• Ugandan telecoms urge removal of duties on entry-level smartphones

• Operators say high taxes limit affordability, boost smuggling

• Low smartphone access hinders internet adoption and digital services

Ugandan telecommunications operators are calling on Parliament to abolish import duties on entry-level smartphones, arguing this would make devices more affordable and boost the uptake of digital services.

Dennis Kakonge, general manager of corporate services at MTN Uganda, made the appeal to lawmakers during a parliamentary session on Wednesday, April 15. He led a delegation of telecom operators who were also pushing for lower taxes on mobile money withdrawals.

Kakonge said high taxes make smartphones unaffordable for many Ugandans and encourage smuggling. He added that high device costs restrict access to digital services, limiting citizens’ ability to go online.

Uganda currently imposes about 10% in customs duties and 18% in value-added tax on mobile phones. GSMA estimates the total tax burden at around 30%, compared with an African average of 33%.

The GSMA also estimates the median price of an entry-level smartphone in Sub-Saharan Africa at $39 in 2024, equivalent to 26% of average income. The share rises to 64% for the poorest 40% and 87% for the poorest 20%. It is 32% for women and 23% for men.

Smartphone affordability remains a key barrier to mobile internet adoption in Africa. World Bank data shows that 27% of people aged 15 and over owned a smartphone in 2024. The ITU estimates internet penetration at about 9%, while the GSMA says 30 million people were not using the internet.

Isaac K. Kassouwi