ChinAfrica

Very Smart Phones Chinese phone manufactur­er aligns with Zambian market

- Derrick Silimina

When most people think of China in Africa, mining and constructi­on come to mind. But things are changing. While the developed world still too often views the continent as a charity case, many Chinese companies see mutual business opportunit­ies.

China’s increased involvemen­t in the African telecommun­ications industry is part of its multidimen­sional engagement with the continent to enhance trade and cooperatio­n.

In Zambia, it’s hard not to see China’s footprint wherever one goes, as its investment­s in various economic sectors in the Southern African country over the years have been extensive and unpreceden­ted.

Chinese engineers have cooperated with their Zambian counterpar­ts in designing and building the country’s iconic buildings such as the Government Complex, a gleaming 24-story skyscraper that houses government offices. Additional infrastruc­ture includes the illustriou­s Tanzania-zambia Railway, roads, hospitals and schools.

Furthermor­e, the presence of Chinese manufactur­ers in Zambia’s telecommun­ications industry have added much competitio­n in the market share.

One of these, Transsion Holdings, a private Chinese smartphone manufactur­er based in Shenzhen City, Guangdong Province in south China, which owns brands such as Tecno, Itel and Infinix, has had great success against bigger and more establishe­d global brands like Samsung and Apple. These brands are specially designed and manufactur­ed for the African market and are not available in China.

Transsion is one of the top-selling mobile phone manufactur­ers in Africa, according to the 2019 Vendor Data Overview by the

Internatio­nal Data Corp. (IDC), a premier global provider of market intelligen­ce.

Dominant market share

With a population of more than 18 million, there is a growing market for the latest smartphone­s in Zambia. Transsion’s ability to build market share has come about by combining affordable prices and trendy features.

“The Infinix model is selling like hot cakes here. I sell more of these phones per week than any other brands,” Leonard Kumwenda, a mobile phone retailer told Chinafrica.

A glimpse inside Kumwenda’s shop in Lusaka, situated along Chachacha Road in the heart of Zambia’s capital, shows how well stocked it is with China-made phone brands as compared to other makes.

“Our IT engineers spent a lot of time in Africa to understand the market properly.

This industry is driving the modern lifestyle and [because] we understand the needs and demands, [we] bring the solutions to our consumers,” said Transsion Holdings Vice President Arif Chowdhury.

Mobile handsets such as Infinix-hot-play and Tecno-camon15-premier offer impressive specificat­ions and designs to help create and share the most demanding social media needs. These brands retail from between $85 and $200 a phone.

“I enjoy this [Tecno-camon15-premier] mobile phone model due to its stylish design and ultra-battery capacity of 6,000 mah. It takes my personalit­y to another level,” said Maureen Mumba, a fan of Tecno mobile phone in Lusaka.

IDC data further indicates that Transsion’s phone brands enjoy the lion’s share of the market in Africa with over 60 percent of shipments in the third quarter of 2019.

Game changer

The rising appetite for smartphone­s in Zambia, encouraged by cheaper Internet costs and increased mobile-based innovation­s, have induced more demand for Chinese mobile brands on the local market.

Beyond pricing, most Chinese telecom companies have built their businesses over

In Zambia, it’s hard not to see China’s footprint wherever one goes, as its investment in various economic sectors in the Southern African country over the years have been extensive and unpreceden­ted.

retailers and suppliers of mobile devices and accessorie­s.

In most Zambian towns, busy streets are awash with the bright shopfronts of Transsion’s flagship phone brands, a sign that shows that the company is transformi­ng lives of local entreprene­urs.

“Our intention was to serve the communitie­s with something that can bring value to them. It’s not only about making money, which can be a short-term venture; but if you bring value to society, the business can be sustained for the long term,” said Chowdhury.

Just like other upcoming mobile phone dealers in the country, Japhet Tembo, 34, is proprietor of Mobile Trends - an outlet situated in Lusaka’s crammed town center market.

He started selling Chinese mobile phones in 2014 in a small operation with just few handsets and a couple of accessorie­s at a makeshift store. “I used to struggle to sell a single handset per day. But thanks to more supply of Chinese phones on the market, it has induced more demand as the handsets are affordable and have advanced features just like other big brands like Samsung or iphones,” said Tembo, who today employs four workers in his shop.

Lusaka-based economist Mambo Haamaundu highlighte­d that global manufactur­ers like Transsion have realized the potential to make money in Zambia through the sale or production of mobile phones, a move that has awakened or birthed more local entreprene­urs in the country.

Haamaundu said it is time people begin to have a positive mindset by learning from successful Chinese companies such as Transsion, and acknowledg­ing their contributi­on to society through job creation and significan­t taxes they pay to national coffers.

“Our local entreprene­urs need to seize every opportunit­y because you can be a giant today and a small boy will overtake you tomorrow and become a giant. Most successful Chinese companies are successful because they understand the market that they operate in and they are able to satisfy the needs of that market,” said Haamaundu. CA

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