The taxation of the telecommunications sector is sparking intense debate across Africa. Policymakers face difficult decisions, caught between governments' fiscal needs and the urgent drive for digital inclusion. Their challenge is to avoid undermining the continent's digital transformation, a global shift expected to deliver significant financial benefits.

The mobile telecommunications sector plays a central role in connecting the population and driving the Democratic Republic of Congo's (DRC) digital economy. However, this strategic industry faces what the GSMA, the global association of mobile operators, calls a "disproportionately heavy tax burden."

In its June 2025 country report, "Mobile Sector Taxation: Comparative Fiscal Burden in DRC Digital Infrastructure Policy Brief," the GSMA reveals that the sector's effective average tax rate (EATR) on pre-tax profits reaches a staggering 91%. This compares to 71% in the dominant mining sector and just 34% in retail finance. The disparity stems from a tax system largely based on gross revenue rather than net profits.

According to the GSMA, only 8% of the telecom sector's tax load is based on actual profits. In contrast, profit-based taxes account for 35% of the mining sector's burden and 54% in retail finance. The retail finance sector also avoids significant sector-specific levies, relying mostly on corporate income tax and labor-related contributions.

Operational Strain and Digital Divide

The GSMA warns that this tax structure limits operators' capacity to invest in network expansion and modernization, particularly in rural and underserved areas. Ambitious infrastructure projects, such as 4G coverage and upcoming 5G deployment, become riskier and less viable. Applying excise duties on mobile services also drives up consumer costs and restricts access to digital tools. This undermines efforts to expand mobile internet adoption and digital transformation in vital sectors like education, healthcare, agriculture, and commerce.

The GSMA has previously flagged these concerns. In a 2023 report, it cited World Bank estimates showing that eliminating sector-specific taxes in the DRC could increase rural 3G and 4G coverage by over three percentage points, reaching approximately 1.5 million more people. Mobile and mobile internet adoption could also grow by 7.4 and 6.4 percentage points, respectively.

Structural Inequities and Policy Debate

The GSMA argues that telecommunications deserves tax treatment more aligned with sectors like mining and finance. These sectors benefit from similar capital-intensive models and use limited public resources, such as radio spectrum, while enjoying more favorable tax regimes.

However, the call for tax relief comes at a politically sensitive time. The Congolese government views the telecom sector as undertaxed relative to its economic potential and has actively considered tapping it for increased fiscal revenue. Facing growing public expenditure needs, from infrastructure to social services and national security, authorities are seeking to broaden the tax base. Mobile telecoms are seen as a prime candidate.

Amid this context, some officials have questioned the true fiscal contributions of major telecom firms, many of which are multinational corporations. The GSMA's report, while framed as a policy recommendation, will likely be viewed by some as lobbying in a high-stakes fiscal debate. Whether its findings prompt reform or fuel skepticism remains to be seen.

Written in French by Muriel Edjo,

Translated and adapted into English by Mouka Mezonlin