Taxes Push Smart Phone Prices up by 30 percent in Africa – Report

Taxes and Duties contribute to 10 to 30 percent increase in smartphone costs, varying by country across Africa, the Global System for Mobile Telecommunication Association (GSMA) has said.

The Association said this hinders access to smart devices for many people in the region.

In its ‘The Mobile Economy Sub-Saharan Africa (2023)’ report, GSMA pointed out that high manufacturing costs, especially in the 5G and 4G markets, pose challenges for manufacturers in Sub-Saharan Africa  to produce affordable devices, limiting market share.

The report emphasised that smartphone affordability remains a significant barrier to mobile internet usage in the region, with approximately 60 percent of Africa’s population lacking mobile internet access despite coverage.

To address these challenges, the report highlighted collaborative efforts between operators and manufacturers that would lead to a reduction in the average selling price of smartphones in recent years.

The influx of devices priced under $100, particularly from Chinese brands like Tecno, Itel, and Infinix, has played a crucial role in making smartphones more accessible, the report noted.

Additionally, telecom operators are increasingly partnering with manufacturers to manage costs and offer financing plans to customers, contributing to the ongoing efforts to enhance digital penetration.

GSMA/Punch/Hauwa Abu