“Business has not been favourable, because of the stiff competition from the phones being dumped on the market from China which are heavily subsided. This has resulted in us failing to fully penetrate the local market"
Mobile phone assembling plant M-Tech chairperson Mohamed Seedat says the increasing number of imported mobile phones on the market has impacted negatively on the firm’s growth. M-Tech mobile handsets are in the range K140,000 - K150,000 but the market is flooded with cheaper handsets with some costing as less as K50,000. Little surprise therefore that Mr Seedata is calling on Government to come up with "policies that will protect the local industries". A particular problem he has flagged up is the tendency for "handsets allegedly being imported duty-free".
I understand his argument but this would be the wrong industry to impose restrictions on. Low costs of communication regardless of how such costs are driven down is good for country because they drive down transaction costs and improve market discovery especially in rural areas. We need more cheap mobiles. There's really no point having local industries which are not built on lasting or unique advantages.