A new coalition of Africa’s largest mobile operators is making a direct appeal to governments across the continent to immediately remove taxes on entry-level smartphones to connect millions of people.
The call to action was made by operators attending the ongoing Mobile World Congress Kigali in Rwanda.
This call is the central focus of a new initiative announced on Tuesday by the GSMA and six leading operators – Airtel, Axian Telecom, Ethio Telecom, MTN, Orange, and Vodacom. The group argues that while mobile internet coverage is expanding, the single largest barrier preventing millions from getting online is the prohibitive cost of a 4G handset, a problem directly worsened by government tax policies.
In some African countries, VAT and import duties can inflate the price of an entry-level smartphone by more than 30%. This places the device, and the access it provides, out of reach for low-income households.
The industry is urging governments to replicate the recent success of South Africa, which introduced tax reforms on entry-level smartphones earlier this year.
Effective April 1, 2025, the South African government scrapped its 9% ad valorem (luxury) tax on all smartphones valued under ZAR 2,500 (approx. $140). The move was specifically designed to make 4G and 5G devices more affordable and accelerate the migration from older 2G and 3G networks.
This model is not without precedent. A GSMA case study on Kenya found that after the government scrapped its 16% VAT on handsets in 2009, device purchases skyrocketed by over 200%. This policy not only spurred digital inclusion but also led to long-term growth in overall tax revenue, as more citizens began using and paying for taxable mobile services like airtime and data.
The coalition argues that these examples provide a clear, proven path for governments to stimulate digital adoption without losing revenue in the long run.
The GSMA’s State of Mobile Internet Connectivity 2025 Report highlights a persistent “usage gap”: more than 3 billion people globally live within mobile broadband coverage but do not use the internet. The top reason cited is the affordability of the handset.
To combat this, the new Handset Affordability Coalition has proposed a baseline set of minimum requirements for a viable, entry-level 4G smartphone. The goal is to send a powerful signal to manufacturers to produce devices that can be sold for as low as $30 to $40.
GSMA Intelligence estimates that a $40 smartphone could bring mobile internet within reach for an additional 20 million people in Sub-Saharan Africa, while a $30 handset could connect up to 50 million.
However, the coalition stressed that this target is impossible to reach in countries where high taxes remain in place.
“Access to a smartphone is not a luxury – it is a lifeline to essential services, income opportunities and participation in the digital economy,” said Vivek Badrinath, Director General of the GSMA. “By uniting around a shared vision for affordable 4G devices, Africa’s leading operators and the GSMA are sending a powerful signal to manufacturers and policymakers.”
This signal is now aimed squarely at finance ministries, emphasizing that digital transformation is being held back by tax policy, not by a lack of network coverage or consumer demand.
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