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Electrical Machinery goods and components

The major Korean electrical and electronics brands have a strong foothold in Africa – for example, Samsung has 35% of the smartphone market and LG has already invested in a local assembly plant in Sudan for washing machines.

Samsung is the leading investor in the manufacturing and assembly of electronic machinery goods in Ethiopia and Sudan.

The Horn is a net importer of electronic machinery. Imports and exports are highest in Ethiopia and lowest in South Sudan.

Ethiopia and Sudan have electronics assembly factories that service the East African market. In Sudan, Haggar Holdings Company assembles and distributes Samsung consumer electronics products. Techno Mobile and G-Tide manufacture handsets for the Ethiopian and East African markets. Samsung has announced plans to open a laptop and printer manufacturing plant in Ethiopia.

Ethiopia and Sudan intend to diversify their economies and enhance their manufacturing capabilities. Ethiopia offers incentives for export-oriented industries while Sudan intends to develop their productive value chains.

Potential entry strategy for new investors:

  • Samsung has previously announced plans to invest in the region, which may support other opportunities in the manufacturing value chain.
  • Djibouti is positioning itself as a regional transport hub and could benefit from Ethiopia’s manufacturing sector as exporter.

Case Study: Samsung Consumer electronics factory in Egypt

Investment value: USD 279.3M
Investment type: Consumer electronics assembly plant
Project completion date: 2013

  • In 2012, Samsung invested USD 279M in building its first factory in the Middle East and North Africa region in Egypt. As of 2017 the factory produces Samsung’s latest QLED television set and a range of monitors.
  • The factory has created an estimated 1,400 jobs and 2,000 indirect opportunities, greatly benefiting the southern governorate Beni Suef where it is located.
  • The factory will position Egypt as a regional hub for the manufacturing and export of Samsung products to all Middle Eastern markets. Within the first six months of operation, the factory registered exports worth USD 400M. To date, about 2.8 million devices have been exported to more than 36 countries in the MENA region.
  • Samsung has since had other investment talks geared at establishing a research and product development center in Egypt.

Korean companies in this sector in Africa:

Samsung

  • Samsung Electronics is engaged in consumer electronics, mobile communications and IT.
  • Samsung operates a factory in Egypt and plans to complete another factory in South Africa in 2018.
  • The company employs over 400,000 people in 79 countries.

LG

  • LG Electronics manufactures and sells consumer electronics, mobile communications equipment and home appliances worldwide.
  • LG has a television assembly plant in South Africa and plans to build a USD 250M home appliances factory in the USA.
  • In 2011, LG was the world’s largest maker of LCD televisions.

SK Hynix

  • SK Hynix manufactures semiconductors like random access memory (RAM) and flash memory chips. In 2011, the firm had the second largest global share within the Dynamic RAM segment.
  • In 2016, SK Hynix announced a USD 2.7B investment in China and South Korea to boost its memory chip production.
  • Currently, they own four production facilities in China and operate sales subsidiaries in 10 countries.

Korean deals in electronic machinery 

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