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Across the African continent, over 600 million individuals reside within the reach of 3G or 4G networks yet have never accessed the internet. Angela Wamola, Head of GSMA Africa, attributes this not to network availability or policy failures, but to a fundamental obstacle: the prohibitive cost of smartphones for the average African consumer.
Breaking Down Africa’s Digital Divide: The Cost Factor
Research from the GSMA identifies four primary barriers to digital inclusion in Africa: affordability, digital literacy, content relevance, and trust. Among these, affordability-particularly the price of entry-level smartphones and data plans-emerges as the most significant hurdle.
“Across numerous surveys, the consistent message is clear: the cost of devices is simply beyond reach for many,” Wamola explained in an interview with TechCabal. “In several countries, taxes alone inflate prices by 30 to 40 percent.”
This taxation transforms what should be an affordable smartphone into a luxury commodity. According to the latest GSMA report, the average price of an entry-level smartphone equates to 26% of the median monthly income in Africa, estimated at approximately $800. For the 40% of the population living at the lower income levels, this figure jumps to 64%, and for the poorest 20%, it can consume over 80% of their monthly earnings.
“When purchasing a device demands nearly an entire month’s salary, it ceases to be a choice and becomes a barrier,” Wamola emphasized.
South Africa’s Progressive Tax Reform: A Model for the Continent
In a landmark move in February, South Africa eliminated luxury taxes on smartphones priced under R2,500 (around $130). This policy shift represents a rare alignment of fiscal strategy with the goal of expanding digital access.
GSMA is advocating for other African nations to adopt similar tax relief measures. However, many governments rely heavily on revenue from telecom-related taxes, and countries like Nigeria, facing fiscal deficits, have even contemplated introducing new excise taxes on telecom services.
Wamola acknowledges these fiscal challenges but stresses the long-term benefits of such reforms. “Sound policies act as catalysts,” she said. “Lowering taxes on affordable devices stimulates the digital economy, boosts productivity, and ultimately broadens the tax base.”
To support policymakers, GSMA developed the Digital Africa Index, a comprehensive tool that benchmarks digital adoption, regulatory frameworks, and policy impacts across 55 African countries. This data-driven approach aims to demonstrate that enabling policies foster sustainable digital growth.
“There’s no need to reinvent solutions,” Wamola noted. “Countries can learn from successful strategies implemented by their neighbors.”
The Critical Role of $30-$40 Smartphones in Africa’s Digital Future
Africa’s mobile ecosystem stands at a pivotal crossroads. While the global tech community anticipates the rollout of 6G, a significant portion of Africans continue to rely on basic 2G feature phones. Nearly 70% of mobile users on the continent lack smartphones capable of supporting modern applications in sectors like education, healthcare, finance, and e-commerce.
Despite widespread network coverage, device accessibility remains the bottleneck.
“There are approximately 616 million people within broadband reach who have never connected online,” Wamola highlighted. “This represents a massive untapped potential.”
To address this, GSMA recently unveiled an initiative to produce smartphones priced between $30 and $40. At the Mobile World Congress in Kigali, key operators and manufacturers agreed on baseline specifications to ensure a meaningful digital experience: 4G connectivity, robust battery life, sufficient memory, and compatibility with emerging technologies such as AI-driven translation and voice assistants. Partners include six of Africa’s largest mobile operators: Airtel Africa, Axian Telecom, Ethio Telecom, MTN, Orange, and Vodacom.
The objective extends beyond mere internet access; it aims to integrate millions into the burgeoning AI-driven digital economy. Currently, low-end 3G devices restrict users to basic web browsing, but the new affordable smartphones will enable voice-based interactions that help overcome literacy and language challenges.
“In the AI era, users can speak in Swahili, Yoruba, or Zulu and instantly engage with digital content,” Wamola explained. “However, this requires at least a 4G-enabled device.”
Evaluating the Phase-Out of 3G Networks in Africa
Several African governments are contemplating the retirement of 3G networks to accelerate adoption of newer technologies. For example, Nigeria currently reports only 6.6% 3G usage. However, critics caution that such transitions risk marginalizing the poorest populations who cannot afford 4G smartphones.
Wamola advocates for a balanced approach. “The sunset of 2G and 3G networks is inevitable-it’s a matter of when, not if,” she said. “The critical question is how to ensure consumers are supported throughout this transition.”
She suggests that while 4G should be the target for consumer devices-enabling access to essential apps and fostering the creative economy-legacy technologies like 2G will persist longer in machine-to-machine communications, such as point-of-sale terminals, IoT sensors, and logistics tracking.
“The guiding principle is clear: no one should be left disconnected. Being offline means being left behind,” Wamola concluded.
Can Local Manufacturing Solve Africa’s Smartphone Affordability Challenge?
Efforts to establish local smartphone manufacturing hubs in countries like Rwanda, Egypt, and Nigeria have faced sustainability challenges.
“For manufacturing to be viable, scale is essential,” Wamola explained. “If each country attempts to build its own assembly line independently, many will struggle to maintain sufficient demand.”
She points to regional collaboration and the African Continental Free Trade Area (AfCFTA) as key enablers. By consolidating demand across borders, Africa could achieve economies of scale that stabilize production costs.
Another promising avenue is the circular economy-importing and distributing certified pre-owned smartphones. With rigorous testing, quality assurance, and regulatory oversight, refurbished devices could be offered at significantly reduced prices, rapidly narrowing the digital divide.
“This approach offers a practical, near-term solution to affordability,” Wamola noted.
Looking Ahead: Digital Inclusion Milestones in 2026
Wamola anticipates 2026 as a transformative year for smartphone affordability and digital inclusion across Africa.
“If momentum continues, more governments will emulate South Africa’s tax reforms,” she predicted. “Simultaneously, AI technologies will empower millions to overcome literacy barriers.”
GSMA plans to maintain its advocacy through data-driven insights from the Digital Africa Index and ongoing collaboration with operators and manufacturers to refine affordable smartphone standards.
“Our mission transcends device adoption,” Wamola emphasized. “We aim to unlock a vibrant digital economy where Africans are creators and innovators, not just consumers.”
