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Central African Republic Shuts Down Telecel Offices Over Tax Issues

Tuesday, 09 July 2024 20:15
Central African Republic Shuts Down Telecel Offices Over Tax Issues

(Ecofin Agency) - In April 2024, Orange, a competitor of Telecel, was confronted by the government after the company increased transaction fees on its mobile money platform in response to a new 1% tax.

The Ministry of Finance and Budget has closed the offices of mobile operator Telecel Centrafrique, according to local media reports. The telecom company is accused of failing to pay taxes amounting to about 2.7 billion CFA francs ($4.4 million).

Local media report that Telecel has shown no intention of paying the 7% tax on final calls imposed by the government in the 2023 finance law, which came into effect in February 2024. Five months later, the operator's bill stands at 689 million CFA francs. Additionally, unpaid taxes are amounting to about 2 billion CFA francs.

If this situation persists, it could affect the quality and availability of Telecel's services in the Central African Republic. On social media, the company's customers have been complaining about poor service quality for several days. This could lead them to switch to competitors.

Telecel Centrafrique claims to be the "market leader in subscriber numbers and revenue." It competes with Orange, Moov Africa, and the historical operator Socatel in a market of about 1.8 million mobile subscribers (DataReportal).



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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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