Oberthur Card Systems has staked a claim for a share of South Africa's forthcoming EMV migration with the EUR2.5 million acquisition of local card manufacturer Africard.
Labat subsidiary Africard, which will be renamed Oberthur Card Systems South Africa, will address the South African domestic market and other English speaking African countries.
South Africa is the largest payment market in Africa, with over 20 million banking cards in circulation. The forthcoming migration to EMV is expected to spill over into demand for GSM cards and emerging ID programmes.
Located in Johannesburg with over 15 years in existence, the Visa & MasterCard certified Africard plant has a production capacity of 30 million cards per year and holds over 40% of the banking card South African market.
Oberthur Card Systems says it will make available its smart card technology and related manufacturing and personalisation capabilities.
Rodger Metelerkamp, managing director of Africard, says: "The transfer of smart card technology to Africard was absolutely crucial to leverage the fantastic potential of growth of that company. With its clear understanding and commitment to the African market, Oberthur Card Systems was the best international player to take over Africard."