
Gone are the days when the appliances and technology shown on American and European films took eons to
get to Africa. Now, if you see a foreign advertisement of a fancy fridge that dispenses crushed ice and has AI
capabilities to read labels and recommend shopping lists, you can walk into a shop and buy it for your home.
Driven by demographic shifts, economic resilience, improved technological and technical capacity, and mounting
investor interest, East Africa is beginning to carve out a new role in the global home appliance value chain. This
change has seen the region not only increase uptake of the latest products but also grow as a key point for
assembly and even development of new home appliances. The region is no longer content with being a laggard;
it is beginning to participate in shaping the industry itself.
At a macro level, the fundamentals are compelling. Rapid urbanization, growing population, and a growing
middle class supported by unprecedented mobile and digital penetration means consumers are becoming more
discerning and seeking reliable appliances that fit into their lifestyles.
Whereas appliances were mostly aspirational, they continue to become a priority for many households. Fridges
and TVs are no longer seen as luxuries, but as necessities. In coastal homes, HVAC units are becoming more
commonplace as the residents seek to deal with stifling heat and humidity. This expanding consumer base is one
reason why manufacturers are taking East Africa more seriously, but it isn’t the only one.
The cost and complexity of global supply chains came into increased focus during the COVID-19 pandemic.
Companies had to quickly rethink how they manufacture and distribute. While Africa long seemed an export
destination, it is now being considered as a potential base for regional assembly and even full-scale production.
East Africa, especially Kenya, provides a strategic advantage through its proximity to the Indian Ocean’s shipping
routes, growing internal transport routes, and access to both emerging and established markets. Furthermore,
the development of the African Continental Free Trade Area (AfCFTA) reduces tariffs and facilitates movement of
goods across borders. As infrastructure improves, the argument for moving manufacturing, assembly and major
distribution hubs to East Africa grows stronger.
What stands out in recent years is not just that global appliance companies are selling more within the region,
but also the interest shown by senior leadership teams. Executive visits to hubs like Nairobi are not just routine
check-ins with local teams; they are strategic visits to assess market conditions and evaluate opportunities as
they lay the groundwork for deeper investment.
Earlier this year, the LG Middle East and Africa region CEO, Phil Won Jung, visited Kenya to strengthen
partnerships within the country and region. He had key discussions with several distributors to understand the
market, its challenges, and opportunities. This signals a commitment to the region and the potential for even
more investment.
In future, such visits are likely to focus on different areas important to the global manufacturing and distribution of
home appliances. We are likely to see an uptick in local training and certification of maintenance technicians,
expanded service networks, new distribution models, and even local assembly.
As long as the region continues to position itself as a gateway to consumers and supply chains, it stands to
benefit immensely. The full gamut of manufacturing jobs and revenue, technical training, improved product
access, and a stronger position within the global market are all within reach.
This shift can have a ripple effect on local innovation. As maintenance, and later design and production, become
more localized, there’s greater potential for products to be tailored to regional conditions. This can be solar-
powered appliances for off-gride access, or dust-resistant electronics for some of East Africa’s harsher areas.
What’s needed is follow-through from manufacturers and governments alike – deeper investment, improved
infrastructure, better business environment, more inclusive supply chains, and commitment to building local
capacity.
As the industry evolves, East Africa is showing that it is ready to lead and help share the future of home
appliances for Africa and the world.
-The writer is the President of LG East Africa
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