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East Africa PC shipments grow 3%

By , IT in government editor
Kenya , 28 Jan 2014

East Africa PC shipments grow 3%

Ethiopia, Tanzania and Uganda have helped boost personal computer (PC) shipments in the East African region, according to the International Data Corporation (IDC).

The research firm has revealed that PC shipments to East Africa increased by 3% year-on-year in the final quarter of 2013 to total 140,251 units.

The three nations each had impressive year-on-year PC shipment growth with Ethiopia, Tanzania, and Uganda recording an increase of 31.7%, 18.7%, and 20.1% respectively.

An improved and continually expanding business environment and increased consumer spending in those countries helped improve year-on-year PC shipments, the IDC has said.

16% VAT induces Kenyan PC market slump

Meanwhile, East Africa's largest economy Kenya experienced losses in the number of PC shipments to that country.

PC shipments contracted by 10.7% year on year in the fourth quarter of 2013, according to the IDC.

IDC officials have blamed the slump in Kenya's PC shipments on the introduction of a new VAT legislation added onto all ICT products.

James Mutua, research analyst at IDC East Africa said, "The bill's introduction, which sees a levy of 16% added to all ICT products, resulted in a huge loss of business due to logistical issues caused by the hasty implementation of the new regulations by the Kenya Revenue Authority."

The IDC also expects IT spending in Kenya's government sector to be hit hard in 2014 following a treasury directive to all government departments to freeze all purchases of computer equipment, among other things, in an attempt to cut costs.

The research firm also stated that it expects the share of so-called 'all-in-one' (AIO) desktop PCs in the region's overall market to improve tremendously in 2014 as more vendors begin to compete in this category.

Kenya’s decrease in PC shipments is also in line with global statistics as the IDC revealed earlier this month that overall shipments in Europe, Middle East, and Africa region declined by 6.4% compared to the same quarter last year.

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