Africa set to have its first smartphone manufacturing company

 

A South African start up with 10.8 billion dollars is set to become the first company to manufacture Android smartphones under a licensing deal with Google, reports Bloomberg.

Onyx Connect company is looking at the low costs and growing local demand to build handsets, tablets and other devices based on Google Inc’s android system.

The company will also partner with Vodacom Group Ltd in South Africa which is willing to access high quality devices made in South Africa.

The South African company is setting up a distribution center in 12 to 18 months in Ethiopia which will create over 600 jobs.

The company says it can build a phone with a camera and a gigabyte of memory for about $30 compared to the high prices have to pay for such phones since they are imported.

Onyx Connect’s plan involves tapping into China’s strengths by souring for circuit-board designs and raw components from the Asian country. Onyx Connect says that design work of the phones and its cases, research and development for future models, will all take place on African soil.

‘Some South African companies, including Sekoko Mobile, Zest Mobile and Mint Mobile, are already assembling smartphones from imported kits. By going a step further and actually manufacturing the devices, Onyx is saving on import duties.’ Says the report