The GSM Association (GSMA) has urged African governments to reduce taxes and levies on entry-level smartphones as part of efforts to accelerate digital inclusion and ensure millions of Africans are not excluded from the emerging artificial intelligence (AI) revolution.
The association warned that about 961 million Africans who are currently covered by mobile broadband networks are not using the services due to affordability challenges, particularly the high cost of smartphones.
The call was made at the Digital Africa Summit, organized by GSMA in partnership with the African Telecommußnications Union (ATU), which brought together regulators, policymakers and industry stakeholders to discuss strategies for improving connectivity and driving digital transformation across the continent.
Speaking at the event, Senior Director, Public Policy and Communications, GSMA Africa, Caroline Mbugwa, said affordable smartphones and reliable connectivity were essential for unlocking the benefits of AI across sectors including healthcare, education, transport and commerce.
Mbugwa noted that while mobile broadband coverage has expanded significantly across Africa, a large number of people remain unable to access digital services because they cannot afford smartphones.
She stressed that fiscal reforms, particularly the removal of taxes on entry-level devices, were urgently needed to make smartphones more accessible to low-income users.
According to her, South Africa’s decision to remove a nine per cent luxury goods tax on entry-level smartphones helped accelerate adoption of smart devices and reduce dependence on feature phones.
“We are now entering what we call the era of intelligence, and the era of intelligence requires that we have an already existing robust infrastructure, robust connectivity that can support the growth of artificial intelligence on the continent.
“We have a whole 961 million Africans that are covered by mobile broadband services but are not using the service. This is what we refer to as a usage gap. If this remains unaddressed, it means that this number will be left behind when it comes to the adoption of AI.
“This signals that there is demand for adoption of smart devices. Customers are willing to actually use the service. Affordability is the challenge,” she said.
Also speaking, Head of Global Policy and Regulatory Team at GSMA, Michaela Angonius, said African countries must adopt policy reforms that encourage investment, expand connectivity and reduce barriers to digital access.
Angonius, who oversees global regulatory and policy issues covering areas such as fiscal policy, competition and network deployment, cautioned against adopting a one-size-fits-all approach to reforms across the continent.
She said findings from the Digital Africa Index showed that while some countries, including South Africa, had made significant progress, others still needed deeper regulatory reforms to improve their digital ecosystems.
She identified three major areas requiring attention: modernizing licensing frameworks, improving the use of Universal Service Fund (USF) resources and adopting smarter approaches to quality of service regulation.
According to her, many African countries still operate technology-specific licensing systems, which do not align with the rapid evolution of digital technologies.
Angonius advocated for technology-neutral licensing frameworks that would allow different communication providers, including satellite operators, mobile network operators and internet service providers, to operate under the same regulatory principles.
She explained that the growth of satellite services had exposed weaknesses in existing licensing structures, as regulators often struggle to determine how to classify new technologies.
On Universal Service Funds, Angonius said the existence of unused funds in many countries effectively creates an additional tax burden on telecom operators, which eventually increases costs for consumers.
She warned that such additional costs could worsen the digital divide at a time when Africa is already struggling with smartphone affordability and connectivity challenges.
The GSMA executive also called for a review of quality of service regulations, arguing that countries with the best digital service quality are not necessarily those with the most detailed regulatory requirements.
She said governments should instead focus on policies that encourage investment, expand coverage to underserved communities and improve access for people who remain disconnected.
Angonius further advised finance ministers across Africa to remove levies placed on entry-level smartphones to lower the cost of first-time device ownership.
“Those countries with the best quality of service are not necessarily the countries that have detailed quality of service regulation. Rather, they have focused on how to get the investment right.
“If you have a levy on any handset, firstly, if you can, as a finance minister, remove it. If you can’t, at least remove it from those entry-level handsets that should be affordable for everyday users,” she said.
She added that Nigeria, like other African countries, could benefit from reforms that promote investment, address societal needs and ensure consumers gain long-term value from digital transformation.
Meanwhile, GSMA said it would continue to provide research, data and policy recommendations through initiatives such as the Digital Africa Index and other reports to support evidence-based decision-making by governments and regulators.