Africa offers RFID potential despite high cost
17 September 2008
News
Information from Frost & Sullivan
The use of radio frequency identification (RFID) applications is advancing and creating significant opportunities in many African countries.
Various sectors have already started using this technology even as green field opportunities still exist and projects for RFID deployment continue to increase.
New analysis from Frost & Sullivan finds that there is a particular demand for low-cost tags in the African environment.
“The low uptake of RFID in Africa provides a spectrum of green field opportunities for its growth, since several potential sectors have not yet deployed the technology,” notes research analyst Letticia Mulenga Nkumbula. “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. In this regard, RFID applications provide security and tracking features that are sought by various sectors in order to reduce losses and improve operational efficiency.
However, the cost of deploying RFID applications is generally high. As a result, the cost of using RFID for low-value/volume items cannot be justified. The high number of small- to medium-sized sectors in the continent further exacerbates the situation.
“Despite the various benefits that can be achieved using RFID applications, the industry is dominated by low-cost alternatives that obstruct it from realising its full potential,” cautions Nkumbula. “Alternative products are able to meet the requirements of several sectors of different sizes, regardless of the product value or volume of production.”
Designing low-cost tags to meet different industry requirements is critical to obtain early market positioning, particularly for price-sensitive African markets. 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.
For more information contact Patrick Cairns, Frost & Sullivan, +27 (0)21 680 3274, [email protected], www.frost.com
Further reading:
From the Editor's desk: Growth through inclusivity
Technews Publishing
News
As the engineering fields in South Africa continue to make progress toward gender equality, we are finally starting to see the presence and contribution of women in engineering and industrial roles.
Read more...
KITE 2025 proves its value
News
The KwaZulu-Natal Industrial Technology Exhibition (KITE) 2025 confirmed its place as KwaZulu-Natal’s must-attend industrial event, drawing thousands of industry professionals.
Read more...
Otto Wireless Solutions announces promotion of Miyelani Kubayi to technical director
Otto Wireless Solutions
News
Otto Wireless Solutions is proud to announce the promotion of Miyelani Kubayi to the position of technical director, effective 1 August 2025.
Read more...
DMASS experiences continued slowdown
News
The European electronic components distribution market continued its downward trajectory in the second quarter of 2025, according to new figures released by DMASS.
Read more...
World-first zero second grid-to-backup power switch
News
JSE-listed cable manufacturer, South Ocean Electric Wire, has completed a solar installation it says marks a global first: a seamless switch from grid to backup power in zero seconds.
Read more...
News
OMC deploys cobots to improve throughput 10x, while maintaining quality and ensuring consistency of fibre optic production.
Read more...
Cobots for opto production line
News
OMC deploys cobots to improve throughput 10x, while maintaining quality and ensuring consistency of fibre optic production.
Read more...
SACEEC celebrates standout industrial innovation on the KITE 2025 show floor
News
Exhibitor innovation took the spotlight at the KITE 2025 as the South African Capital Equipment Export Council announced the winners of its prestigious New Product & Innovation Awards.
Read more...
SA team for International Olympiad in Informatics
News
The Institute of Information Technology Professionals South Africa has named the team that will represent South Africa at this year’s International Olympiad in Informatics.
Read more...
Anritsu and Bluetest to support OTA measurement
News
Anritsu Company and Sweden-based Bluetest AB have jointly developed an Over-The-Air measurement solution to evaluate the performance of 5G IoT devices compliant with the RedCap specification.
Read more...
printer friendly version