Telecommunications solutions provider Huawei considers Africa as more than merely a market, but as a talent pool.
This underpins its recent decision to open a training centre in Johannesburg and it plans to open similar facilities elsewhere on the continent.
Huawei COO Bo Xue explained that this enables the company to transfer next-generation skills to local partners and stakeholders, while also overcoming Africa`s skills shortage, ensuring it has qualified engineers and technicians to fulfil its requirements.
The SA-based training facility, unveiled in July, is the sixth such centre to be opened in Africa, and the next one is planned for Angola in the near future.
Speaking to journalists at Huawei`s headquarters, in Shenzhen, China, global corporate communications head Ross Gan points out that the company does not have a specific focus on emerging markets, as its global growth has been spread fairly evenly over the last few years.
Last year, the company saw 166% contract sales growth in Europe, albeit off a low base, while the African market delivered growth of 36%. China, which grew by 12% during 2007, remains the company`s biggest market.
During 2007, the company saw "good progress" in the South African market, having secured $40 million in contract sales in the country alone, and some $2 billion in the southern African region. It expects a better year at the end of 2008.
Having recently concluded the roll-out of Vodacom`s WiMax network in SA, as well as a similar network for MTN Nigeria in the West African country, the company describes its investments in Africa as being made in tandem with market opportunities.
Currently, Nigeria is the company`s biggest market, accounting for $600 million to $700 million in revenue last year. However, SA remains a strategically important market, the company says, as it often sets the trends for African telecommunications development.
Speaking about its future growth, Gan explains that Huawei remains bullish about emerging markets, adding that the company is seeking to work in harmony with telecommunications operators and competitors.
"We are always open to partnerships and joint ventures, and we encourage competition. Huawei comes from a very competitive market in China, and we would not want to get rid of competition," he says, alluding to the fact that the company will continue to seek organic growth, rather than to actively seek acquisitions.
"The market is potentially big enough for everyone and we are not working to drive out competition."
Its biggest challenge, Gan states, is to increase its brand awareness, especially in the US, where it is seeking its next phase of expansion. The company has also worked hard to shrug off its "made in China" label, and Gan says incorrect perceptions about its size remain most likely due to its rapid growth.
Huawei also has a strong focus on research and development (R&D), investing 10% of its annual revenue in this area. It currently has 12 R&D centres around the world, in countries such as China, the US, India and Switzerland. It is likely, he says, that an R&D facility could be on the cards in Africa in the future.
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