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AfricaMoney | August 20, 2017

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Sub-Saharan Africa on growth path with NEC investing in regional ICT group XON

Sub-Saharan Africa on growth path with NEC investing in regional ICT group XON

NEC Europe, a wholly owned subsidiary of the Japan-headquartered NEC Corporation, has invested in XON, a pan African ICT group with roots in South Africa, and the two organisations will adopt an integrated market approach that will combine their local expertise in the region to provide greater sales coverage in the regional market and accelerate regional growth for both companies in the telecom, government, enterprise and energy sectors.

NEC Europe is investing in regional ICT major XON, following a joint effort under which they have explored Sub-Saharan African business opportunities together for the past 18 months and identified many areas of collaboration.

Naoki Iizuka, President and CEO, NEC Europe, says: “NEC has been operating in Africa for over 50 years through its representative offices and partners. Moreover, we enhanced our operation by setting up NEC Africa in 2011. This has enabled us to win many major contracts with government bodies, mobile and fixed operators and blue chip enterprises. With this strategic investment in XON, we’ll be able to meet pent-up demand for NEC’s solutions by massively expanding our Sub-Saharan African business consulting, systems integration and managed service support footprint as well as sales coverage.”

NEC and XON will jointly carry a wider footprint across Africa to better support, service and maintain wherever their customers operate. The NEC products and solutions complement XON’s current service offerings, and XON in turn is positioned to bring these world-class products and services to the African continent.

The mutually exclusive structure for Sub-Saharan Africa will enhance solutions offered by both firms by expanding the scope available to service customers under NEC and XON’s current business lines.

However, it may be noted that NEC’s Enterprise (Unified and ITPS) and display businesses in this region do not form part of the exclusivity agreements and NEC’s existing channel business will continue with business as usual.
To elaborate on XON, the premier regional ICT firm based in South Africa designs, builds and operates high performance networks for customers in the fixed and mobile network, public sector, retail and financial services industries and provides managed and outsourcing services.

On the other hand, Japan-headquartered ICT major NEC is a global Juniper Networks Service Provider Infrastructure Partner with Elite specialisation in Advanced Network Infrastructure.

On 17 July 1899, the NEC Corporation was established as Japan’s first joint venture with foreign capital, by founder Kunihiko Iwadare in association with US firm Alcatel-Lucent.

The addition of XON’s deep IP networking and security skills set will strengthen NEC’s Juniper regional expertise in Europe, the Middle East and Africa (EMEA), including Russia, and will form the foundation of NEC’s regional Juniper and IP expertise.

“Our vision at NEC is to create solutions for society. With our XON tie up we are much better positioned to bring these solutions to Africa. We expect our synergies and growth opportunities will see us develop a significant African presence through which we can better serve our customers,” says Eugene Le Roux, MD and President of NEC Africa.

“Benefits of the deal include the reinforcement of our South African B-BBEE credentials to level 3, and our customers in the region gaining use of XON’s network operations centre (NOC) and security operations centre (SOC). There is also a wider regional synergy around sharing IP and security competencies across Europe, Middle East, Africa and Russia.”

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