cluster; The Cluster Manager
• To professionally manage and support all branch managers in the cluster ensuring that the brand message is being delivered at the highest level
• Improving store performance by building on current practices, and implementing new procedures to ensure future success.
• To monitor, support and report back on overall environment within cluster stores; visual merchandising, presentation, cleanliness of stores
• To deliver results in line with Cluster Objectives and Key Performance Indicators (KPI’s)
The Cluster Manager
Main Tasks and Key Areas of Work• Operate as an Area Manager Deliver a profitable Cluster through proactive and
reactive approaches to seasonal and weather related peaks and troughs, and an omni-channel approach to sales and customers.
• Responsible for supporting the Garment Cluster with budgets – Demonstrate views on current key trade activity that potentially impacts the
Cluster• Support the cluster team in leading and managing teams and agreed departmental
strategies• Be pro-active in expanding and promoting the cluster brand and assisting at peak
training times and store events • Liaising with other Cluster Managers to ensure that the retail operations run
smoothly, and to targets.• To support the opening of new stores – people, resources, operational plans • Working with Garment cluster team in identifying key areas of strength, and areas
for growth in Cluster, maximising sales spaces and branch profitability.
The Cluster Manager
Other Specific Requirements of the Post• Keep confidential all knowledge of company business,
finance and statistics.• To represent the Kisumu garment industry and promote its
brand image through all activities• Ability to work additional hours to suit the needs of the
business.Person specification for this post• Leadership• Experience of managing people/multi-sites at a senior retail level.• Excellent Organisation, planning and communication skills• Experience of working with, and developing staff in order to maximise their input into the
business
Training is a strong pillar of Clustering
THANK YOU
Overall cluster development
The Kisumu Garment Cluster Action Plan
Improve the business environment for Garment sector
Increase Export Potential
Develop and foster sharing of infrastructure and other systems
Foster and strengthen strategic collaboration amongst Garment Industry players in KSM and beyond
The Kisumu Garment Cluster Action Plan
Fast track garment making technological capacities through skill acquisitions, upgrading, technology transfer and innovation
Strengthen the provision of financial for the development of the garment cluster
Activity Responsibility
Performance Indicators
Set-up a business driven cluster organization to represent the Kisumu Garment Making cluster and link its members
Private sector supported by government
- Name for cluster, registration and organization set up by end of 2015
Organize five meetings for all relevant actors in the Kenyan economy with international benchmark inputs
Cluster organization
- Organize 2 meetings in 2015 and 3 meetings in 2016 for Garment producers to exchange information
Come up with a branding strategy for the Kisumu Garment Cluster Initiative
Cluster organization
- Strategy document on development and branding by end of 2016
Develop information and exchange of knowledge via digital tools
Cluster organization/COMESA
- Build a website and other online tools for the Kisumu Garment Cluster Initiative
Overall cluster development
Activity Responsibility Performance Indicators
Development of sub-sector specific policies, tailored to the needs of specific sub-sectors like Textile Apparel, and Cotton
Cluster Players - implementation of Sub-cluster specific policies
Introduce polices to facilitate the expansion of the Kisumu Garment Sector
Relevant stakeholders spearheaded by MoIT, KNP, Cluster Team
-Reduced cost of infrastructure
Develop Baseline indicators (for benchmark against international best practices)
Consultancy, KNBS, CIT
-Baseline indicators established -benchmarks established
Hasten the Incubation project for Cluster Members (Garment makers)
COMESA, Kisumu Poly, RIAT, Cluster Team
-Number of ICT export companies incubated
Organise a conference to inventarise demands from other actors in the Kisumu Garment Making Cluster
Cluster Team - Conference to discuss plans and needs
Improve the business environment for Garment Making Sector in Kisumu
Activity Responsibility Performance IndicatorsBrand Kisumu as a Garment making hub and attract leading multinationals as well as domestic firms
MoIT, MoTT, Cluster Team & other stakeholders
-Increased investors in Garment making within the cluster-build publicity
Attract and set up assembly plants to exploit the AGOA and COMESA markets
MoIT, MoTT, Cluster Team & other stakeholders, COMESA
- numbers of garments components locally produced and exported
Allocate greater resources and develop local capacity to export
COMESA/Development partners, banks, government, EPZA, Cluster organization
-Number of garments that are export related products
Introduce a comprehensive business incubation strategy which will provide support in finance and other business development services
MoIT, MoTT, Cluster Team & other stakeholders, COMESA, Universities
-strategy and guidelines developed-number of garment makers incubated
Encourage joint-ventures with foreign companies (e.g. policies, incentives)
Stakeholders spearheaded by Cluster organization, supported by MoIT, MoTT,
-Number of joint ventures and subcontracting contracts
Encourage inter-regional trade EPC, EPZA, EAC, COMESA, MoIT, MoTT, Cluster Team & other stakeholders,
-Increase of number of companies exporting garment products within the region
Encourage the investment of export oriented companies at EPZ (Take advantage of incentives)
MoIT, MoTT, Cluster Team & other stakeholders,
-Increase in garment making companies investing in the EPZ
Increase Export Potential
Activity Responsibility Performance Indicators
Establish an umbrella body of major stakeholders to coordinate implementation of a cluster action plan
Cluster organization, GOK, MoIT
-The establishment of the umbrella body
organise biannual roundtable meetings of key players in the industry
Cluster organization
-Roundtable meetings
Encourage the development & strengthen existing formal (registered associations) & informal networks (e.g. online)
Cluster organization, relevant associations
-Improved and enhanced networking
Strengthen knowledge management
MoIT, e-gov’t, stakeholders, Cluster Team
-Development of knowledge sharing mechanism
Develop and foster sharing of infrastructure and other systems
Activity Responsibility Performance Indicators
Set up a fund, subsidies or fiscal incentives for shared infrastructure
COMESA, MoF, MoIT, Cluster Team
-funds established
Improve public infrastructure and other common services within the cluster
MoIT, Cluster Team
-common services- increased investment in public infrastructure
Facilitate “ladder of investments approach”
MoIT, Cluster Team
-relevant regulations established
Fast track the adoption of common industry protocols and interoperability
MoIT, Cluster Team
- introduction of relevant regulations
Foster and strengthen strategic collaboration amongst Garment Industry players in KSM and beyond
Activity Responsibility
Performance Indicators
Organize and finance training for select individuals in high technology abroad
MoIT & MoF KSM, COMESA
-No. of Scholarships
Provide incentives for Kenyans in Diaspora to relocate for such skills, or foreign experts
MoL & MoIC -No. of returnee Kenyans with specialized professional ICT training and skills
Support local Institutions/universities with special facilities for garment skills development (RIAT, Maseno)
Cluster Team, MoIT, MoHEST
-Garment skills development
Develop joint curriculums with leading Textile and Apparel training institutions
MoHEST , local & leading universities
-Appropriate Curriculum
Fast track garment making technological capacities through skill acquisitions, upgrading, technology transfer and innovation
Organize innovation contest within the cluster (for development of products, process, services or other innovations), where winners get incentives and business support
Provide incentives for ICT companies to participate in R&D
Cluster Team, MoIT, MoHEST
-Annual innovation competitions-Increase in number of innovations developed as a result- strengthen IPRs for local innovators- showcasing innovations both locally and internationally
Encourage basic research within local universities fundamental to long term innovation and sustainability of garment sector
Development partners, COMESA, universities, technical colleges and youth polytechnics
-Increase in local innovations & research projects- number of technical graduates in garment making- increased funding to textile training and engineering colleges and schools
Encourage interaction between local and international ICT companies for skills sharing and technology transfer
Local ICT companies; international ICT companies
-Increased interactions amongst local & international companies
Activity Responsibility Performance Indicators
Create awareness of investment opportunities in Kisumu garment making cluster
Kenya Investment Authority, EPC, Media, Banks & other relevant stakeholders
-Number of new investments in garment making-vibrant role of Ken Invest
Develop innovative investments in Kisumu garment making cluster
Kenya Investment Authority, EPC, garment making companies & other relevant stakeholders
Provide incentives for banks to introduce Private Equity (PE)
County Government, NESC, MoIT
-Increase in finance of early stage venture capital
Increase sector specific funding for R&D by universities involved in Textile and Apparel Sector
Kisumu County Government, R&D Institutions; universities & sector stakeholders
-increased funding to institutions and universities-increased R&D
Strengthen the provision of financial for the development of the garment cluster
THANK YOU