Specifically, GSMA said taxation and duty fees add 10 to 30 per cent to the cost of smartphones depending on the country, across Africa.
It stated this in its ‘The Mobile Economy Sub-Saharan Africa (2023)’ report, stressing that this has been affecting device costs, making it out of reach for most people in the region.
According to the body, this was not the only major contributor to high costs, with manufacturing costs remaining unsustainable for low price points in the region.
GSMA said this continues to remain challenging for manufacturers in SSA to produce devices at a low enough price point to gain market share, particularly in the 5G and 4G markets, where devices are expensive for most regional consumers.
It said, “The challenge for manufacturers in Sub-Saharan Africa is to produce devices at a low enough price point to gain market share, particularly in the 5G and 4G markets, where devices remain prohibitively expensive for most regional consumers.
“Along with the manufacturing costs, other costs, such as fees and taxation directly impact the final selling price. As per GSMA Intelligence research, taxation and duty fees add 10–30 per cent to smartphone costs, depending on the country.”
It added that smartphone affordability continued to be a key barrier to mobile Internet usage in the region and slow penetration digitally
