Harare, Zimbabwe (News of the South) – It’s a match made in business heaven: Chinese technology companies hungry for expansion are diving into the less-developed African continent, where several countries are targeting double-digit economic growth.

 

 

Iginio Gagliardone, a lecturer in media studies at the University of Witwatersrand in South Africa, told CNBC via telephone that the Middle Kingdom’s expansion into Africa has been particularly pronounced over the past four to five years.

 

 

“China is everywhere,” Gagliardone said, though he noted that its presence was stronger in certain markets.

 

 

For example, Gagliardone explained that China was “definitely the only player” in Ethiopia, with Chinese investment in the country’s technology sector totaling $3 billion as of 2012.

 

 

But, he added that China was making its presence felt not just in East Africa, but also as far north as Egypt and Morocco and as far south as South Africa.

 

 

According to analysts CNBC spoke to, success in Africa boiled down to cost, with Chinese companies offering cheaper alternatives to their U.S. and European competitors. Gagliardone also said that African companies welcome the Chinese “no questions asked” style of doing business.

 

 

The China-Africa tech story began two decades ago, with the expansion of Chinese telecommunications giant ZTE, followed by Huawei, which provides similar services.

 

 

Tim Steinecke, an analyst at management consultancy Xynteo, wrote to CNBC via e-mail that both multinationals helped lay Africa’s telecommunications infrastructure, and also worked with local African companies, research institutions and governments.

 

 

Others pointed to the innovation Chinese companies have brought to Africa. In a report published in June, consulting firm McKinsey said that “Nearly half of Chinese firms in Africa have introduced a new product or service to the local market, and more than one-third have introduced a new technology.”

 

 

Making a smartphone geared to African markets

Tecno, a smartphone maker under Hong Kong parent company Transsion Holdings, has embodied Chinese companies’ winning formula on the continent.

Handsets from the Tecno, which has a regional base in Nigeria, have practical innovations geared toward African markets.

 

 

These included a long battery life as reliable power sources can be difficult to come by, screens resistant to dust particles and cameras specifically adapted for darker skin tones. On top of this local understanding is a market-friendly price: Handsets typically cost between $50-$100.

 

 

Tecno has grown fast, and according to Transsion Holdings’ website, its collective brands in Africa have a more than 40 percent market share in Sub-Saharan Africa. Transsion Holdings has also seen a total sales volume of more than 246 million dual-SIM handsets, or phones which can hold two SIM cards.

 

 

According to CNBC Africa, Tecno itself has a 25 percent share of Africa’s total smartphone market.

 

 

 

Attai Oguche, a Lagos-based deputy marketing manager for Tecno, told CNBC via telephone that Chinese companies are “good at spotting trends.”

 

They “adapt easily and come up with a product that everyone likes,” he said.

 

Oguche added that the “very conservative” European approach means companies risk falling short of their Chinese competitors.-CNBC



About Author

Latest News

Apple confirms it has acquired Shazam

Harare, Zimbabwe (News of the South)-Apple ..

Mozambiquan President Fires Four Ministers, No Explanation

Harare, Zimbabwe (News of the South)-Mozambican ..

Mugabe and Jammeh: The African Presidential Throw Outs of 2017

Harare, Zimbabwe (News of the South)-The ..

President Mnangagwa On The Social Media

By Leonard Koni. President on social media ..

Like Us On Facebook

SUBSCRIBE: YouTube Channel

Forget Motivational Stories: Write Your Own

By Pearson Mbendera I have read a lot of ..

Green Fuel Zimbabwe On Apprentice Training Program

BY MARTIN MULEYA. Mutare, Zimbabwe. (News ..

Whizz Kid 11 Year Old Joshua Ngoka Builds Computer

London, United Kingdom. – AN 11-YEAR-OLD ..

Shock As Prophet Magaya Admits To Comiting Adultery

Zimbabwe, Harare. – PHD Ministries ..

A Story Of Love As Kenya Mourns The Westgate Mall Massacre

By Anoziva Marindire   The Nairobi Westgate ..

Winky D Shines At First Ever Zim Dancehall Awards

By Daniel Muzana Zimbabwe`s Winky was the ..

Ivory Bound For Malaysia Intercepted At Robert Gabriel Mugabe Airport

At least 200 kilogrammes of ivory worth over ..

Mugabe flies to Singapore for annual holidays, first trip since ouster

Harare, Zimbabwe (News of the South)-Former ..

IOC bans Russia from 2018 Winter Olympics

Harare, Zimbabwe (News of the South)-The ..

Apple confirms it has acquired Shazam

Harare, Zimbabwe (News of the South)-Apple ..

Mozambiquan President Fires Four Ministers, No Explanation

Harare, Zimbabwe (News of the South)-Mozambican ..

Mugabe and Jammeh: The African Presidential Throw Outs of 2017

Harare, Zimbabwe (News of the South)-The ..

Murderer Kombian Returns To The Docks

Ghana`s notorious robber, Johnson Kombian, ..

Leaked Alangizi Video: Defending Alangizi, My Testimony

By Musamba Mumba Too much crap has been said ..

Eritrea Human Rights Abuses Highlighted At UN Review

Geneva – Eritrea was on Monday accused ..

Zimbabwe Communist Party Blasts Opposition Parties

By Munesu Chigada Harare, Zimbabwe (News ..

Silence Is Golden But Not In Business

By Pearson Mbendera I am the silent type. ..

Zim Vice President Mujuru Factions And Meaning What Was Never Said

By Wisdom Mumera Listening to Zimbabwe`s ..