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Ksm garment cluster final presentation
1. 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,
4. We have mapped out the Key priorities
4
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
5. 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.
Friday, June 26, 2015
KV2030 Manufacturing Sector Delivery
Secretariat
5
6. What is a cluster Initiative?
A cluster is a
geographical
concentration of
interconnected
businesses,
suppliers, and
associated
institutions in a
particular field.
Triple
Helix
6/26/2015 6
G
AC
7. 6/26/2015 7
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
8. Clustering Approach
Clustering
1. Can be private or government sector led initiative
2. Utilizes available resources and re-innovates processes
3. Cluster strategy is collectively formed during cluster-wide
workshop
4. 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 Communicate
7. Participatory Approach and Instant implementation
8. Clustering is a Vision 2030 flag ship project in the MOIED
6/26/2015 8
10. 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
11.
12. Industrial clusters in Kenya
The concept of clusters has in recent years
gained enormous popularity to the extent that
policy-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
13. 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).
Friday, June 26, 2015
KV2030 Manufacturing Sector Delivery
Secretariat
13
18. 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
19. 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;
20. 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
21. 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
22. 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
23. 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
24. 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 ,
25. 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
28. 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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30. 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)
31. 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.
32. 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
35. 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
36. 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
37. 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
38. 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
39. Activity Responsibility Performance Indicators
Brand 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
40. 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
41. 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
42. Activity Responsibil
ity
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
43. 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
44. 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
