E-Business
Africa Poised to Emerge World Low-Cost Manufacturing Hub-IDC
The latest analysis from the International Data Corporation (IDC) Manufacturing Insights points to the way that the amount of investment flowing into African countries and the number of global brands investing in Africa has risen sharply in recent years.
For many low-cost manufacturers, the future lies in undeveloped regions such as Africa, the Insight reveals.
These manufacturers will encounter various issues and risks along the way, but many proven, profitable examples exist of successful manufacturing investments in African countries.
The inherent proposition of the low-cost manufacturing model is forcing many global manufacturers to re-align their strategies and constantly seek new, low-cost manufacturing opportunities in emerging economies.
Some traditional hubs for low-cost labor (e.g., China, Taiwan, India, and Malaysia) have seen a gradual increase in their labor costs as they successfully move up the value chain in their quest to meet higher quality standards.
“Some major manufacturing brands like H&M, Coca-Cola, GE, Pepsi, Nestle, and Renault have managed to leverage opportunities’ in Africa,” said Martin Kuban, IDC Manufacturing Insights’ lead research analyst for Central and Eastern Europe, the Middle East, and Africa (CEMA). “Africa has also seen a massive increase in foreign direct investment (FDI) from China in recent years, which means even Chinese manufacturing companies are keen on tapping into low-cost options.”
There are several factors driving this growing manufacturing trend in Africa, including the cheap labor force and the abundance of raw materials and low cost agricultural products.
However, there are numerous challenges that must also be addressed. Corruption, excessive bureaucracy and undeveloped financial systems are among the biggest issues.
“It is extremely difficult, and in some cases impossible, to succeed in certain areas without a local partner or the favor of the authorities,” continued Kuban. “Limited education levels and poor infrastructure compound the matter for many manufacturers. And in some regions, political instability and unrest must be considered above all other factors and inevitably impacts the attractiveness of the proposition for foreign businesses.”
Despite these perceived negatives, it is impossible to ignore the role that IT can play as an enabler of faster development for manufacturers operating in Africa.
IT deployment is much simpler in emerging African factories as vendors are often able to design IT environments from scratch due to the lack of existing infrastructure.
And with major declines in the prices of handheld devices, mobility can now be adopted without much difficulty by companies and individuals.
Such capabilities can be leveraged easily by manufacturers, both on the factory floor and for enhancing workforce management.
This will give an immediate boost to process efficiency and operational quality, potentially paving the way for Africa to take its place as the undisputed low-cost manufacturing hub of the world.
IDC Manufacturing Insights is focusing on the latest developments in the Middle East and Africa region in its upcoming CEMA research.
And the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets, IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy.
More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide.
For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives.
IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
E-Business
Hisense Electronics Unveils Flagship Showroom in Abuja
By Fabian Tarpael, Abuja
Hisense electronics unveiled a flagship showroom in Abuja over the weekend. Speaking at the event, Mr. Mustapha Khries, the Abuja Branch Manager of the Fouani Group, highlighted the significance of the flagship store, describing it as the first of its kind in the entire West African region.
He also addressed the challenges facing businesses in Nigeria, particularly the high exchange rates and transportation costs.
“The Fouani Group remains resilient and ready to overcome challenges, unlike others who often exit the market when faced with similar issues.”
Ms. Haifa Du, Senior Sales Manager for Hisense Electronics, emphasized the brand’s commitment to affordability and innovation, stating that Hisense offers the most cost-effective and advanced solutions in the market.
The event underscored Hisense’s dedication to technological innovation and sustainability while reaffirming its leadership position in the consumer electronics market.
Mr. Robbin Wei, Senior Sales Manager of Hisense Group, supported by Mr. Greg and Ms. Haifa Du, showcased various innovative products from the new flagship store.
Among the standout products showcased include; The Hisense 110″ Smart Ultra AMOLED TV, featuring unique capabilities such as a solar-powered remote control and a “locate remote” function to find misplaced remotes easily.
E-Business
PalmPay, Jumia Partner to Launch Integration for Shoppers in Nigeria
PalmPay, Africa-focused fintech operating Nigeria’s most used mobile wallet, and Jumia, Africa’s e-commerce giant, today announce a strategic partnership to enhance the digital payment ecosystem on the continent, starting with payment integrations and co-marketing efforts in Nigeria.
This partnership underscores both parties’ commitment to developing the digital payment ecosystem in Nigeria and grow the use of the cashless economy.
WIth PalmPay now available as a payment method, shoppers on Jumia will now be able to pay for their purchases with the option to check out with their PalmPay wallet, ensuring a seamless user experience and transaction reliability through the direct integration.
“We are proud to partner with Jumia as we bring together the best of fintech and e-commerce to redefine the online shopping experience,” said Sofia Zab, Chief Marketing Officer, PalmPay. “This strategic alliance aligns perfectly with our shared commitment to delivering a superior user experience and exceptional value to our customers.”
Speaking on the partnership, Sunil Natraj, CEO, Jumia Nigeria added: “At Jumia, we are dedicated to creating value for our customers by ensuring a convenient, reliable, and secure shopping experience.
“This partnership with PalmPay strengthens our commitment to enhancing the digital payments within our platform. By integrating PalmPay, we are providing more options for customers to access affordable and quality goods with the convenience of cashless transactions.”
This alliance marks the beginning of a long-term collaboration between two industry giants, aiming to drive innovation, increase convenience for consumers, and foster the adoption of digital payments across Africa.
To celebrate the launch of the partnership, PalmPay and Jumia are launching a special Christmas campaign, running from December 11th to 30th. During this period, customers who make purchases on Jumia using the PalmPay payment method will stand a chance to win exciting cash rewards. More details can be found on the brands’ respective social media pages. @palmpay_ng and @JumiaNigeria.
E-Business
Aero Contractors Launches “12 Days of Christmas” Campaign
Aero Contractors is thrilled to announce the launch of its “12 Days of Christmas” campaign, a festive and engaging social media initiative designed to spread holiday cheer and reward loyal customers.
Running from December 13 to December 24, 2024, this exciting campaign underscores Aero Contractors’ commitment to connecting families, friends, and communities during the holidays.
The “12 Days of Christmas” campaign invites travel enthusiasts, loyal customers, and holiday travelers to participate in fun and interactive activities on Aero Contractors’ social media platforms, including Instagram, Facebook, and X (formerly Twitter). Each day will feature engaging posts such as trivia, puzzles, and challenges designed to ignite the festive spirit and encourage community participation.
Participants are encouraged to follow Aero Contractors’ social media pages, engage with the daily posts by liking, commenting, or sharing, and follow the specific instructions for each day’s activity.
Winners will be selected daily and announced on the respective platforms. Exciting prizes await participants, with the grand reward of a free return economy class ticket—a perfect gift for reconnecting with loved ones or exploring new destinations this holiday season.
“At Aero Contractors, we believe in the power of togetherness, especially during the holidays,” said Capt. Ado Sanusi, Managing Director of Aero Contractors.
“Our ‘12 Days of Christmas’ campaign is our way of giving back to the community that has supported us throughout the year. It’s an opportunity to engage, celebrate, and reward our customers while spreading joy and festive cheer.”
This campaign targets travel enthusiasts, loyal Aero Contractors customers, and families looking to make the most of the holiday season. Through this initiative, Aero Contractors reaffirms its dedication to safe, reliable, and efficient air travel, bringing people closer when it matters most.
Follow Aero Contractors on Instagram, Facebook, and X to join the “12 Days of Christmas” campaign. Engage daily for a chance to win a free return economy class ticket and other exciting offers.
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