Burundian mobile phones: CKD assembly repair and recycling Note: This project has been cancelled, because of the difficult situation in Burundi.The market for mobile phones in Africa is booming. As penetration rates in Burundi (17%) and Rwanda (30%) are still far below the continent's average of 65%, project partners Sino Winner (H.K.) Ltd and Sopeco SA propose to establish Burundi's very first mobile phone assembly plant in Burundi, in order to serve the local and regional market.The applicant, Sino Winner (H.K.) Ltd from China owns an assembly plant in Shenzhen where it develops and assembles its own brand of mobile phones, called Q7. The company sells its products abroad, mainly in African countries. As import taxes on finished products are higher than import taxes on individual components, Sino Winner (H.K.) Ltd sees a business opportunity in establishing a Complete Knock Down (CKD) assembly plant in Burundi, in order to serve the East African market at a competitive price.Local partner Sopeco SA is one of Burundi's five selling agents of SIM-cards, mobile phones and airtime for mobile network operators. As such, the company has a vast network of distributing agents, shops and street vendors throughout the country. Adding its own brand of mobile phones to the portfolio completes the range of products on offer through this network.The partners will establish a new joint venture in Bujumbura, which will assemble a range of different mobile phones, targeting the lower and middle segment of the market. Next to the assembly part, a service and repair unit will be established as well as a recycling/mobile phone collection point for old mobile phones.Corporate Social Responsibility (CSR)The partners will establish a collection system for old phones, in which they pay 1 euro for every old phone handed in. In the repair shop, these phones will be dismantled. Components that are still in good condition can be used for other phones. Yet, broken components and parts will be collected and shipped to Hong Kong for professional recycling. On a yearly basis, only 500 kg of electronic waste is expected to be produced, so the environmental impact of the project is very limited. Nevertheless, an environmental impact assessment will be conducted.In order to guarantee a certain level of quality, the factory will be ISO 9001 certified.On social aspects, the partners will develop and implement a HRM policy, provide health care, free of charge, to all employees, their spouses and children, pay at least double the local minimum wages and will establish a Company Council to let staff voice their ideas on the way the company is operating and managed.Impact•	Employment and working conditionsSopeco SA in Burundi has a good reputation as employer. As such, they strive to set the same standards for the employees of this new project.•	Innovation / Transfer of knowledgeThere are no other companies assembling mobile phones in Burundi. All phones that are on the market have been imported as finished product. The project will also offer professional repair services for mobile phones (both their own brands and basic models of other brands). This is new to Burundi too.As not all phones can be repaired, the partners will also collect old phones and send them to Hong Kong to be recycled. This kind of service is also not on offer in Burundi yet.Last of all, the plant will be ISO 9000 certified.•	Chain effectsAll components will be sourced from China. The only local suppliers involved will be the marketing and advertisement service providers and a company for legal and professional services.The company will sell its mobile phones to mobile network operators, wholesalers and retailers. These customers will benefit from the lower price that will be charged in comparison to other phones with similar specification. Furthermore, this will be the first brand offering operating systems in Kirundi (local language). Last of all, the fact that the company will offer professional repair and recycle services allows these customers to provide more service to the end consumer.•	Impact on the sectorAs this company is the first electronics assembly factory in Burundi, the project may set an example for other entrepreneurs to follow (e.g. assembly of computers, TVs, DVD players etc).•	EnvironmentBy offering repair services, the life cycle of mobile phones will be extended. Furthermore, the recycling service will take care of proper waste disposal.The assembly factory itself is hardly expected to produce any waste. No waste water, fumes or other kinds of pollution (other than the usual generator) will be produced in this process.•	Position of womenThirty out of 53 employees will be female (4 out of 8 on medium-/high-level, and 26 out of 45 on basic-level). To establish a mobile phone assembly plant, including a repair and recycling service, with the goal of assembling, servicing phones and recycling phones, servicing the Burundian and Rwandan market.