Cut Smartphone Taxes Now, ATU and GSMA Tell African Governments as Digital Divide Widens

African governments have been urged to remove taxes on entry-level smartphones and implement key regulatory reforms to accelerate digital inclusion, expand internet access and prepare the continent for the growing influence of artificial intelligence (AI).

The call was made on Wednesday in Abuja by the African Telecommunications Union (ATU) and the Global System for Mobile Association (GSMA) during the Digital Africa Summit Workshop jointly organised by both organisations.

The summit brought together telecommunications regulators, policymakers and industry stakeholders from across the continent to explore practical strategies for driving Africa’s digital transformation and ensuring broader access to digital services.

Speaking at the event, ATU Secretary-General, Mr John Omo, said Africa’s telecommunications sector had become a major contributor to economic growth, citing findings from the latest GSMA Mobile Economy Africa Report.

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

Omo said the figures highlighted the remarkable growth of Africa’s mobile industry over the last 25 years, but stressed that access to network coverage alone should not be considered a measure of success.

“We need to take stock and applaud the work that has been done by the industry. However, coverage alone cannot be the only measure of progress.

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

He noted that millions of Africans remained unable to access digital opportunities because smartphones—the primary gateway to internet services—were still beyond the reach of many low-income users.

To address this challenge, Omo called on governments to review tax policies affecting mobile devices, particularly entry-level smartphones, arguing that lower costs would encourage wider adoption and reduce digital inequality.

He also highlighted the importance of the newly developed Digital Africa Index, describing it as a tool that would provide policymakers and regulators with reliable, evidence-based data to measure digital progress across the continent.

According to him, governments should leverage the findings of the index to identify gaps, strengthen policies and develop targeted interventions that promote digital growth.

Omo further stressed the need for stronger collaboration among regulators, governments and industry players to tackle persistent barriers to digital development.

Also speaking, GSMA Africa’s Senior Director of Public Policy and Communications, Ms Caroline Mbugwa, warned that Africa risked being left behind in the global AI revolution if affordability barriers were not urgently addressed.

She revealed that although about 961 million Africans live within areas covered by mobile broadband networks, many remain unable to use digital services because they cannot afford smartphones, internet subscriptions or related services.

Describing the situation as a significant “usage gap,” Mbugwa said millions of Africans could be excluded from the benefits of AI and digital innovation if the challenge persisted.

“If this challenge remains unresolved, millions of Africans risk being excluded from AI adoption and the opportunities that come with digital transformation,” she said.

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Mbugwa pointed to South Africa as an example of how policy reforms can boost digital inclusion, noting that the country’s decision to remove a nine per cent luxury goods tax on entry-level smartphones significantly accelerated smartphone adoption.

She also highlighted the high cost of extending broadband infrastructure to underserved rural communities, explaining that connectivity projects in remote areas could cost between two and five times more than deployments in urban centres while generating considerably lower revenues.

To address these challenges, she advocated regulatory parity, insisting that all communication service providers offering similar services should be subject to the same regulatory framework.

According to her, technology-neutral regulations would allow operators to deploy the most effective connectivity solutions, including satellite technologies, to reach underserved populations.

“The Digital Africa Index provides regulators with practical evidence on where reforms are needed.

“Policy decisions should 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, a project designed to incorporate African languages into large language models and improve AI accessibility across the continent.

She disclosed that Nigeria was among the participating countries, with four Nigerian languages already integrated into the initiative.

Earlier, GSMA’s Head of Policy and Regulation, Ms Michaela Angonius, called for sweeping reforms to telecommunications licensing systems across Africa, arguing that many existing frameworks were outdated and no longer suitable for emerging technologies.

Angonius said several licensing regimes remained tied to specific technologies, making it difficult to accommodate innovations such as satellite communications and other next-generation digital services.

She recommended the adoption of technology-neutral licensing frameworks that would create a level playing field for all communication service providers.

The GSMA official also urged governments to ensure that Universal Service Funds are effectively utilised to support connectivity projects in rural and underserved communities rather than remaining inactive while operators and consumers continue to bear rising costs.

According to her, regulators should prioritise policies that encourage infrastructure investment instead of relying heavily on rigid quality-of-service regulations.

She noted that countries with some of the strongest telecommunications networks had achieved success by fostering investment-friendly environments that encouraged network expansion and innovation.

Angonius added that while regulatory challenges varied across countries, reforms should be tailored to local realities while promoting investment, competition and digital inclusion.

The Digital Africa Summit focused on practical strategies for accelerating connectivity, strengthening regulatory frameworks and positioning Africa to take advantage of opportunities emerging from the rapidly evolving AI-driven digital economy.