Ksm garment cluster final presentation

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

Saturday, April 15, 2023 KV2030 Manufacturing Sector Delivery Secretariat

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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

https://www.facebook.com/Uganda.Clusters?fref=photo





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


• 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 ,


• 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

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


- 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


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


-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


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


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

Ksm garment cluster final presentation

Documents

Transcript of Ksm garment cluster final presentation