Africa’s Digital Inclusion Game Changer or Fiscal Gamble?
At the recent Mobile World Congress in Kigali, African telecom leaders made a bold pitch: scrap import duties and VAT on smartphones under $100 to fast-track digital access for millions. With taxes and duties often inflating prices by over 30%, even basic devices remain out of reach for many. GSMA Intelligence estimates that ultra-affordable smartphones could connect up to 70 million new users in Sub-Saharan Africa—if paired with expanded network coverage and digital skills.
But here’s the catch: most African governments depend on these taxes to fund essential services. The challenge? Balancing short-term revenue loss with the long-term economic boost from a digitally empowered population. Policymakers are urged to consider targeted, time-bound tax breaks with strict eligibility and anti-abuse measures, while also incentivizing local assembly to create jobs and lower costs.
