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World Bank Loan Could Deliver Offshoring Boost to Africa

Posted on Thursday, April 5 by Registered CommenterRichard Edwards in | CommentsPost a Comment

When it comes to offshoring, the majority of African countries lag way behind the traditional locations of choice. In a continent which relies hugely on expensive satellite technology, the cost benefits of operating out of Africa have not yet been sufficient to convince companies to shift their attention to the Sub –Sahara.

Recent events, however, suggest this situation could be about to change. The World Bank yesterday announced loans totaling £83.3m (€118m) to improve the communications infrastructure in Kenya, Burundi and Madagascar.

World Bank President, Paul Wolfowitz said the new funding would “add tremendous public value for Africa". He added, low cost and high quality communications were essential if Africa is to improve its economic competitiveness.

The move has been welcomed by senior business figures, especially in Keyna, where the lions share of the loan ($114m) will be spent.

“It is absolutely imperative something be done right now to make bandwidth affordable,” Nicholas Nesbitt, the boss of Nairobi-based outsourcing firm KenCall, told the BBC.

“Otherwise, we're going to miss a huge opportunity and people are simply going to say that is not ready for these kinds of jobs, is not ready for business.”

If the money is spent wisely, and a high-speed, high quality, internet infrastructure is developed then the effect could be dramatic. With African companies, and more crucially, African students having increased access to technology that can make a real difference, the continent could soon be experiencing a much-needed offshoring boom.

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