Saturday, 15 November 2014

Samsung’s Rapid Africa Revenue Growth Set To Slow Down


Samsung Africa
VENTURES AFRICA – South Korean Tech giant, Samsung Electronics, says it expects its recent revenue growth in Africa to slow sharply this year as the continent begins to succumb to the delayed effects of global economic weakness. Aggressive sales push of its products like phones, fridges, televisions and air conditioners etc., has seen Samsung’s annual revenue growth in Africa rise of up to 60 percent in recent years.
But Samsung’s head of Samsung’s African business, George Ferreira says profit growth is set to drop as the effect of global economic slowdown finally catches up with the continent. “Africa definitely has felt the pinch of the world; still with growth but definitely a slowdown in that growth,” Ferreira told Reuters in Johannesburg, adding that Samsung expects African revenue of around 10 percent.
Mobile phones remain Samsung’s biggest money maker in
Africa, where it has a 35 percent share of a market, and expects to achieve 100 million handset sales this year.
Samsung’s African workforce has also more than tripled to about 1,100 people in the past four years, according to Ferreirra. He also said expansion will focus on the continent’s growing consumer base as more Africans migrate to urban centres for jobs.
Samsung is in talks to build an assembly line in Angola, Ferreirra disclosed, aiming to tap one of the continent’s burgeoning economies and add to existing assembly plants in Nigeria, Sudan, Ethiopia and Senegal and a manufacturing operation in South Africa.
“It’s a country that’s transforming and it will be a good opportunity to do something on the lower west coast of Africa,” Ferreira said, pointing out that the plant would also serve neighbouring nations such as Namibia, Congo, and Zambia.

Share via emailShare2

No comments:

Post a Comment