The low uptake of RFID in Africa provides a spectrum of greenfield opportunities for its growth, since several potential sectors have not yet deployed the technology, says research firm Frost & Sullivan.
In its latest report, entitled 'Potential for RFID Applications in Africa', Frost & Sullivan research analyst Letticia Mulenga Nkumbula.says: "Government support for various RFID projects in the continent indicates that a number of new sectors will adopt this technology."
Theft, fraud and counterfeit products are widespread in many parts of Africa, she says. "RFID applications provide security and tracking features that are sought by various sectors in order to reduce losses and improve operational efficiency."
However, deploying RFID applications remains expensive and the cost of using RFID applications for low-value or low-volume items cannot be justified. "The high number of small to medium sectors in the continent further exacerbates the situation," says Nkumbula.
Designing low-cost tags to meet different industry requirements is critical to obtain early market positioning, particularly for price-sensitive African markets, explains Nkumbula. "Emerging sectors that can use RFID need to be identified, while ensuring that well-established links with such sectors are made in order to take advantage of the available opportunities."
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