By Michael Ajayi/Jessica Dogo
The African Telecommunications Union (ATU) and the Global System for Mobile Association (GSMA) have urged African governments to cut smartphone taxes in order to bridge digital divide in the region.
They made the demand on Wednesday in Abuja, during the Digital Africa Summit Workshop, jointly organised by the two bodies.
The event brought together regulators, policymakers and industry stakeholders to discuss Africa’s digital transformation.
They advocated the removal of taxes and levies on entry-level smartphones to improve access to digital services across Africa.
The duo also said that the policy and regulatory reforms would accelerate digital inclusion, expand connectivity and unlock the continent’s artificial intelligence (AI) potential.
The ATU Secretary-General, Mr John Omo, said the latest GSMA Mobile Economy Africa Report underscored the growing contribution of the telecommunications sector to the continent’s economy.
According to him, mobile technologies and services contributed 240 billion dollars to Africa’s economy, supported about 13 million jobs and generated 45 billion dollars in public revenues.
He said the figures reflected the remarkable transformation of Africa’s mobile sector over the past 25 years.
“We need to take stock and applaud the work that has been done by the industry. However, coverage alone cannot be the only measure of progress.
“What matters is whether people can afford digital services, possess the skills to use them and trust the systems that deliver them,” he said.
Omo said the newly developed Digital Africa Index would provide policymakers and regulators with evidence-based insights into assess digital progress across the continent.
He urged African governments to interrogate the findings, compare them with national realities and use the data to strengthen policy decisions.
He also said there was need for sustained collaboration among regulators and policymakers to address Africa’s digital challenges.
GSMA Africa’s Senior Director of Public Policy and Communications, Ms Caroline Mbugwa, said Africa was entering the era when robust digital infrastructure would determine the continent’s readiness for Artificial Intelligence (AI).
Mbugwa said although no fewer than 961 million Africans were covered by mobile broadband networks, they were not using the services due to affordability constraints, creating what she described as the usage gap.
“If this challenge remains unresolved millions of Africans risk being excluded from AI adoption and the opportunities that come with digital transformation,” she said.
Mbugwa said that South Africa’s removal of a nine per cent luxury goods tax on entry-level smartphones had accelerated smartphone adoption.
She also said the challenge of expanding broadband infrastructure to rural and remote communities could cost between two and five times more than urban areas while generating significantly lower revenues.
She also advocated regulatory parity, insisting that all providers offering similar communication services should operate under the same regulatory framework to promote fair competition.
According to her, technology-neutral regulatory frameworks would enable operators to deploy the most suitable technologies, including satellite services, to bridge connectivity gaps.
“The Digital Africa Index provides regulators with practical evidence on where reforms are needed.
“Policy decisions should be data-driven if Africa is to achieve meaningful digital transformation,” she said.
Mbugwa said that GSMA would publish its AI Atlas initiative aimed at incorporating African languages into large language models to improve digital inclusion and AI accessibility.
She said Nigeria was among the participating countries with four Nigerian languages already integrated into the initiative.
Earlier, GSMA’s Head of Policy and Regulation, Ms Michaela Angonius, called for modernisation of telecommunications licensing regimes across Africa.
Angonius said existing licensing frameworks remained technology-specific and were no longer suitable for emerging technologies such as satellite communications.
She recommended technology-neutral licensing systems that would accommodate all communication service providers under a common regulatory framework.
She urged governments to ensure Universal Service Funds were effectively utilised to support rural connectivity instead of remaining dormant while increasing the cost burden on operators and consumers.
She advised regulators to prioritise investment-friendly policies over rigid quality-of-service regulations, adding that countries with the best network performance focused on encouraging infrastructure investment over imposing excessive regulatory requirements.
She said that while different countries faced various regulatory challenges, reforms should be tailored to meet national circumstances while promoting investment, competition and digital inclusion.
The Digital Africa Summit focused on strategies to accelerate connectivity, strengthen regulatory frameworks and position Africa for the emerging AI-driven digital economy. (NAN)(www.nannews.ng)
Edited by Uche Anunne