East African computer market 'growing strongly'

13 Jun 2011

The personal computer market in east Africa expanded by 76% in the first quarter of 2011, even as the worldwide market contracted and the pan-African market almost stagnated, according to a recent report by market research company International Data Corporation.

The company said global personal computer shipments declined 3.2% year-on-year during the first three months of 2011, and the overall African market grew a marginal 1% only. East Africa (including Kenya, Tanzania, Ethiopia and Uganda), however, recorded a 76% growth in shipments.

The east African market is expected to grow by a further 35-45% this year, before cooling off in 2012.

Growth in the east African market was fuelled primarily by a healthy demand for notebooks, with Kenya showing the highest uptake, the company said. This quarter was supported by the resumption of commercial demand and strong advertising and promotion efforts by vendors, as well as their efforts to find new distribution channels and strengthen existing ones.

"We are continuing to see increased interest in the region from international investors, especially with Kenya's new constitution, which is hoped to be fully implemented after the next general elections; Uganda's oil discovery; and the formation of the East African Community market - which has a combined population of over 130 million," said Stanley Kamanguya, an analyst at the International Data Corporation.

Kamanguya said investors were looking at the region as the next frontier for growth, with Kenya as the hub, but warned that the political risk would remain a key issue.

He said the extent of the consequences of the uprisings in north Africa and the Middle East remained unclear, which would affect the market in the short term.

On outlook, Kamanguya said vendors would not rely on pricing or hardware specifications for a competitive edge, but rather on their ability to engage in demand-creation programmes, mobilise channels and articulate a message that their products would provide an unmatched user experience.

Source: I-Net Bridge

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