Tuesday, October 7, 2025
27.7 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
spot_img

Hot this week

Ecobank Nigeria Launches Upgraded Mobile App for Faster, Smarter Banking Experience

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

Ortom, NOA DG, Others to Feature as Panelists at GOCOP 2025 Conference

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

AIICO Celebrates Retiring Employees: Honouring Decades of Service with Gratitude

Left - right: Adeleke Adeshina (rtd), Lanre Oladehinde (rtd.),...

Nigeria’s Banking Woes: How One South African Bank Outvalues an Entire Industry

It is a sobering reality that one South African...

Topics

The 5 Outcomes of the Work Culture Shift

By Elvis Eromosele Anxiety about the future of work had...

Glendora, Red Star Express Partner over King’s College History Book

The King's College Old Boys' Association Centenary Committee recently...

COVID-19: NCC’s 112 Emergency Number Offers Succour to Nigerians

    The National Emergency Number 112 established by the Nigerian...

FG Plans Lower Taxes for SMMES to Stimulate Economy

The Federal Government is set to reduce the income...

NGX Chief, Umaru Kwairanga, to Chair Business Journal Fintech Roundtable 2025

Dr. Umaru Kwairanga, Group Chairman, Nigerian Exchange Group (NGX)...

Stanbic IBTC Charts Course for Real Estate Dev in Nigeria

Stanbic IBTC Asset Management, a subsidiary of Stanbic IBTC...

Sovereign Trust Insurance: 25 Years of Commitment to Professional Underwriting

Sovereign Trust Insurance Plc no doubt has become a...

BUHARINOMICS: Charting Path to Sustainable Economic Renaissance

The presidential election was over on Saturday, March 28, 2015. It is now a historical document for academic research and street political analysis. On March 28, CHANGE triumphed over TRANSFORMATION AGENDA, leading to the emergence of General Muhammadu Buhari as President, Federal Republic of Nigeria. On May 29, Buhari assumed the leadership of the nation, bringing to an end, the regime of Goodluck Jonathan. For Buhari, it is a long road to Aso Rock. Three times he contested and lost. And three times he dusted the stinking ashes of defeat to rise again to seek for the same office. And on the fourth effort, he won. Either fortune smiled on him or the Gods took pity on him and handed him the office to break the cycle of defeat and save him from the poisoned pen of harsh historians and political propagandists.
spot_img

Related Articles

Popular Categories

spot_imgspot_img