Mobile phone giant Huawei eyes huge opportunity for expansion in Africa
Revenue from the continent could rise by as much as 30 per cent in the next three years
Huawei Technologies, China's largest phone-equipment maker, said revenue in southern and eastern Africa may climb as much as 30 per cent in the next three years as growth on the continent outpaces most regions.
The company plans to capitalise on low mobile-broadband penetration rates and increasing demand for smartphones in Africa, Li Dafeng, president for eastern and southern Africa, said in the capital Nairobi.
Huawei, based in Shenzhen, will also focus on developing its enterprise business that supplies equipment to governments and companies, he said.
Africa has less than five mobile-broadband subscriptions per 100 inhabitants, compared with more than 10 per cent in the rest of the world, according to the International Telecommunications Union, a Geneva-based industry group. Over the next five years, the continent is expected to be the fastest growing region in terms of mobile-phone connections, according to AT Kearney, the Chicago-based consultancy.
"There is still much room to grow, so we can see that in the next three years network availability will be improved greatly," said Radoslaw Kedzia, Huawei's chief technology officer for the east and southern Africa region. "This is why we can grow 20 per cent to 30 per cent."
Economic growth in sub-Saharan Africa is expected to accelerate to 5.7 per cent next year from 5 per cent this year, outpacing every other region except developing Asia, the International Monetary Fund said.