South Africa’s choice to scrap the 9% advert valorem excise responsibility on entry-level smartphones has been singled out by the GSMA as one of many clearest examples on the continent of how tax reform can deliver folks on-line.
The plaudits for the choice, which was championed by communications minister Solly Malatsi, are available a brand new report from the GSMA, the worldwide cell telecommunications trade affiliation, that argues that Africa’s largest digital problem is not community protection however affordability.
In its Cellular Economic system Africa 2026 report, the GSMA mentioned cell applied sciences and providers contributed US$240-billion to the African financial system in 2025 – 7.8% of GDP – and supported about 13 million jobs, with the contribution forecast to succeed in $290-billion by 2030. Nevertheless it warned that roughly 63% of Africans now stay inside attain of a cell broadband sign with out utilizing cell web, towards a protection hole of simply 9%.
Affordability is the one largest barrier, the GSMA mentioned, with the price of an entry-level handset in sub-Saharan Africa averaging 24% of month-to-month earnings – and as a lot as 80% for the poorest customers.
South Africa is the report’s headline coverage case. Entry-level smartphones priced under R2 500 had been topic to a 9% advert valorem excise responsibility underneath the customs schedule, a classification that successfully handled primary telephones as luxurious items. Nationwide treasury eliminated the responsibility solely with impact from 1 April 2025.
The GSMA mentioned the market response was rapid: a consumer-led rebound in entry-level smartphone gross sales, a parallel decline in function cellphone gross sales as customers upgraded, and a surge in 4G and 5G adoption. The nation’s rating on the GSMA’s Digital Nations Rating Index rose from 63 to 65 and its Digital Coverage and Regulatory Index rating from 77 to 80 – already the very best readings on the continent.
Template
The GSMA’s Handset Affordability Coalition is now utilizing the South African reform because the template in its name for different African governments to take away taxes on units priced under $100.
South Africa options repeatedly elsewhere within the report. MTN’s MoMo (cell cash) unit has launched Handset Lease to Personal, letting pay as you go prospects purchase 4G and 5G smartphones from as little as R10/day with no credit score verify, utilizing an AI mannequin that assesses affordability from cell cash utilization historical past.
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The nation can be furthest forward on community APIs, with native banks and fintechs already utilizing GSMA Open Gateway Sim Swap and quantity verification instruments to chop transaction fraud, and on 5G, which is forecast to succeed in 42% of connections by 2030 towards an African common of 21%.
Operators throughout Africa are projected to take a position $76-billion in community capital expenditure between 2025 and 2030, the report mentioned. – © 2026 NewsCentral Media
