ATU, GSMA Urge African Governments to Slash Smartphone Taxes to Boost Digital Inclusion

The African Telecommunications Union (ATU) and the Global System for Mobiles Association (GSMA) have called on African governments to remove taxes on entry-level smartphones to accelerate digital inclusion and bridge the continent’s widening digital divide.

The appeal was made on Wednesday at the Digital Africa Summit Workshop in Abuja, jointly organized by the two organizations.

The workshop brought together regulators, policymakers and industry stakeholders to examine strategies for accelerating Africa’s digital transformation through policy and regulatory reforms.

The organizations argued that eliminating taxes and levies on affordable smartphones would improve access to digital services, expand internet connectivity and unlock Africa’s artificial intelligence (AI) potential.

ATU Secretary-General, John Omo, said the latest GSMA Mobile Economy Africa Report highlighted the growing impact of telecommunications on the continent’s economy.

According to him, mobile technologies and services contributed $240 billion to Africa’s economy, supported about 13 million jobs, and generated $45 billion in public revenue.

He said the figures reflected the remarkable growth of Africa’s mobile sector over the past 25 years but stressed that expanding network coverage alone was no longer enough.

“We need to acknowledge the progress the industry has made, but coverage cannot be the only measure of success.

“What matters is whether people can afford digital services, possess the skills to use them and trust the systems that provide them,” Omo said.

He added that the newly developed Digital Africa Index would provide policymakers with evidence-based insights to assess digital progress across the continent and guide future reforms.

Omo urged governments to use the data to strengthen national digital policies while deepening collaboration among regulators to address Africa’s connectivity challenges.

GSMA Africa’s Senior Director of Public Policy and Communications, Caroline Mbugwa, warned that affordability remains one of the biggest barriers to digital adoption on the continent.

She said although about 961 million Africans are covered by mobile broadband networks, many cannot afford to use the services, creating a significant usage gap.

“If this challenge is not addressed, millions of Africans risk being left behind in AI adoption and the opportunities created by digital transformation,” she said.

Mbugwa cited South Africa’s decision to remove a nine per cent luxury tax on entry-level smartphones as an example of how tax reforms can accelerate smartphone adoption.

She also noted that extending broadband infrastructure to rural and remote communities costs between two and five times more than deploying networks in urban areas while generating much lower returns.

To improve connectivity, she called for technology-neutral regulations that would allow operators to deploy the most suitable technologies, including satellite services, while ensuring all providers offering similar communication services operate under the same regulatory framework.

“The Digital Africa Index provides regulators with practical evidence on where reforms are needed. Policy decisions must be data-driven if Africa is to achieve meaningful digital transformation,” she said.

Mbugwa also announced that GSMA would soon launch its AI Atlas initiative, designed to integrate African languages into large language models to improve AI accessibility and digital inclusion.

She disclosed that Nigeria is among the participating countries, with four Nigerian languages already incorporated into the project.

Earlier, GSMA’s Head of Policy and Regulation, Michaela Angonius, called for the modernization of telecommunications licensing regimes across Africa.

She said many existing licensing frameworks remain technology-specific and are no longer suitable for emerging technologies such as satellite communications.

Angonius advocated technology-neutral licensing systems that would accommodate all communication service providers under a common regulatory framework.

She also urged governments to ensure Universal Service Funds are effectively used to expand connectivity in underserved rural communities, rather than remaining idle while operators and consumers bear increasing costs.

According to her, regulators should prioritize investment-friendly policies over rigid quality-of-service regulations, noting that countries with the strongest network performance typically encourage infrastructure investment rather than impose excessive regulatory burdens.

The Digital Africa Summit focused on developing strategies to expand connectivity, strengthen regulatory frameworks and position Africa to compete in the emerging AI-driven digital economy.