Latest ICT Africa Article Reveals Reasons Behind the Failure of American Telecom Equipment Vendors to Capture Lucrative African Market

NEW YORK, Sept. 10, 2013 /PRNewswire/ -- ICT Africa (http://www.ictafrica.info) today announced the release of its latest informative article on information and communication technology (ICT) in Africa. The new article explores why American telecommunication equipment vendors have failed to capture any of the lucrative African telecommunication infrastructure market.

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According to the article, Chinese vendors are capturing about half of the African telecommunication equipment market while the Europeans get most of the remainder, leaving American vendors with next to nothing. The loss of business by American telecommunication vendors in Africa has been blamed on the Obama administration's bossy big brother attitude towards Africa.

The Chinese vendors have benefited from their government's friendly and brotherly relationship with Africa and the vendor financing of African projects by China EXIM Bank. The Europeans have leveraged on long standing relationships with the African continent and established many bilateral relationships with African countries that help their vendors win the telecommunication equipment business in Africa.

"In order to promote investment by European companies and to help European vendors gain market share in Africa, many European countries have established Investment Promotion Agencies (IPAs) and developed bilateral investment treaties (BITs) and double taxation treaties (DTTs). For example, it costs 5% (or less) duty for a European company to ship a product into South Africa due to treaties that exist between Europe and South Africa. It costs 15% for an American vendor to ship into South Africa, making it more competitive for European vendors to supply products to Africa than their American competitors," according to the article.

"The Obama administration has to get off the high horse, treat Africa as an equal trading partner and easy the conditions for doing business with Africa if American optical transport equipment vendors should be involved in the African ICT revolution," said Dr. Jabulani Dhliwayo, guest contributor at ICT Africa.

The article can be found at http://ictafrica.info/FullNews.php?id=10732

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SOURCE ICT Africa