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How to set up and operate a successful computer refurbishment centre in Africa
Bridges.org
November 01, 2004

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Executive summary

Tapping the potential of refurbished computers for Africa
More Africans need to get their hands on computers in order for African countries to tap the potential of information and communications technology (ICT) to improve lives. But the price of new computers puts them beyond the reach of most organisations and individuals in Africa. And the overall lack of technical skills also limits the widespread use of computers across the continent. Locally owned computer refurbishment centres offer some promise to address these issues. But establishing such a business in an African setting may call for more than just a viable refurbishment operation: everybody wins when a related social purpose is embedded in the business plan. When used equipment is donated to refurbishment centres it helps keep costs down, while at the same time solving problems for big companies that have social corporate responsibility obligations and which increasingly face environmental mandates on hardware disposal.

But there are only a few successful computer refurbishment centres in Africa at present, and very little is documented about their experiences for others to learn from. "How to Set Up and Operate a Successful Computer Refurbishment Centre in Africa: A Planning and Management Guide " is the result of a study undertaken by bridges.org in early 2004, which examined the methods and strategies of the computer refurbishment industry, focusing on Africa. This guide describes the steps involved in opening a computer refurbishment centre in Africa and managing it into productivity. It is intended to distill best practices and provide information on proven methods that could be replicated in refurbishment centres across the continent.

Overview of the computer refurbishment industry
A computer refurbishment company specialises in sourcing second-hand computer equipment, and cleaning, testing, repairing, and assembling it for resale. Some refurbishment companies operate strictly on a commercial basis, using large volumes and economies of scale to derive profit from resale. Others integrate a social purpose into their approach, by using the labour-intensive refurbishment process as a training opportunity through which inexperienced volunteers exchange their time for basic technical training. Refurbishment businesses can be positioned merely as vendors of hardware, or designed to deliver a set of services in concert with computer provision, including pre-sales consultation and needs assessment, and after-sales technical support and training. By providing support and skills training, they can help ensure that clients come to rely upon ICT as a tool that can enhance productivity and communication.

The composition and purpose of refurbishment operations differ widely around the world. Globally, the market tends to be influenced by the need -- or perceived need -- among corporate users for newer, faster computers. When corporations renew their computer equipment, large quantities of used machines enter the resale market. Other buyers, motivated by lower prices and what they see as a better return on investment, purchase those used items. This cycle of technology exchange drives the global trade in used computers. In Africa, additional factors drive the market. Because so many computer users lack experience, organisations currently providing refurbished computer in Africa assume a greater responsibility for ensuring their clients use ICT productively. Therefore, consultation and technical support are as much a part of a refurbishment centre's value proposition as are its affordable computers.

Although the global and African refurbishment markets differ in size and demand, the fundamental economics remain the same: costs fall as production scale rises. African computer refurbishment centres can achieve economies of scale by either centralising production or forming a consortium with others to increase collective buying power. But to reap the benefits of large-scale production, effective management processes are needed, and in Africa that means quality in both production and service.

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