Skyrocketing Smartphone Prices in Africa: Taxes and Duties Squeeze Pocketbooks, Block Internet Access for Many
A recent report from the Global System for Mobile Communications Association (GSMA) has uncovered a major hurdle in Africa’s mobile landscape – high smartphone prices. The culprit? Taxes and duties, adding 10 to 30 percent to the cost and putting these devices out of reach for a significant portion of the population.
The report, titled ‘The Mobile Economy Sub-Saharan Africa (2023),’ highlights the struggle manufacturers face in producing affordable devices, especially in the 5G and 4G markets. GSMA emphasizes that alongside manufacturing costs, fees and taxation directly impact the final selling price, making smartphones even less affordable.
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Smartphone affordability is not just a financial challenge; it’s a roadblock to internet access in the region. The report indicates that the cost factor remains a key barrier, hindering the widespread use of mobile internet in Sub-Saharan Africa.
The telecommunications industry faces a pressing issue – high smartphone prices impede digital inclusion. Bridging the gap requires a concerted effort to address taxation and duty-related obstacles, ensuring that the benefits of digital connectivity reach every corner of Africa.
Source Link: Telcos Blame Taxation & Duty for High Smartphone Prices
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