GSMA Africa Chair Urges Immediate Tax Reforms for Digital Equity
A Call for Strategic Tax Reforms to Boost Digital Inclusion in Africa
Mr. Daddy Mukadi, the Chief Regulatory Officer of Airtel Africa and Chair of GSMA Africa’s Policy Group, has emphasized the urgent need for African governments to recognize telecommunications as a core pillar of economic growth. He has proposed two specific tax reforms that could significantly enhance digital inclusion across the continent.
During his speech at the first edition of the États Généraux du Secteur des Postes et Télécommunications in Kinshasa, DRC, Mukadi addressed government and industry stakeholders. The event aimed to develop a strategic roadmap for the country’s digital and telecommunications sector, with attendance from H.E. President Félix Tshisekedi. As a member of the GSMA Global Policy Group, Mukadi urged a reevaluation of the role of telecommunications in national development.
He argued that the telecoms sector should not be viewed as a niche concern but as a continent-wide imperative. “The telecoms sector can no longer be considered merely as a support sector,” he stated. “It is now a core sector. Both are vital, and every other sector, from security and finance to transport and health, depends on digital technology for growth.”
This call comes at a pivotal time for Africa’s digital economy. According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed US$220 billion to the continent’s economy in 2024. This represents 7.7% of GDP and is expected to rise to US$270 billion by 2030.
Despite this progress, nearly 75% of people across Africa remain offline, even though mobile networks now cover 95% of the population. The GSMA identifies this gap as the continent’s most pressing connectivity challenge, primarily driven by the high cost of devices.
Mukadi, therefore, called for strategic adjustments to public policy, legal, and regulatory frameworks to support broader access to digital services. He stressed that the telecommunications sector should be treated as a foundational pillar of economic development, with stakeholders collaborating to accelerate investment, expand coverage, and close the usage gap.
Key Barriers to Digital Inclusion
The Chief Regulatory Officer of Airtel Africa highlighted several barriers to digital inclusion, including the affordability of smartphones and the impact of import duties on telecommunications infrastructure. To address these challenges, he proposed a two-to-three-year exemption on import duties and taxes for entry-level smartphones priced between US$40 and US$150. This initiative aims to bridge the usage gap by making devices more accessible to a wider population.
Additionally, he called for the removal of entry duties on telecommunications equipment for at least three years. This measure would support the expansion of network coverage, enabling more people to connect to the digital economy.
According to Mukadi, “these measures would help deliver inclusive and sustainable digital technology for economic and social progress.” They would also support faster connectivity, improved access, and the ability to connect more people, businesses, and communities to the digital economy.
Collaboration Between Government and Private Sector
Mukadi emphasized the importance of collaboration between government and the private sector to create a regulatory environment that encourages innovation, protects consumer interests, and supports long-term investment. He believes that such cooperation is essential for fostering a thriving digital ecosystem in Africa.
By implementing these reforms, African nations can take significant steps toward achieving digital inclusion and leveraging the full potential of the telecommunications sector. This effort will not only drive economic growth but also improve the quality of life for millions across the continent.
