https://en.sputniknews.africa/20230605/why-are-african-smartphones-non-competitive-rwandas-innovation-minister-explains-1059720677.html
Why Are African Smartphones Non-Competitive? Rwanda's Innovation Minister Explains
Why Are African Smartphones Non-Competitive? Rwanda's Innovation Minister Explains
Sputnik Africa
Investment in smartphone and phone manufacturing is eaten away by higher production costs in Africa, when compared to other nations, Paula Ingabire, Rwanda's ICT and Innovation Minister stated.
2023-06-05T21:48+0200
2023-06-05T21:48+0200
2023-06-05T21:48+0200
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Investment in smartphone and phone manufacturing is eaten away at by higher production costs in Africa when compared to other nations, Paula Ingabire, Rwanda's ICT and innovation minister stated on June 1 during a Senate discussion about the country's ICT development goals.As of 2022, 78% of Rwandans were phone owners, but just 25% of them had smartphones, according to Ingabire. She said the nation has been making efforts, such as seeking investors to produce smartphones in Rwanda, to make it easier for people to acquire such electronic gadgets that can allow them to utilize Internet services.According to her, the nation's first computer manufacturer was Positivo. Another firm, Mara Phones, followed, and both had difficulties producing cellphones.She said companies that manufacture phones have profit margins ranging from 1% to 4%, adding that certain products have more production costs than they are worth as a profit, which is why many businesses begin, but then fail quickly. Eddy Sebera, the managing director of Rwanda Mara Phones, told media that the continent's producers of phones were also concerned about the rising manufacturing cost.According to Ingabire, the survey also showed that in order to build smartphones, a person needs an assurance that there will be demand for at least five million devices annually.The official stated that Rwanda's objective is to develop a knowledge-based economy.According to Rwanda's new National Broadband Policy and Strategy, which was released in October 2022, one of the country's objectives is the implementation of 5G-related infrastructure.In this regard, during a consultative meeting in the Senate, the country's ICT minister stated that 16 5G hubs would be constructed this year in collaboration with other telecom companies as part of a pilot program to test the technology.As more spots that are appropriate for implementation are located, the number of venues is anticipated to increase the following year to 35. According to information from the Ministry of ICT and Innovation, 60 5G stations will be operational by 2025, according to the government.
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investment in, phone manufacturing, eaten away, production costs, in africa, african continent, innovation minister, new technologies, 5g technology, east africa, cost of production
investment in, phone manufacturing, eaten away, production costs, in africa, african continent, innovation minister, new technologies, 5g technology, east africa, cost of production
Why Are African Smartphones Non-Competitive? Rwanda's Innovation Minister Explains
Recently, Rwanda's Minister of Information and Communication Technologies (ICT) stated that by the end of 2023, the nation intends to test fifth-generation technology (5G), with the aim of leveraging fast internet to provide services more successfully.
Investment in smartphone and phone manufacturing is eaten away at by higher production costs in Africa when compared to other nations, Paula Ingabire, Rwanda's ICT and innovation minister stated on June 1 during a Senate discussion about the country's ICT development goals.
"We carried out a study last year which indicated that wherever we will try to make or assemble a phone in Africa, the cost will always be five percent higher than that of the phone made from China and Taiwan and imported into Africa, because the raw materials are still expensive, in addition to the labor needed," the minister stated.
As of 2022, 78% of Rwandans were phone owners, but just 25% of them had smartphones, according to Ingabire. She said the nation has been
making efforts, such as seeking investors to produce smartphones in Rwanda, to make it easier for people to acquire such electronic gadgets that can allow them to utilize Internet services.
According to her, the nation's first computer manufacturer was Positivo. Another firm, Mara Phones, followed, and both had difficulties producing cellphones.
"The study helped us to understand that if we want to enter a venture of looking for people to build phones and computers needed in our country and Africa [as a whole], we should consider together the incentives that can be provided so that the five percent [higher cost of production] goes down," Ingabire outlined.
She said companies that manufacture phones have profit margins ranging from 1% to 4%, adding that certain products have more production costs than they are worth as a profit, which is why many businesses begin, but then fail quickly.
"We observed that in different countries such as South Africa, Ethiopia, and Kenya which also started assembly lines, [they] seem to have stopped because of those economies of scale," the minister outlined.
Eddy Sebera, the managing director of Rwanda Mara Phones, told media that the continent's producers of phones were also concerned about the rising manufacturing cost.
"This is a general issue across Africa because we are not the ones who produce the raw materials we talk about. They are imported. […] So, as long [as] we import the raw materials [from] abroad, we will still be," he said.
According to Ingabire, the survey also showed that in order to build smartphones, a person needs an assurance that there will be demand for at least five million devices annually.
"This means that one country cannot manage it alone. It requires that we come together as different countries, because for instance in the case of Rwanda, if those five million phones were produced and distributed, we would have concluded within two years. You cannot venture into a business for only a two-year market, it has to be long-term," the minister noted.
The official stated that Rwanda's objective is to
develop a knowledge-based economy.
According to Rwanda's new National Broadband Policy and Strategy, which was released in October 2022, one of the country's objectives is the implementation of 5G-related infrastructure.
In this regard, during a consultative meeting in the Senate, the country's ICT minister
stated that 16 5G hubs would be constructed this year in collaboration with other telecom companies as part of a pilot program to test the technology.
As more spots that are appropriate for implementation are located, the number of venues is anticipated to increase the following year to 35. According to information from the Ministry of ICT and Innovation, 60 5G stations will be operational by 2025, according to the government.
