Chinese telecom equipment giant Huawei Technologies Company Limited, has revealed plans to have a regional headquarter in Kenya which will help serve the East African market in 2018, Footprint to Africa report.
Kenya is said to also be one of the fastest growing economies in the region and is considered as the anchor of East Africa financial hub.
One of the main driving forces behind its economic success, Footprint to Africa learnt is the rapid development of telecommunications, which is dominated by the mobile sector.
By the end of 2010, the country registered 25 million mobile subscribers, representing a population penetration rate of 61per cent, helping to generate about 89 per cent of the $1.3billion total telecom revenue in the same year.
This robust growth has attracted Chinese telecom equipment giant Huawei Technologies Company Limited which recorded a USD 12 billion on total sale revenue, a growth of 30 per cent in the fourth quarter of 2014 compared to USD 9.2 billion the same period in 2013.
Smart phones shipped globally saw a 45 per cent increase to stand at 75 million units in 2014 compare to 53 million units in 2013.
Patrice Waithaka Muchwe, Kenya’s channel manager of Huawei stated that the hub will help serve the market and also strengthen their presence in the region.
With a market share of 10 per cent in Kenya according to the Economic Report on Africa Smartphone access of 2014 the company sees the growth on the availability on mobile and ICT growth.
In 2014 Huawei shipped 250,000 smartphones to Kenya which resulted to total sale revenue growth 35 million USD.
The Kenya franchise recorded a shipment of 350,000 units to the country, which they realised a total sale revenue USD 37 million.
By the year 2016, Footprint to Africa findings showed that Huawei target to have 20 per cent of the market share and also creates corporate sponsorship to the local football clubs which is a case in South Africa where the company sponsors Ajax Football club.