South Africa wants to remove a tax to facilitate smartphone access📱

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Access to smartphones remains a major obstacle to the adoption of digital services, largely due to their high cost. To address this issue, the South African government has decided to take action by making it easier to acquire these devices, particularly for low-income households.

A tax measure to reduce smartphone prices 📉

Starting April 1, the removal of the 9% tax on smartphones valued at less than 2,500 rands (approximately $137) will take effect. This initiative, announced during the 2025 budget presentation on March 12 by Finance Minister Enoch Godongwana, aims to lower the cost of entry-level smartphones. It is also expected to encourage their adoption by a broader population.

The goal of this project is to make these technologies more accessible to low-income households. Additionally, the country must support efforts to modernize education and facilitate access to online public services. This initiative is therefore intended to promote a more inclusive digital environment.

A transition to 4G and 5G in preparation 🌐

This decision comes as the government prepares for the gradual shutdown of 2G and 3G networks. The transition to 4G and 5G will make smartphones essential for accessing the Internet, further emphasizing the need to make these devices more affordable.

Currently, about 75 million South Africans use a smartphone to access mobile services, according to the Independent Communications Authority of South Africa (ICASA). However, despite declining prices in recent years, many consumers still find these devices too expensive.

According to a report by the Global System for Mobile Communications Association (GSMA), even though smartphones priced under $100 are becoming more common, cost remains a major barrier to adoption. Eliminating the tax on entry-level smartphones could make these devices more accessible.

A digital skills challenge to overcome 🧑‍💻

Despite the reduction in smartphone costs, the real challenge remains the adoption of these technologies by the population. Indeed, digital skills continue to be a crucial issue in the country. Authorities fear that smartphones may not be fully utilized, limiting the impact of this initiative. Efforts must therefore be made to strengthen South Africans’ digital skills.

While this measure by the South African government is a step in the right direction, it is essential to assess its effectiveness. Lower costs could facilitate smartphone access. However, the actual adoption of mobile Internet will also depend on the population’s ability to use these new technologies. The challenge is therefore to make smartphones accessible while also developing the necessary digital skills for their use.

What do you think ?!
Do you believe that reducing smartphone costs will influence the adoption of the Internet and digital services in South Africa? Let us know in the comments ☺️