By: Natasha Archary
SA’s first smartphone factory, Mara Phones is set to be auctioned after falling into the red. This despite government affording the tech company R100 million tax break and first preference until 2026.
The company launched in 2019 and was pitted as being a hub for employment opportunities in the country.
Global CEO of Mara Phones, Chris Corsi and founder and board member Ashish Thakkar pinned the company’s failure to get off the ground on the Covid-19 pandemic.
“The ambitious plan to launch a facility in South Africa was untenable due to the pandemic and lockdowns that followed 4-months after opening,” the executives said in a statement.
After R1.5 billion was invested to get the facility in Durban set-up and operational, investors are moving ahead with the auction of the factory as well as all its contents.
The locally manufactured Android smartphone brand opened its first mobile experience store in Soweto in November 2020.
SABC news broadcaster Chantél Jantjies was the franchise owner. Jantjies said she had a deal with Mara Phones to open 10 stores without paying any franchise fees or royalty fees.
“They’ve been really supportive of young empowerment and women empowerment, which has been really great,” Jantjies shared with media at the launch of her store.
In 2021, Sylvester Taku was appointed MD of the company and the brand aimed at competitively targeting a spot in the Top 3 smartphones in SA.
The pipeline dream has come crashing down and the company will now either be auctioned in its entirety or by the sale of individual assets and equipment.
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