Global information and communication technology giant Acer is progressing plans to expand in the Southern African Development Community (SADC) region as localisation efforts globally are thrust to the top of agendas.
The company has been reviewing opportunities of bringing its products closer to markets, with assembly plants planned across the continent, says Acer South Africa director Paul Collins.
Acer is currently segmented into three regions in Africa, namely the SADC region, the west region, which has Nigeria and Ghana as hubs, and the east, region, covering Uganda, Kenya and Tanzania.
“We are rolling out local assembly plants. We are quite far down the line in some areas, talking to governments already, aiming to involve government under public–private partnerships,” he tells Engineering News & Mining Weekly.
“These negotiations take a bit of time, however – we are progressing quite nicely.”
The group is seeking to bring an assembly hub to Botswana, or potentially South Africa, to serve the SADC, as a hub, and Zambia.
The first line, either in Zambia or Botswana, is expected to come become operational in 2021.
These new lines are expected to create a significant number of new opportunities for small businesses to service these hubs.
These include call centres, logistics and all the other peripheral products that will support the business as it becomes established.
“These are the types of investments we are looking at,” he says, noting that the drive into Africa will also focus on the elements of the Fourth Industrial Revolution currently under way, which is disrupting and threatening industries globally.
His comments come amid the disruption and potential subsequent deglobalisation of supply chains, owing to the mass lockdowns and restrictions as a result of the Covid-19 pandemic globally.
“Many were caught by surprise, particularly as a large market of international supply chains is managed out of China and its surrounding countries.”
International ChangeThe unexpected breakdown of supply chains is leading to an international change in the methodology regarding how the world operates.
The largest companies are going to start breaking up operations into ‘hub’- style bases and move products and services to countries closer to their markets.
“We will see more of localisation and transport closer to markets,” Collins comments.
Further, with people and businesses deprived of products and services they required over the past six months, there is now lot of price elasticity, and they are willing to pay more.
This presents South Africa with the opportunity to revitalise several industries, including the textile industry, which was once booming.
However, using the digital era will be critical, along with creating a knowledge base.