GSMA Urges African Governments to Promote Digital Inclusion
The GSM Association (GSMA) has called on African nations, including Nigeria, to lower taxes on entry-level smartphones and implement regulatory reforms aimed at enhancing digital inclusion across the continent. The organization highlighted a critical issue: approximately 961 million Africans, currently within mobile broadband networks, are still offline, posing a significant risk of exclusion from the rapidly evolving artificial intelligence landscape.
Workshop Focuses on Advancing Africa’s Digital Economy
This appeal was voiced during a workshop hosted by the African Telecommunications Union and GSMA in Abuja, which convened as part of the 7th regular session of the African Telecommunications Union Conference Preparatory Committee. The event brought together regulators, policymakers, and industry leaders to explore strategies for bolstering Africa’s digital economy.
Affordability and Accessibility Key for AI Growth
Caroline Mbugua, GSMA’s Senior Director of Public Policy and Communications for Africa, argued that Africa’s ambitions in artificial intelligence hinge on making smartphones affordable and expanding access to existing broadband infrastructure. She noted, “We are now entering what is called the age of intelligence. This era necessitates a strong infrastructure and connectivity to support AI growth at both continental and global levels.”
The Digital Divide and Urgent Action Needed
Despite significant advancements in mobile broadband coverage across Africa, Mbugua emphasized that the penetration rate remains alarmingly low. “We have identified a usage gap where 961 million eligible individuals are not utilizing mobile broadband services. This gap must be addressed promptly to prevent these individuals from falling further behind as AI technologies proliferate,” she stated.
Regulatory Reforms and Policy Recommendations
Mbugua urged governments to prioritize tax relief measures to make smartphones more affordable. Citing South Africa’s recent removal of a 9% luxury tax on entry-level devices as a model, she stressed that such reforms are crucial for increasing smartphone adoption. Further, she noted the significant cost disparities in expanding connectivity to rural communities, where infrastructure expenses can be two to five times higher than in urban areas, while revenues may be up to ten times lower.
Launch of the Digital Africa Index
During the workshop, Mbugua also introduced the Digital Africa Index, a comprehensive tool designed to assess countries’ digital development and regulatory environments. She highlighted its potential as a reference point for policymakers, emphasizing that while Nigeria performs well on certain indicators, there remains ample opportunity for further enhancement.
Modernizing Telecommunications Licensing Frameworks
Michaela Angonius, head of policy and regulation at GSMA, called for the modernization of telecommunications licensing frameworks across Africa, advocating for technology-neutral regulations over outdated technology-specific licenses. This change, she argued, would enable regulators to more effectively keep pace with emerging technologies. Angonius also highlighted the need for better utilization of the Universal Service Fund, warning that inactive funds can inadvertently lead to increased costs for operators and ultimately, consumers.
Progress and Challenges in Digital Connectivity
John Omo, Secretary-General of the African Telecommunications Union, remarked on the pivotal role of telecommunications in driving African economies, with mobile technologies contributing $240 billion annually, supporting around 13 million jobs, and generating $45 billion in government revenue. However, he cautioned that merely increasing network coverage is insufficient for true progress. Omo emphasized the importance of ensuring individuals have not only access to but also the skills necessary to utilize digital services effectively.
Future Outlook and Digital Development
Calvin Baier, Chief Economist at GSMA Intelligence, echoed the sentiment regarding the urgency of addressing the usage gap, which he deemed the greatest digital challenge facing the continent. With only 28% of Africans currently using mobile internet, and less than half accessing it through advanced 4G or 5G smartphones, Baier warned that the expected timeline for closing this gap could extend by another 30 years without increased momentum. He reiterated the correlation between strong policy frameworks and better digital development outcomes, reinforcing the need for evidence-based reforms across Africa.
