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The Global System for Mobile Communications Association (GSMA) has called on African governments to reduce taxes on entry-level smartphones, warning that high device costs are preventing nearly 961 million people across the continent from accessing mobile broadband services despite living in areas already covered by network infrastructure. The appeal comes as policymakers seek to accelerate digital inclusion and prepare African economies for wider adoption of artificial intelligence (AI).
The recommendation was made during the Digital Africa Summit Workshop in Abuja, held as part of activities at the ongoing African Telecommunications Union (ATU) Conference of Plenipotentiaries, where industry leaders, regulators and policymakers discussed strategies for expanding digital connectivity across the continent.
Affordability Remains the Biggest Barrier
Speaking at the event, Caroline Mbugua, GSMA’s Senior Director for Public Policy, Africa, said the continent’s greatest digital challenge is no longer network coverage but affordability.
According to her, millions of Africans already have access to mobile broadband infrastructure but remain offline because they cannot afford smartphones or related digital services. She warned that if the usage gap persists, a significant portion of the population could be excluded from the opportunities created by AI and other emerging digital technologies.
Mbugua urged governments to implement fiscal reforms, including reducing or eliminating taxes on entry-level smartphones, arguing that lower device prices would accelerate smartphone adoption, strengthen digital inclusion and unlock wider economic opportunities.
South Africa Cited as a Success Story
To illustrate the impact of policy reforms, Mbugua pointed to South Africa, where the removal of a 9 percent luxury goods tax on entry-level smartphones contributed to increased smartphone adoption and reduced dependence on feature phones.
She noted that consumer demand for smartphones already exists, stressing that affordability not interest is the principal obstacle preventing millions from connecting to the digital economy.
Connectivity Challenges Persist in Rural Areas
While affordability dominates the discussion, GSMA also highlighted the remaining infrastructure gap across the continent.
According to the association, about nine percent of Africa’s population still lacks access to mobile broadband coverage, largely because extending telecommunications infrastructure to remote and sparsely populated communities is significantly more expensive than serving urban centres.
Research cited by GSMA indicates that deploying mobile infrastructure in rural areas can cost two to five times more than in cities while generating up to ten times less revenue, making such investments commercially challenging for operators.
GSMA Calls for Technology-Neutral Regulation
Beyond tax reforms, GSMA advocated technology-neutral regulatory frameworks that would allow operators to deploy the most suitable connectivity solutions including satellite technology to reach underserved communities.
The association also called for regulatory parity, maintaining that companies offering similar communications services should operate under the same regulatory obligations to promote fair competition, encourage innovation and deliver more affordable services to consumers.
Digital Africa Index to Guide Policymakers
During the workshop, GSMA unveiled its Digital Africa Index, a new data-driven assessment tool designed to help governments and regulators measure the maturity of their digital ecosystems and identify policy reforms needed to improve connectivity, investment and digital transformation.
Mbugua noted that while Nigeria performs strongly across several indicators, there is still room for improvement through evidence-based policymaking and continued investment in digital infrastructure.
She also announced that GSMA’s forthcoming AI Atlas initiative will support the integration of more African languages into large language models. Nigeria is among the participating countries, with four indigenous languages already incorporated into the project to help make AI technologies more accessible across the continent.
Universal Service Funds Under Review
Also speaking at the event, Michaela Angonius, GSMA’s Head of Policy and Regulation, urged African governments to modernise telecommunications licensing by replacing technology-specific licences with technology-neutral authorisation systems capable of supporting emerging technologies.
She further called for a review of Universal Service Funds (USFs), arguing that significant portions of the funds remain unused despite operators continuing to contribute levies. According to her, these charges ultimately increase telecommunications costs for consumers without delivering the intended expansion of connectivity.
Mobile Economy’s Growing Contribution
Earlier, John Omo, Secretary-General of the African Telecommunications Union, underscored the importance of evidence-based policymaking in driving Africa’s digital transformation.
Citing the 2026 GSMA Mobile Economy Africa Report, he said mobile technologies and services contributed approximately $240 billion to Africa’s economy in 2025, supported 13 million jobs, and generated $45 billion in public revenue. However, he stressed that expanding network coverage alone will not be enough, noting that affordability, digital literacy, consumer trust and access to relevant digital services will determine whether connectivity translates into meaningful economic and social development.
