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 (ICT.frost.com), Potential for RFID Applications in Africa, 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 Frost & Sullivan 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. 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 applications 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.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the potential for RFID applications in Africa, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email
Potential for RFID Applications in Africa is part of the IT Services & Applications Growth Partnership Services Programme, which also includes research in the following markets: Mobile Content Services, Analysis of African Fixed Telecommunications Service Providers' Capital Expenditure, Strategic Overview of the South African Open Source Market and South African Hosted IP Services Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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