South Korea’s Samsung Electronics says it plans to double the annual revenue contribution from its African markets to 20 per cent of the firm’s global total in the next five years.
The company’s head of business for Africa, Sung Yoon, made the disclosure on Monday in Nairobi.
Yoon said the firm would achieve this by setting up shops and other retail channels in more African countries to cut product delivery times.
“We think Africa is extremely important for the future,” he told Reuters after a news conference in Nairobi.
He said the demand for Samsung products was being driven by growing African demand for bigger TV and mobile phone screens.
“Most customers were now buying 55-65 inch TVs, up from 32 inches about a decade ago, while mobile users were no longer content with three-inch mobile phone screens.
An increase in connectivity across the continent, helped by higher investment in telecommunication infrastructure, would further boost demand for devices in future, Yoon said.
Yoon said Samsung faced competition in Africa from cheaper devices undercutting even Samsung’s more basic smartphones.
“Those entry products are still slightly more expensive than our low entry competitors so it’s difficult to reduce the gap … We cannot sacrifice the quality,” he said.