South African authorities are working on several strategic measures to promote inclusive digital transformation and reduce inequalities.
Authorities in South Africa are exploring ways to make smartphones more affordable for the population. The plan was revealed on Feb. 24 by Communications Minister Solly Malatsi during a meeting with the Global System for Mobile Communications Association (GSMA), major telecommunications players, the World Bank, other financial institutions, and business leaders.
On Monday, we’re bringing together industry leaders, financial institutions, and key stakeholders to accelerate access to affordable smart devices for all South Africans. We’re seeking solutions to reduce the cost to communicate through a whole-of-society approach. ?? pic.twitter.com/clWTecZ2tj
— SollyMalatsi (@SollyMalatsi) February 20, 2025
“It is estimated that the digital economy contributes about 19% of South Africa’s GDP, yet millions are excluded – and not because broadband is not available. Smartphones are no longer a luxury; they’ve become a necessity for participation in the modern economy,” Solly Malatsi said.
According to GSMA, the high price of smartphones in South Africa and across Africa is driven by various taxes. The association's report, The Mobile Economy Sub-Saharan Africa 2024, identifies this high cost as one of the biggest barriers to mobile internet adoption. GSMA has suggested that the government consider reducing taxes and duties and explore strategic partnerships to provide affordable devices.
Production and distribution costs also contribute to the high prices. However, eliminating taxes could reduce government revenue. Earlier this month, Rwanda ended its policy of exempting mobile phones and tech equipment from VAT to broaden its tax base.
Data from DataReportal shows that by early 2024, South Africa had 118.6 million active smartphones, with a penetration rate of 195.4%. The same source revealed that the country had 45.34 million internet users, representing a penetration rate of 74.7%.
Writing by Adoni Conrad Quenum; Editing by Feriol Bewa; Translation from French by Firmine AIZAN
From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...
• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...
Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...
Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...
Even though it remains the smallest "crypto-economy" in the world, sub-Saharan Africa shows that vir...
Trade deficit down to $758.9 mln in Q2 2025 from $867.3 mln a year earlier. Exports dropped 35.6%, while imports declined 20.5%...
Orion Minerals signs non-binding funding deal with Glencore for Prieska project. Financing of $200–250 mln planned in two stages, tied to 10-year...
Brice Morlot moves from CFO to head of operations, replacing Lin Espey. Thomas Young shifts from strategy to CFO as company targets 90,000 bpd by...
EBRD, EU, GCF, and Canada plan €65 mln ($77 mln) green loan for Crédit du Maroc. Funds to support clean energy, water treatment, and sustainable...
Surprisingly, only one African song made it onto Rolling Stone's list of the 500 Greatest Songs of All Time. The track is "Essence," a collaboration...
The Umhlanga Festival, also known as the “Reed Dance,” is one of the most iconic cultural events in the Kingdom of Eswatini in Southern Africa. Every...