News / Africa

Africa Attracting Technology Firms

The 10-inch model of Samsung Electronics Company's new Galaxy Tab 3 series tablet computer. Such devices are growing in popularity in Africa.
The 10-inch model of Samsung Electronics Company's new Galaxy Tab 3 series tablet computer. Such devices are growing in popularity in Africa.

Multimedia

Audio
  • Listen to De Capua report on tech companies in Africa

Joe DeCapua
Africa is not only a growing market for hi-tech products, but may soon be a base for a lot more hi-tech companies. The continent is expected to see growing competition to meet the needs of its rising young and middle class populations.


DHL calls itself the “logistics company for the world,” providing transportation via rail, road, sea and air. And Company officials see Africa as a place where its business can boom. For that to happen, though, more international companies will need to invest in the continent and base their operations there.

DHL’s Sumesh Rahavendra sees that happening. That’s one of the findings from a recent global technological conference sponsored by his company.

“There’s quite a bit of evidence to that in terms of global companies starting to set up base in Africa. If you look at the likes of SAP or IBM or Hisense, which is the Chinese company, all of them are setting base in Africa and looking at how specifically they can cater to the Africa market while being in Africa, as against getting to the African market while being in Europe or the Middle East.”

Rahavendra is the company’s head of marketing for sub-Saharan Africa.

“Specifically talking about emerging markets, you know, while Asia Pacific is still a fairly robust and stable growing electronics segment, we believe that there is a lot of potential in Africa. Africa could really be the next frontier for technology growth,” he said.

For technology companies to base operations in Africa is simply a matter of good logistics.

“As an example,” he said, “if you were a technology giant that had a distribution hub in the Middle East – and if you wanted to ship into African countries – you’d have to ship probably from the Middle East all the way down to South Africa and then consolidate and distribute from South Africa into the various African countries. That’s just one example, but that’s just how your cost of doing business increases if you don’t already have an existing base in Africa.”

A company has to be in the market, he said, to understand what the customer wants and needs.

“I travel a fair bit around Africa and so does the rest of our team and you can see the technology boom literally across every country in Africa. As an example, people who never had access to a desktop PC are now playing around with tablets – are now playing around with smart phones. And it just goes to show the level and speed of adoption has been significant as more middle class and upper middle class consumers in Africa get access to technology.”

Rahavendra described the continent’s one billion people as virtually an untapped market for many products.

“The purchasing power and the income disparity [are] quite different to that of the Asian countries, but it still represents a huge population simply because a majority of people are young people. And with a young population that’s going to adopt technology and commodities in the future, it represents a significant potential for any international company coming to Africa,” he said.

A recent report entitled The Rise and Rise of Africa’s Middle Class says more than 60 percent of the continent’s population is under 25 years old. The report says this means there is a “guaranteed customer base for years to come.” 

And what’s good for companies, Rahavendra said, is good for DHL.

“As more and more companies are coming into Africa and setting up their distribution hubs here -- setting up plants to manufacture here – that represents a business opportunity for us to move more products across Africa. Look, DHL has been in Africa for over 35 years and we’re present in every single country across Africa, which means to a large extent really nobody knows Africa better than we do. And when companies come here they are going to look at who are the established players, who can help me with logistics,” he said.

Rahavendra said there is potential in every African country for growth, but some are more ready than others.

“One of the reasons why it’s hard to do business in African countries is just infrastructure and logistics. Because the cost of actually getting your product to its final place inflates it significantly because there are so much infrastructural challenges that isn’t getting you there. Second example is there are a fair bit of issues with political climate in some African countries. That needs to be made more conducive for business. The good news is signs all indicate towards a positive story going forward next five to ten years.”

DHL saID Africa is now the world’s second largest mobile technology market by connections after Asia, but the fastest growing mobile market in the world.

You May Like

New England Bears Brunt of US Blizzard

Boston, surrounding region grapple with as much as 3 feet of snow, coastal flooding; leaders in New York, spared most severe weather, criticized for being overly cautious More

China Lifts Lid on Sale of Fake Goods Online

A recent survey found nearly 60 percent of a random sample of items bought from Taobao were fake More

Upward Aims to Create Old-girls Network in Silicon Valley

Lisa Lambert, an executive with Intel Corp.'s venture-capital unit, responds to the gender-disparity debate by creating a new social organization More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
NASA Monitors Earth’s Vital Signs From Spacei
X
Rosanne Skirble
January 27, 2015 5:05 PM
The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.
Video

Video Weekly Protests in Korea Keep Japanese WWII Atrocities Alive

Every week in Seoul protesters gather in front of the Japanese Embassy to demand an apology and reparations from Tokyo for the thousands of South Korean women who were forced into prostitution during World War II. Although this year marks the 70th anniversary of the end of the war, these protestors have helped keep the issue of comfort women alive and made it difficult for Japan to move beyond its past wartime atrocities. VOA's Brian Padden reports from Seoul.
Video

Video Exercise: New Prescription for Parkinsons Disease

Exercise could be the new prescription for Parkinson's Disease, a progressive disorder of the nervous system that affects movement. More than six million people worldwide suffer from Parkinsons and they're traditionally treated with medication and surgery. Shelley Schlender has more.
Video

Video Brussels Shaken as New Greek Leader Challenges Europe’s Austerity Drive

Greece’s youngest-ever prime minister, 40-year-old Alexis Tsipras, was sworn in Monday after his victorious far-left Syriza party entered a coalition with far right rivals. Tsipras says he will restore dignity to Greece by ending spending cuts. So begins a new chapter for the country at the epicenter of Europe’s economic crisis - a change that has sent tremors across the continent, as Henry Ridgwell reports from London.
Video

Video Obama Urges Closer Economic Ties During Historic India Visit

U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video White House Grapples With Yemen Counterterrorism Strategy

Reports say the U.S. has carried out a drone strike on suspected militants in Yemen, the first after President Barack Obama offered reassurances the U.S. is continuing its counterterrorism operations in the country. The future of those operations has been in question following the collapse last week of Yemen’s government. VOA White House correspondent Luis Ramirez reports.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Oil Price Drop Troubles Texas Producers

As oil prices have fallen over the past several months, drilling operations have slowed in some parts of the United States - including Texas, the state that surpasses all others in energy production. The Lone Star State’s energy output has been boosted in recent years by development of resources trapped deep below ground in the Eagle Ford shale deposit, which stretches across south central Texas. As VOA’s Greg Flakus reports from Karnes City, Texas, the drop in oil prices has created concerns,
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid