Samsung Electronics is going to boost investment in Africa. It is also planning to expand the scope of locally-made products, and to establish an R&D center.
According to industry sources on March 24, the Korean tech giant has decided to make an additional investment of US$40 million (around 43.2 billion won) in its factory in Beni Suef Governorate, Egypt, after its initial investment of US$100 million. The factory is located in the Upper Nile region, which lies about 120 km south of Egypt’s capital of Cairo.
Completed in September of last year, the 366,000 m2 plant produces TVs and monitors for ten countries in the Middle East and Africa. The company is scheduled to increase the production of washing machines, refrigerators, and air conditioners, and to build an R&D center near the plant with this extra investment.
Samsung’s decision to make another investment amid its retrenchment strategy can be interpreted as part of it strategy to utilize Egypt as an outpost to target the Middle East and North Africa. The country’s huge domestic demand and abundant labor pool are also cited as additional factors. On top of that, Egypt’s corporate taxes have decreased from 32 percent to 20 percent.