Hardware Manufacturing

 

The potential for hardware manufacturing in Senegal started with the inauguration of Technopolis at Camberene (Dakar’s suburb) in 1999.  Since January 2000, there is prospect for the building of a 2000 m² PC-production facility.  The project’s name is West African Computers (Wac) and was initiated by a French company (“Ebc Informatique”), based in Strasbourg (France).  A partnership with Hewlett Packard is envisioned, and the company has plans to open a subsidiary.  However, it is a Canadian company (“Infoserve”) that penetrated the market in 2002 through a local company (“Touch Technology Corporation SA”).  Infoserve will be the one to begin production of “customized” (Dell’s way) computers in Senegal.  The company forecasted a total production of 5000 computers for the year 2002.  According to the Canadian Embassy in Senegal, the daily output of the plant was 300 units (3,600 units per year) as of March of 2002 (http://www.infoexport.gc.ca/ie-fr/DisplayDocument.jsp?did=7318). 

According to the forecasts, the plant should produce 25,000 computers per year in its fifth year of operation. 

 

In July 2003, Isabelle Sciamma interviewed Vivianne Dieye, President of “Cati” (“Companie Africaine de Technologies Informatique”).  “Cati” is a joint-venture between a Senegalese firm (“Companie Africaine de Technologie”) and a London-based company (“Time Investment”) which is an investment firm in Information Technology sector.  “Cati” will manufacture “made in Senegal” PCs with parts imported principally from Asia.  The president mentions factors such as the political stability of the country and the cheap labor as competitive advantages.  The plant is currently being built within the Technopolis.  Twenty percent of the outputs are destined to the Senegalese market, while 80% will be exported to African countries that are not part of the West African Monetary and Economy Union, and the rest of the world (http://www.afrikeco.com/articles/economie.php3?id_article=6314). 

 

However, the success of these projects depends on the tariffs’ benefits the companies can benefit from.  So far, the government poses a higher tariff (25%) on locally produced hardware such as computers and telematics than on the imported goods (5%).  I believe the Senegalese government should definitely revise its trading policy to encourage local production (i.e.: reduce the tariff) and simultaneously achieve a better balance of trade.