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Cut smartphone taxes to bridge digital divide, GSMA urges African nations

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The GSMA is urging African governments to reduce taxes on entry-level smartphones to boost digital inclusion.
  • Approximately 961 million Africans covered by mobile broadband networks remain offline, risking exclusion from the AI revolution.
  • The association advocates for fiscal reforms, technology-neutral regulations, and regulatory parity to make smartphones affordable and expand connectivity.

The GSM Association (GSMA) is calling on African governments, including Nigeria, to lower taxes on basic smartphones and implement regulatory reforms to accelerate digital inclusion across the continent. The organization warns that a significant portion of the African population remains offline, potentially missing out on the benefits of the artificial intelligence era.

We are now entering what you call the era of intelligence. 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 and globally

— Caroline MbuguaMbugua's statement on the importance of infrastructure and connectivity for Africa's AI ambitions.

At a recent workshop in Abuja, the GSMA highlighted that around 961 million Africans have access to mobile broadband services but are not actively using them. This "usage gap" poses a risk of leaving these individuals behind as AI technologies become more integrated into daily life. Caroline Mbugua, Senior Director of Public Policy and Communications at GSMA Africa, emphasized that Africa's AI aspirations are contingent on making smartphones affordable and ensuring widespread use of existing broadband infrastructure.

"We are now entering what you call the era of intelligence," Mbugua stated. "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 and globally." She stressed that reducing taxes, particularly on entry-level devices, is a crucial and urgent step. South Africa's experience, where removing a luxury goods tax on basic smartphones boosted adoption, was cited as a successful example.

The reduction of taxes, particularly on entry-level devices, is one that is key and needs to be done as a matter of urgency

— Caroline MbuguaMbugua's call for urgent tax reductions on affordable smartphones.

Mbugua also addressed the challenges of connecting remote communities, noting that infrastructure deployment in rural areas is significantly more expensive and less profitable than in urban centers. To bridge these connectivity gaps, the GSMA advocates for technology-neutral regulations that allow operators to deploy the most suitable technologies, including satellite services. The association also urges governments to adopt "regulatory parity," ensuring that providers offering similar communication services are subject to comparable rules.

Same service, same rules

— Caroline MbuguaMbugua's explanation of 'regulatory parity' for communication service providers.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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