Mobile phones are currently the preferred medium through which African consumers access the internet. However, the cost of acquisition remains one of the main obstacles to accessing the internet and various value-added services.

The mobile phone is currently an important lever for digital and financial inclusion in Africa. However, the Global Association of Telephone Operators (GSMA) Mobile Connectivity Index still reveals significant disparities in its accessibility, measured as a percentage of average monthly GDP per capita. For the West Africa region in particular, Burkina Faso topped the ranking in 2023, with a mobile phone costing approximately 15.1% of average monthly income. It was followed by Gambia (19.5%) and Niger (21.2%). These figures reflect relatively low prices.

In contrast, the situation was quite different in countries such as Cape Verde (72.2%) and Guinea (64.2%), where acquiring a mobile phone was equivalent to nearly two-thirds of the average monthly income. This reality severely limited the digital equipment of the population and reinforced inequalities in access to information, online education, and digital financial services.

Benin (25.1%), Togo (28.9%) and Mali (29.0%) had moderate accessibility, while larger economies such as Côte d’Ivoire (55.9%) or Ghana (47.1%) had relatively high costs, despite dynamic telecom markets.

These data highlighted a fundamental issue: device affordability as one of the barriers to real digital inclusion in Africa. While connectivity is improving thanks to the expansion of 4G networks and falling data costs, the purchase price of the phone itself continues to hamper digital inclusion, especially among the poorest.

The impact of taxation on prices

The cost of mobile phones in various West African markets depends on several factors, including taxation. According to GSMA data, mobile phone taxes vary considerably from country to country and influence mobile accessibility. While Côte d’Ivoire, Sierra Leone, and Ghana imposed virtually no tax on these devices (0% to 0.1%), others, such as Senegal, applied a tax of 100% of the device’s price.

In countries like Nigeria (72.5% tax) or Gambia (64.08%), the tax burden on phones has compounded a low purchasing power. As a result, millions of people remain excluded from the ongoing digital transformation. This is despite significant progress in 3G/4G coverage.

A political dilemma: tax revenue or digital inclusion?

Taxing terminals represents a significant source of revenue for governments. But in the short term, it penalizes access to basic equipment, compromising policies for digitalization, mobile banking, and e-government.

According to several economists, a reduction in taxes on terminals would not only stimulate individual equipment, but also strengthen the tax base in the long term through the increase in taxed digital services (m-payment, e-commerce, subscriptions, etc.).

As the continent strives for digital sovereignty, the issue of mobile phone accessibility becomes critical. It is urgent that governments align their taxation with their digital ambitions. Without equipment, digital inclusion will remain low, hampering opportunities for the digital economy in Africa.

Source: Agency EcoFin