A coalition of telecom operators, device makers, and industry groups is pushing to bring smartphones to market at around $40 — a price seen as key to connecting tens of millions of unconnected people in Africa.
The GSMA announced at Mobile World Congress in Barcelona that it is working with major African mobile operators — including Airtel, Axian Telecom, Ethio Telecom, MTN Group, Orange, and Vodafone — to pilot ultra-low-cost 4G devices across six markets: the Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda.
The target is to bring an additional 20 million people online. Many already live within mobile broadband coverage but stay offline because internet-enabled devices remain out of reach financially.
Where the initiative stands
The effort is still in early stages. Commercial negotiations between operators and manufacturers are ongoing, and the GSMA has not confirmed which companies will produce the devices.
The group has engaged with more than 15 smartphone manufacturers. Seven have expressed interest in supporting the initiative, according to Alix Jagueneau, the group’s head of external affairs.
Jagueneau described the $30–$40 price point as “an ambition” and “a best effort intent,” not a guarantee. Proof-of-concept devices could emerge later this year, with early consumer offerings potentially reaching markets by late 2026.
Final pricing will depend on financing schemes, tax policy, and component costs. Development banks and donors could help reduce risk for operators. Import duties, however, remain a significant obstacle — in some markets, taxes on smartphones add as much as 30% to handset prices, sometimes because the devices are classified as luxury goods.
None of the six pilot countries has yet committed to reducing import duties on entry-level handsets. The GSMA says it is working to open dialogue with those governments in the coming months.
“We believe there is an urgency for the public sector to address this part of the equation for digital inclusion purposes,” Jagueneau said.
The group pointed to South Africa’s removal last year of a 9% luxury excise duty on smartphones priced below R2,500 (around $150) as a model for other countries to follow.
The cost problem analysts flag
Analysts are skeptical the industry can hit the target under current conditions. Ahmad Shehab, research analyst at Counterpoint Research, said pushing smartphones into the $30–$40 range “could have been historically feasible when memory costs were significantly lower.”
Devices at that price would likely carry extremely basic specifications and razor-thin profit margins, according to the report. Rising memory costs are adding both urgency and complexity to the effort, Jagueneau acknowledged.
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