• Namibia’s regulator proposed tax relief to lower the cost of 4G-compatible smartphones and expand broadband adoption.

• About 35% of Namibia’s population remained offline at the end of 2025, according to DataReportal.

• High device taxes and low affordability continue to limit effective use of existing 4G infrastructure.

In Namibia, the Communications Regulatory Authority of Namibia (CRAN) proposed tax relief and other incentives to support the adoption of 4G-compatible phones. The regulator aims to accelerate nationwide broadband uptake, even as network infrastructure already covers large parts of the country.

CRAN Chief Executive Officer Emilia Nghikembua disclosed the proposal late last week during the rollout of a telecom tower by state-owned operator MTC Namibia in the Kunene region. She spoke after the operator raised concerns over the underuse of its network towers, a situation largely linked to the high cost of 4G-compatible devices in the Namibian market.

?? Advancing Digital Inclusion in Kunene Region.

Yesterday, a significant milestone was marked in Ehomba, Kunene Region, with the launch of connectivity infrastructure implemented through the Communications Regulatory Authority of Namibia’s Universal Service Fund (USF).

This… pic.twitter.com/SqJ3nEXXTp

— CRAN (@CRANamibia) January 31, 2026

MTC Namibia, the country’s leading mobile operator, said infrastructure availability has not yet translated into widespread service adoption. Acting board chair Mercia Geises said the operator operates about 74 towers in the Kunene region, all compatible with 4G technology, but utilization stands at around 50%.

“Even when we put the infrastructure in place, the question remains how to bring our communities to adopt and use that infrastructure,” she said.

These proposals come as Namibia accelerates its technological transition. The government recently announced plans to phase out 2G and 3G networks starting this year in favor of 4G, 5G, and satellite technologies.

As part of this strategy, authorities also plan to eventually ban imports of 2G and 3G phones. Consumers will therefore need to acquire 4G-compatible smartphones or better to maintain access to telecom services, even as such devices remain unaffordable for part of the population.

Taxation Remains a Structural Barrier

According to the GSMA, taxation represents a major obstacle to device affordability. In some countries, value-added tax and import duties raise smartphone prices by more than 30%, directly increasing consumer costs and slowing digital inclusion.

In its Mobile Connectivity Index 2025, the GSMA assigned Namibia a score of 46 out of 100 for device affordability, with 100 representing a fully affordable market.

World Bank data highlight the scale of the challenge. In low- and middle-income countries, the cost of an entry-level smartphone equals about 18% of an adult’s monthly income. For the poorest 40% of households in sub-Saharan Africa, the share rises to 73%.

By affordability standards, a smartphone should cost no more than 15–20% of average monthly income. While the supply of smartphones priced below $100 has improved slightly in recent years, it remains insufficient to meet the needs of lower-income households.

Tax Relief Offers Only Partial Solution

The proposed tax relief remains nonbinding at this stage. Government approval will determine whether the measures move forward, and their real impact on 4G smartphone prices remains uncertain.

In this context, the GSMA urged telecom operators to strengthen partnerships with device manufacturers. The organization recommended cost-reduction strategies and installment payment plans to ease access to 4G- and 5G-compatible devices.

Governments, for their part, should introduce targeted tax exemptions for entry-level phones. Manufacturers should design devices that match user needs while supporting both affordability and willingness to pay, a key condition for sustainable digital adoption.

Beyond device pricing, the GSMA also said 4G adoption depends on digital skills, service affordability and quality, and the relevance of available content.

This article was initially published by Isaac K. Kassouwi

Adapted in English by Ange J.A de BERRY QUENUM