JOHANNESBURG -- A local startup company will begin production of smartphones here next quarter, making it the first cellphone manufacturer in Africa.

Onyx Connect plans to build and sell Android phones under its own name and as a contractor for other OEMs, a company spokesperson said.

Andre van der Merwe, OC's sales director, told local media that discussions are underway between the company and other OEMs, including Google and Vodacom Group. The latter is bases in South African and provides mobile telecommunications services to over 55 million customers.

Vodacom reportedly confirmed its open to offering domestically made devices, although it declined to discuss specific vendors.

Onyx says the plunging rand currency allows it to build phones locally for about $30 (about R400). Designs and components are sourced from China, with assembly performed in South Africa.

Africa is the world's second-largest continent by population, with more than 1.03 billion residents.

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