<<Qtn6: What incentives / subsidies should the government provide to BPO operators? What of the clause requiring 20% Local shareholding in foreign companies - is it prohibitive or helpful?>> There is need for incentives to match the positive externalities the firms bring to the country and in the communities they are located. For example, incentives may be designed to attract certain technologies, job skills, or development of specific capabilities. For these areas, in addition to tax incentives, one may consider provision of resources such as land, buildings, water, energy, even bandwidth at a concession to attract businesses in economically distressed areas -- i.e. away from Nairobi. But there needs to be a clear stipulation of when a firm is deemed to graduate to the next level and start paying full fees. That should also signal for removal of non-compete clauses, i.e. allow competition in the sub-sector if any were imposed as an incentive. Bakuli