Tax Reforms Vital For Africa’s Digital Inclusion – GSMA Chair

The chairperson of the GSMA Africa Policy Group, Mr Daddy Mukadi, has urged African governments to implement urgent tax reforms to accelerate digital inclusion and unlock the continent’s digital economy.

Mukadi, who is also the chief regulatory officer at Airtel Africa, said this in a statement on Wednesday.

Mukadi emphasised the need to reposition telecommunications as a core driver of economic growth rather than a support sector.

He said the telecoms sector had become central to the functioning of key industries including finance, security, healthcare and transportation, stressing that digital technology now underpinned national development.

Mukadi noted that telecommunications should not be treated as a sector-specific concern, but as a continent-wide development imperative requiring coordinated policy action across governments.

Citing data from the GSMA Mobile Economy Africa 2025 report, he noted that the mobile sector contributed 220 billion dollars to Africa’s economy in 2024, representing 7.7 per cent of GDP, with projections to reach 270 billion dollars by 2030.

In spite of 95 per cent population coverage by mobile networks, he said about 75 per cent of Africans remained offline, largely due to the high cost of internet-enabled devices, which he described as the continent’s biggest connectivity challenge.

Mukadi identified smartphone affordability and import duties on telecom infrastructure as major barriers to digital access, calling for targeted fiscal interventions to address the challenges.

He proposed a two to three-year tax exemption on entry-level smartphones priced between 40 dollars and 150 dollars, as well as the removal of import duties on telecommunications equipment for at least three years to support network expansion.

According to him, such measures will lower the cost of access, boost connectivity, and accelerate the ability of citizens, businesses and communities to participate in the digital economy.

Mukadi also stressed that telecommunications infrastructure must be seen as a foundational pillar for economic transformation, with stronger collaboration between governments and private sector players.

He noted that this would create an enabling regulatory environment that supported innovation, protected consumers and encouraged long-term investment.

He added that accelerating digital inclusion would be critical to driving inclusive economic growth and social development across Africa, noting that closing the usage gap remained urgent, if the continent was to fully benefit from its growing digital economy.

The GSMA is a global organisation unifying the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change.

The GSMA was formed to ease cooperation, uphold standards and support interoperability between those using Global System for Mobile (GSM) technology.

Its role has grown to include unifying the entire connectivity ecosystem, driving sustainability initiatives and fostering innovation for a better world.