Africa has a strange connectivity paradox. Mobile networks now cover 95% of the continent’s population. Yet nearly 75% of Africans remain offline. The signal is there. The people are there. What’s missing, increasingly, is an affordable phone to bridge the two.
That’s the argument Daddy Mukadi, Chief Regulatory Officer of Airtel Africa and Chair of the GSMA Africa Policy Group, made today at the first edition of the États Généraux du Secteur des Postes et Télécommunications in Kinshasa, DRC. The event, convened in the presence of President Félix Tshisekedi, was set up to develop a strategic roadmap for the country’s digital and telecommunications sector.
Mukadi’s pitch was specific. He proposed two tax reforms that he says could meaningfully shift the digital inclusion needle across the continent.
First, a two-to-three-year exemption on import duties and taxes for entry-level smartphones priced between US$40 and US$150. Second, the removal of entry duties on telecommunications equipment for at least three years to support network expansion.
These are not new ideas in the broader conversation. The GSMA and Africa’s largest mobile operators have been pushing for tax breaks on affordable devices since MWC Kigali in October 2025, and the GSMA’s Handset Affordability Coalition is already piloting US$30-$40 smartphones in six African countries. But Mukadi’s framing elevated the discussion from a device affordability issue to a macroeconomic policy argument.
“The telecoms sector can no longer be considered merely as a support sector,” Mukadi said. “It is now a core sector. Both are vital, and every other sector, from security and finance to transport and health, depends on digital technology for growth.”
The numbers behind the ask
According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed US$220 billion to Africa’s economy in 2024. That is equivalent to 7.7% of the continent’s GDP. By 2030, that figure is projected to climb to US$270 billion. The industry also contributed more than US$30 billion in taxes, representing nearly 10% of total tax revenue across the region.
So telecoms is not just a growth sector. It is already a significant source of government revenue. The tension Mukadi highlighted is that governments are taxing the very devices and infrastructure that would grow that tax base further. In some African countries, VAT and import duties inflate the price of an entry-level smartphone by more than 30%. For households where a phone already represents a serious chunk of monthly income, that margin is the difference between getting online and staying offline.
The GSMA identifies device affordability as the single biggest barrier to closing Africa’s “usage gap.” This is distinct from the “coverage gap.” The coverage problem has largely been solved. The usage gap, where people live within range of a mobile signal but do not use the internet, is now the continent’s defining connectivity challenge. About 960 million people in Africa fall into this category.
Why tax holidays could actually work
There is precedent. South Africa removed its 9% luxury tax on smartphones priced under R2,500 (approximately US$140) in April 2025, specifically to accelerate the shift from 2G/3G to 4G. A GSMA case study found that when Kenya scrapped its 16% VAT on handsets back in 2009, device purchases surged by over 200%. Crucially, the long-term result was more tax revenue, not less, because more people came online and started paying for taxable mobile services.
That is the core of the economic argument: short-term tax relief pays for itself by expanding the digital economy. More smartphones in people’s hands means more data consumption, more mobile money transactions, more e-commerce activity. All of which are taxable.
Mukadi also pushed for the telecoms equipment duty exemption because network expansion remains capital-intensive. Operators need to keep building out coverage and capacity, particularly in rural areas. Taxing the equipment that goes into base stations and towers adds cost that ultimately slows rollout.
A familiar but evolving conversation
Mukadi is not a new voice on this topic. As Chair of the GSMA Africa Policy Group, a role he has held while also sitting on the GSMA’s Global Policy Group, he has been part of the industry’s coordinated push for regulatory reform across the continent. Airtel Africa itself operates in 14 countries across sub-Saharan Africa, serving 173.8 million customers.
But the venue matters. The DRC is one of the six countries where the GSMA is piloting its affordable smartphone initiative. Making this case directly to the Congolese government, with the president in attendance, adds a layer of political urgency that conference speeches in Barcelona or Kigali do not always carry.
Mukadi also called for closer collaboration between governments and the private sector to create regulatory environments that encourage innovation while protecting consumers. That is standard industry language. But the specific, time-bound proposals around duty exemptions give the conversation sharper edges.
Whether African finance ministries will agree to forgo short-term revenue for the promise of long-term digital economy growth remains the central question. But the data suggests the trade-off is real. The continent cannot build an AI-ready, 5G-connected future when the majority of its people still cannot afford a basic 4G phone.
