CITING economies of scale, improved infrastructure and tax reliefs, among
others, Samsung Electronics has sited its first two African manufacturing
plants in South Africa and Egypt ahead of Nigeria.
Though, Samsung has not ruled out the possibility of a manufacturing plant
in Nigeria, the firm however, disclosed that Egypt’s plant would be
serving Nigeria and other West African countries, while the South African
plant would cater for the region and part of East Africa.
The firm, disclosed this during an interaction with the media at the just
concluded Samsung Africa Forum in Monaco on Wednessday.
Samsung Regional Product Manager, Corrie Labuschange, who admitted that
Nigeria’s market is very strategic to the South Korean firm, said
hopefully in the future, a plant can be located in the country because the
firm has the capacity.
“Nigeria is a strategic market to Samsung and would remain so, but because
of larger economies of scale, well developed infrastructure network and
tax reliefs, we had to start with South Africa and Egypt”, he stated.
He however, disclosed that the firm does some manufacturing in Nigeria,
“though not Samsung owned plant, but a kind of knock down assembly
business with some partners.”
Giving more insight into Samsung’s operations in Nigeria, Head of
Corporate Marketing, Koye Sowemimo, disclosed that the South Korean firm
already has an engineering academy in Nigeria, which is operated in
partnership with the Lagos State government.
He also disclosed that the firm in April 2015, launched its first digital
village in Oban, Cross Rivers state, providing innovative healthcare and
education services to community members.
While the firm said it will use the engineering academies, which are also
in South Africa and Kenya to churn out 1000 engineers yearly, Sowemimo
said the target in Nigeria was to have 100 graduate engineers per academic
year from the academy. He stressed that as part of follow up, Samsung will
after the process, employ some of the engineers and also provide other
forms of opportunities for others.
The firm, which currently has 39 manufacturing plants spread across the
globe, explained that it’s target was to empower 84,000 young people with
necessary ICT skills from 2013 to 2019, across the globe.
Furthermore, the firm said the engineering academies are expected to
fast-track the entry of African youths into the electronics job market and
thereby reduce the shortage of scarce skills in the IT industry.
Chief Executive Officer and President, Samsung Africa, Yoo Young Kim, said
the forum was packaged yearly to give African consumers more choice and
new products, stressing that the firm also uses the gathering to unite and
strengthen the region’s market.
Young Kim, who gave this year’s theme as: ‘One Beat, Rise Above’, said
Samsung was very keen on meeting the diverse needs of people in Africa
with technology so that the continent can rise above the present level.
The firm, which claimed to contribute 29 per cent to South Korea’s Gross
Domestic Product, disclosed that it plans to spend about $490 million in
social responsibilities activities across its markets in 2016