German technology company Siemens will invest EUR200 million in Africa by 2012 to boost its order book.
Speaking at a press conference on Friday, Siemens global CEO Peter L"oscher said the organisation had annual orders worth about EUR1 billion from companies on the continent. He noted Siemens wants to triple that amount by 2012.
“To achieve that, we will invest about EUR200 million by 2012 to develop our business throughout Africa. Africa is a continent of great opportunities.” L"oscher explained that Siemens would forge new business partnerships and introduce more affordable technology products as part of its investment.
Siemens was also celebrating the fact that it had been in SA for 150 years, and would support the African Green City Index, which determines which country has the greenest city on the continent.
“Africa offers Siemens vast opportunities for growth. As a green infrastructure pioneer, we're a natural partner for mastering the continent's major challenges. Renewable energies, in particular, have a huge potential in Africa,” commented L"oscher.
Siemens is a global company focusing on electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company, which has been around for 160 years, is the world's largest provider of environmental technologies, generating EUR23 billion - nearly one-third of its total revenue - from green products and solutions.
In the last financial year to September 2009, it achieved revenue of EUR76.7 billion and net income of EUR2.5 billion. At the end of its last financial year, it had about 405 000 staff in 190 countries around the world.
Vital areas
L"oscher said the company will focus on green energy technology, which is in great demand on the continent, as well as affordable healthcare technology.
“We're world-leaders both in energy technology and on the water market. To exploit our opportunities in these fields, we're strengthening partnerships with African companies and institutions.”
Siemens will also make use of local expertise in the healthcare area. Due to budgetary constraints, hospitals in African cities are increasingly being built with the help of private-sector financing. Siemens intends to participate - as a consortium member, for example - in these private-public partnerships.
The company will tap additional African business fields by introducing medium-priced products that have been especially developed for emerging countries. These entry-level products for the middle market segment have the same high quality as high-end products, but a smaller range of functions, making them more cost-effective.
Siemens has bundled its individual African companies into five sales regions. There are more than 3 000 employees in Siemens' Cluster Africa, which includes more than 50 countries.
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