Cheaper Smartphones Key to Reducing Africa’s Digital Divide, Says GSMA

According to African Business, the GSMA—an influential global organization for mobile communications—has highlighted that approximately 85% of Sub-Saharan Africa’s population lives within coverage of 3G or 4G networks. Yet, only about 25% of people in the region are online, emphasizing a significant digital divide fueled by unaffordable smartphones, high data costs, and low digital literacy. This gap poses long-term risks for millions of Africans as the world advances with next-generation technologies such as artificial intelligence (AI), 5G, and satellite connectivity.

How Cheaper Smartphones Are Central to Digital Inclusion

Angela Wamola, GSMA’s head of Africa, emphasized during the discussion that affordable smartphones are a foundational requirement for addressing the continent’s digital lag. Millions still rely on basic feature phones, while even entry-level smartphones remain prohibitively expensive for a large portion of the population. Research by GSMA revealed that, on average, buying a smartphone costs 26% of monthly GDP per capita in Sub-Saharan Africa; for the bottom 20%, the price exceeds 80% of monthly income.

Innovative solutions, such as mobile money financing and ‘buy now, pay later’ models, aim to reduce this barrier. Countries like South Africa have led the way by eliminating taxes on budget devices priced below $150, leading to a remarkable 40% uptick in smartphone purchases. Yet, scaling these models continent-wide remains a challenge.

AI and Local Digital Content: Unlocking Africa’s Potential

Beyond affordability, integrating Africa’s linguistic and cultural diversity into digital ecosystems is essential for fostering online engagement. GSMA sees AI as a game-changing tool for adapting global digital platforms to the African market. Through partnerships with leading mobile operators like MTN, Orange, and Vodacom, GSMA promotes AI applications in African languages, enabling voice-to-voice translation tools and reducing digital literacy barriers.

Investment in data infrastructure is another urgent concern. Currently, Africa accounts for less than 2% of global data center capacity and under 1% of worldwide AI infrastructure. Addressing this disparity can significantly position Africa to capitalize on AI-driven opportunities in agriculture, education, and commerce.

Policy Reforms and Energy Costs: Industry Impacts

Energy costs, which constitute 30%-40% of network operating expenditures in Africa, further compound affordability issues. GSMA advocates for African governments to adopt green energy policies, leveraging the continent’s abundant solar, wind, and hydro resources. Such renewable energy initiatives could lower the cost of connectivity for end users.

Additionally, GSMA highlighted the risks posed by excessive taxation in the digital economy. Many African governments have introduced levies on online transactions and digital services, stifling growth in sectors that could otherwise boost GDP and job creation. Instead, GSMA calls for policies that incentivize investment in digital infrastructure and mobile networks.

The Future: Closing Africa’s Digital Gap

GSMA has set an ambitious goal to close Africa’s internet usage gap by 2033. This involves advancing affordable technologies, strengthening energy policies, and fostering inclusive digital ecosystems. Special attention is being directed toward underserved demographics, such as women and rural communities, where barriers like cost, literacy, and access are the most pronounced.

Efforts to bring connectivity to remote regions could also involve satellite-based solutions, while the GSMA Digital Africa Index, launched in 2024, offers African authorities a comprehensive framework to track connectivity progress and prioritize investments in digital transformation.

Why This Matters

The telecom industry stands at a critical juncture in Africa. Companies like Airtel, MTN, and Orange are poised to benefit from advancements in infrastructure and policy reforms, while the expansion of AI-driven services opens doors for new revenue streams, especially in mobile-first markets. As affordability improves, competitors in the affordable device market, such as Xiaomi and Transsion, could seize market share from traditional brands in the region.

For governments and private players alike, the stakes are high: digitalization could unlock unmatched productivity gains across agriculture, health, education, and even public finance, where innovations like Kenya’s E-Citizen platform have already shown promise.

What do you think? Can Africa overcome its longstanding barriers to digital inclusion? Share your thoughts below!