Why doesn't Samsung have a manufacturing plant in Nigeria yet?

diamond hope

January 19, 2018 10:26 AM

Samsung products may be popular in Nigeria but unfortunately it still does not have a manufacturing plant in Nigeria.

On Thursday, January 18, 2018, the Chief Executive Officer of Samsung Electronics Africa Sung Yoon said that one of the reasons for not establishing a manufacturing plant in Nigeria is because its market share in the country is not big enough.

Yoon said this during an interactive session with journalists where he also said that though Samsung was the leading consumer electronics company in Nigeria, its share of the Nigerian market is smaller in comparison to South Africa’s. He said that the company’s smartphones market size in South Africa is 80%, but is lower in Nigeria.

According to Yoon, other issues that affect the building of manufacturing plant in the country are infrastructure, Return On Investment (ROI) and grey market.

"We are trying to be a local company here. Building factory depends on the return on investment and efficiency of the economy. There are lots of grey products coming into the country and this will affect the return on investment," he said.

He said that manufacturing a mobile phone required about 400 different components, none of which is available in Nigeria yet.

He said that annually, the company spent $16 billion globally on research and development, sold over 700 mobile phones every minute and over 41,000 every hour, globally.

Yoon said that the company’s global vision was to inspire the world and create the future, through its innovative technologies, products, and designs that enriched people’s lives and contribute to social prosperity.

diamond hope