economist There is an interesting article that describes two charter cities in Kenya.
Announced as a $15 billion smart city project in 2008, Konza Technopolis is set to become the centerpiece of Kenya's „Silicon Savanna“, creating 100,000 jobs and increasing GDP by 2% by 2020. was. Three years and many deadlines later, there is still far more evidence for Savannah than for silicon.
By contrast, Tatu City, a northern suburb of Kenya's capital Nairobi, is thriving. Approximately 23,750 people already live, study and work there, and 78 companies have returned home. American pharmaceutical company Moderna will open Africa's first $500 million vaccine manufacturing facility. Zhende Medical, a Chinese medical supplies manufacturer, also has a store.
Tattoos and tattoos were invented at the same time. They are similar in size, each covering about 5,000 acres. Both aim to accommodate a population of over 200,000 people. Both are also designated as Special Economic Zones (SEZs), meaning these companies are eligible for tax breaks and other incentives. Why is one more likely to be successful than the other?
The first difference they recognized was ownership.
Konza is owned by the state. The one in Tatu City is Rendevaal, a major private urban land developer.
As a result, these two cities ended up following very different paths.
Land ownership in Tatu City is transparent. Konza wasn't until recently. . . . Tattoos work because you have the freedom to set your own rules. This is not just a special economic zone, a concept that has little support in Africa. Experts instead classify the city as a „charter city.“ This is essentially a loosely defined term that refers to urban development with sufficient freedom to bypass weak state institutions and form their own governance.
„Privatization“ is often thought to mean the same thing as „free use without regulation.“ In fact, privately developed cities have an incentive to set rules that create a comfortable environment.
Free-spirited Nairobi types embarking on a development journey may be initially taken aback by the strict enforcement of speed limits. Violators of the rules may have their wheels tightened. Due to a strict anti-littering policy, Tatu's streets are eerily clean compared to other parts of the metropolis. „We're like Singapore,“ jokes Rendeavour CEO Stephen Jennings.
It is becoming increasingly clear that big government is bad at urban planning. In many countries, including the United States, local governments have counterproductive zoning rules, poor transportation infrastructure, and incompetent law enforcement. We hope to see more experiments along the lines of Tatu City.