Africa defies global recession through computer usage

AFRICA is forecasted to defy the global economic recession and experience growth in demand for personal computers.

This is according to a projection by IDC which projected the continent to be one of the few regions that will experience such demand.

“As the economic crisis continues to evolve – constraining GDP, consumer and commercial confidence, capital and credit availability, and creating other challenges – global demand for PCs is expected to slow quickly – but Africa is tipped to be one of the few regions that will continue to enjoy healthy growth,” IDC said.

It said worldwide PC shipments to grow just 3,8 percent in 2009 with shipment value falling by 5,3 percent.

It however added, “Emerging markets in Latin America, Central Europe, the Middle East and Africa are among the most significantly affected in the short term. Falling commodity prices, a rising dollar, and restricted credit have had a dramatic affect on consumer and distribution channel financing. These regions have been among the fastest growing markets over the past several years as falling prices helped new users acquire systems.”

Richard Shim, personal computing research manager, added: “Declining shipment growth in the consumer market along with the relatively stagnant commercial market will lead to fewer opportunities and more intense competition in the US PC market.

Consolidation is expected as PC makers tough out the competitive climate amid lower than expected volumes and thinner margins.