The first South African built smartphones and tablets are to be launched within the second half of 2014 by Mint Electronics. This follows a landmark deal in which Mint Electronics, a subsidiary of Sekoko Holdings, has acquired a 75% shareholding of CZ Electronics
CZ Electronics was established in 2002 with the acquisition of the production assets of the Alcatel factory in Boksburg. The company employs 300 staff, most of which are previously disadvantaged women.
CZ Electronics has invested close to R10-million on research and development over the last 24 months thus enabling them to manufacture smartphones and tablets in South Africa. This manufacturing process will not only include assembly, but will also utilise CZ Electronics’ sophisticated surface mount technology (SMT) to build the circuit boards.
CZ Electronics has identified the need to restructure its shareholding in order to introduce a new partner who will address both capital requirements and its empowerment credentials. The purchase price for this reorganisation concluded between the parties is confidential. They can however confirm that the consideration materially reflects the Nett Asset Value of CZ Electronics.
“We are enormously proud of the first mass-market smartphone and tablet to be designed and manufactured right here in South Africa by South Africans,” says Mint Electronics CEO, Oupa Magashula.
Sekoko Holdings has identified the need to diversify its investment portfolio due to the large amount of capital that went into the development of its mining projects over the last eight years. To this end, Sekoko Holdings has made the decision to diversify into other sectors so as to counter the very cyclical nature of mining. The mining assets will still resort under Sekoko Resources.
In the beginning of 2013, Sekoko Holdings also started Reliance Life, a financial services business which is expanding its platform into a fully-fledged Assistance and Insurance business for the emerging market.
Chief operating officer of CZ Electronics, Rob Bruggeman, says, “Prior to concluding the deal with Mint Electronics, the entity explored many other opportunities to find a suitable partnership to deliver its strategy.
“Now, with Mint Electronics, we have found a partnership that will enable us to successfully deliver on our strategy.
“Our aim is to provide Africa and the rest of the emerging world with the choice of purchasing a top-quality, world-class product that’s affordable because it is made in South Africa.”
The smartphone and tablet will be produced at the Boksburg manufacturing plant. The company has a capacity of approximately 280 000 components per hour. It specialises in electronic assemblies for the telecoms, signalling telemetric, defence, utility metering, vehicle tracking and data acquisition industries.
“Designed to the highest specifications and built in accordance with the ISO 9002:2008 standard, we believe our smart phones and tablets will revolutionise the market, offering ordinary South Africans a highly competitive alternative to existing products,” he continued.
“The market can expect a fresh approach to mobile communication and an affordable education solution for learners in a tech savvy and reliant world,” adds Oupa Magashula
More details on the products are expected within weeks.
