Tuesday, September 2, 2025
28.4 C
Lagos

Socio-economic Challenges Sink African PC Market

The African PC market sank to new lows in the second quarter of the year amid a slowdown in GDP growth, increasing unemployment, and the strengthening of the dollar against many of the continent’s currencies.

Figures released today by International Data Corporation (IDC) show that the market followed up its first-quarter decline of 11.8% with a 26.7% year-on-year downturn in shipments during Q2 2015, the largest slump the market has ever suffered. While IDC believes that the PC market will continue on its downward trajectory into Q3 2015, growth is expected to pick up from the last quarter onward.

“Kenya suffered the continent’s biggest fall of the quarter, with shipments to the country down 54.5% year on year, with Ghana and Algeria following with declines of 40.9% and 40.2%, respectively,” says Joseph Hlongwane, a Research Analyst at IDC Sub-Saharan Africa.

“The significant decrease in PC demand seen in Kenya can be attributed to sluggish economic growth brought about by falling exports and a declining production sector that is characterised by slow job creation. The poor performances of the markets in Ghana and Algeria were also caused by a slowdown in economic growth arising from severe energy constraints and unsustainable levels of domestic and external debt.”

South Africa remains the biggest PC market on the continent, accounting for 35.5% of total shipments, but the country followed up its 4.2% year on-year decline in Q1 2015 with a decrease of 12.8% in Q2 2015. This was largely due to continuing cannibalisation of the market by smartphones and tablets as well as shrinking consumer disposable incomes due to the rising prices of necessities such as petrol and food. South Africa’s PC market is expected to continue declining since the current economic challenges are set to remain throughout 2015.

Neighboring Botswana performed better than expected to post the highest year-on-year growth rate across the whole continent. This growth follows the successful democratic elections that took place in the country in October 2014 and was driven primarily by the commercial sector, which accounted for 87.6% of the total market. Botswana is expected to see ongoing year-on-year growth in the final two quarters of the year.

spot_img
spot_img

Hot this week

Ecobank Nigeria @ 40: Group Unveils N60m in Cash Rewards Program for Customers

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

GOCOP 2025: Conference on Governance Challenges, Prospects Set for October 9

The Guild of Corporate Online Publishers (GOCOP) has announced...

NCC Advances Cybersecurity Framework to Safeguard Nigeria’s Telecom Infrastructure

L-R: President, International Youth Parliament, Hon. Promise Digos; Chief...

Northwest: The Lion’s Share of Tinubu’s Projects

By Tanimu Yakubu Director-General Budget Office of the Federation The Lagos Illusion The...

From Devaluation to Domination: How Tinubu’s Exchange Rate Reforms Turned the Naira into Nigeria’s Export Engine

By Tanimu Yakubu When President Bola Ahmed Tinubu’s administration...

Topics

Unilever, Stallion Group Storm Lagos Shopping Festival 2015

Unilever Nigeria Plc, Stallion Group, STACO Insurance Plc and Accion Microfinance Bank Limited have joined a long list of other firms to confirm participation at the maiden Lagos Shopping Festival 2O15 set for December 17, 18 and 19 at Tafawa Balewa Square [TBS], Lagos. The theme of the Festival is: ‘Reinventing the Nigerian Economy via Non-oil Export.’ Other corporate firms set to join the train include Yudala, Skye Bank Plc, Ogun Property & Investment Corporation [OPIC], Wema Bank Plc, Chemical & Allied Products [CAP] Plc, Mr. Biggs amongst others. Prince Cookey, CEO, Lagos Shopping Festival 2O15, says the confirmation of participation by these leading firms is a clear indication that the Festival is on a positive path towards enduring legacy. He said Festival is a bargain opportunity for shoppers and business opportunity for corporate organisations to showcase their products and services in the December shopping season. “December is undoubtedly the NO 1 shopping season in Nigeria. The Festival would be a showcase of consumer goods, financial/insurance services, machinery, automobile and food etc. The essence is to provide consumers the unique opportunity of shopping for a wide range of goods and services at bargain prices while enjoying rare combination of music and entertainment at the venue.”

ATCON: ‘No Comment’ on $3. 9bn NCC, MTN Saga

The Association of Telecommunications Companies of Nigeria has...

UBA Celebrates Resilience, Innovation, Customer Service at 75

The United Bank for Africa (UBA) Plc has attributed...

FCMB Plans African Expansion in 2 Countries

As Nigeria suffers from the actual global plunge in...

NDIC, Senate Committee Retreat on Financial System Stability

L –R: Chairman, Senate Committee on Banking, Insurance and...

OneFi Acquires Amplify to Reshape Nigeria’s Fintech Infrastructure

Amplified Payments Limited, a fintech company that builds and...

Guild of Editors Seek Protection for Journalists as 94 Killed in 2018

The Nigerian Guild of Editors (NGE) has called for...
spot_img

Related Articles

Popular Categories

spot_imgspot_img