A co-ordinated effort between the GSM Association (GSMA), six African operators and original equipment manufacturers (OEMs) will pilot $40 (R654) entry-level 4G smartphones in six African nations this year.
This, as 710 million of Africa’s population live close to a 4G broadband signal, but have never gone online, with a further 68% not owning a device.
On the continent, entry-level smartphones cost 26% of the average person’s income. For the poorest 40%, the cost jumps to 64% of their income, and for the next 20%, the cost reaches 87%, data from the GSMA has shown.
To address the cost-prohibitive hurdles, the industry body has been a strong advocate of bringing down the cost of devices. It believes that affordable 4G smartphones at scale could bring tens of millions of people online, unlocking access to education, healthcare, financial services, e-commerce and artificial intelligence (AI)-powered tools.
Angela Wamola, head of GSMA Africa, told ITWeb yesterday that the pilots will launch in six countries: DRC, Ethiopia, Nigeria, Uganda, Tanzania and Rwanda.
She added that the pilots build on the minimum specifications for low-cost 4G devices unveiled at MWC Kigali in 2025 and represent a step forward in turning industry alignment into tangible, on-the-ground impact.
The specifications focus on screen size, battery life and storage for a meaningful device that creates utility, particularly in the age of AI, Wamola added.
“Affordability and access of the device is critical for us to resolve. At the same time, getting a device is also about a willingness to purchase, which is about utility. Creating utility relevant to people’s lives, be it in manufacturing, agriculture, information, health and education, etc. It’s about bringing that content and government services online.
“The cherry on top is about local languages. People want to consume relevant content, but it must be in their local language.”
“As the devices land in the hands of the people, the languages will be readily available. Our small, medium-sized entrepreneurs, developers, innovators can begin to create content and products for our population. This is the magic that needs to happen to close the usage gap in the shortest time possible.”
The announcement, made in Barcelona, moves a step further from MWC Kigali by solidifying the vendors and operators that responded to the minimum specifications for the $40 device call, according to Wamola.
The marketplace now consists of private sector operators, as well as original equipment manufacturers that are engaging the six countries where the pilots will take place, she stated.
“At the same time, the GSMA is working with the governments of those nations to understand what fiscal policy incentives can be placed for these $40 entry-level devices, so that they land at the hands of the customer at the same price point.”
Wamola also indicated the coalition is taking a page out of the South African government’s book. It removed the 9% ad valorem tax, commonly referred to as luxury tax, on smartphones within the below-R2 500 price range.
Ad valorem duties are taxes levied on commodities as a certain percentage of their value. For smartphones, the duties are charged at a flat rate of 9%, classifying them as luxury goods.
In May, National Treasury confirmed the luxury tax on entry-level smartphones had been removed.
The GSMA saw how the market responded to adopting those devices when the government of South Africa removed the 9% luxury tax, she stated. “For us, it’s about replicating those lessons across Africa, so that governments can also adopt those.”
Vivek Badrinath, director-general of the GSMA, added: “Affordable smartphones are the gateway to digital and financial inclusion, economic opportunity and innovation; 3.1 billion people have mobile coverage but are not connected to the mobile internet.
“Together with the G6 group of leading African operators, we are sending a clear demand signal to bring low-cost 4G devices to market. In a global context of rising memory costs, governments have an important role in bridging the usage gap. Removing taxes and import duties on entry-level 4G smartphones will be critical to achieving scale.”
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