Africa urged to reform taxes to accelerate Digital Inclusion

KINSHASA: THE Head of regulatory affairs at Airtel Africa and chair of the GSMA Africa Policy Group, Daddy Mukadi, has called on African governments to recognize the telecommunications sector as a key pillar of the economy and implement two targeted tax reforms to significantly accelerate digital inclusion across the continent.

Speaking at the inaugural États Généraux du Secteur des Postes et Télécommunications conference (General assembly of the postal and telecommunications sector) in Kinshasa,—an event aimed at shaping the strategic direction of the country’s digital and communications sector and attended by President Félix Tshisekedi—Mukadi urged both government and private sector stakeholders to rethink the role of telecommunications in national development.

He emphasized that the sector should no longer be viewed as merely supportive, but as a central driver of economic growth.

“The telecommunications sector can no longer be treated as auxiliary. It is now fundamental. All sectors—from security and finance to transport and health—depend on digital technology for growth,” he said.

His remarks come at a critical time for Africa’s digital economy. According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed $220 billion to Africa’s economy in 2024, equivalent to 7.7% of GDP, and is projected to reach $270 billion by 2030.

However, despite mobile network coverage reaching 95% of the population, about 75% of Africans remain unconnected to internet services, largely due to the high cost of digital devices.

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Mukadi proposed reforms to public policy, legal, and regulatory frameworks to expand access to digital services. He stressed the need to treat telecommunications as a foundational economic sector, while encouraging increased investment, broader service coverage, and reduced usage gaps.

He identified key barriers to digital inclusion, including the high cost of smartphones and import duties on telecommunications infrastructure. He proposed temporary tax exemptions—lasting two to three years—on affordable smartphones priced between $40 and $150 to help close the usage gap.

Additionally, he called for the removal of import duties on telecom infrastructure for at least three years to accelerate network expansion.

“These measures will help deliver inclusive and sustainable technology for economic and social development,” he said, adding that they would speed up connectivity, improve service access, and enable more people, businesses, and communities to participate in the digital economy.

Mukadi also stressed the importance of close collaboration between governments and the private sector to create regulatory environments that foster innovation, protect consumers, and encourage long-term investment.