---
title: Africa Has the Networks. The Bigger Problem Is Affording a Phone
description: Africa’s mobile internet challenge is shifting from network coverage to affordability, as expensive smartphones, data costs keep millions offline.
---

[AfroForm Blog | Business Insights for Africa](https://afroform.com/africa-business-registration-blog)

# [Africa Has the Networks. The Bigger Problem Is Affording a Phone](https://afroform.com/africa-business-registration-blog/africa-has-the-networks.-the-bigger-problem-is-affording-a-phone)

 Written by [Deborah Sanni](https://afroform.com/africa-business-registration-blog/author/deborah-sanni) | Oct 1, 2026, 3:21:57 PM

 

For years, Africa's connectivity story has been about building the infrastructure needed to get people online.

Telecom operators have invested billions in towers, fibre networks and mobile broadband. Governments have auctioned spectrum and pushed for wider coverage. Across several markets, 4G networks now reach the overwhelming majority of the population.

In Senegal, 4G coverage reaches about 97% of the population. In Uganda, it is about 98%, while Nigeria has more than 80% 4G coverage.

But there is a problem.

**Millions of people living under those networks are still not using mobile internet.**

The reason is increasingly less about whether there is a signal and more about whether people can afford the equipment and services required to use it.

As Caroline Mbugua, a senior official at the GSMA, put it, Africa has built the networks, but too many people still cannot afford to use them.

That makes the next phase of Africa's connectivity challenge much more complicated.

A person needs an internet-enabled phone. They need money for data. They need enough digital skills to use online services safely and effectively. And, ultimately, they need to see enough value in being online to justify the cost.

## Africa's coverage gap is becoming a usage gap

The numbers illustrate the problem.

The GSMA's 2026 *State of Mobile Internet Connectivity* report estimates that **3.1 billion people globally live within mobile broadband coverage but do not use mobile internet**.

More than 90% of the world's 3.4 billion people who remain offline already live in areas where mobile broadband is available.

Africa accounts for a significant share of that unused capacity.

About **906 million people — nearly 60% of Africa's population — live within reach of 3G, 4G or 5G networks but remain offline.**

The situation is particularly striking in Sub-Saharan Africa. Only about **25% of the population uses mobile internet**, while another 66% lives within mobile broadband coverage but does not use it.

In other words, the continent has a **usage problem**, not simply a coverage problem.

This matters for telecom operators too.

Companies have spent heavily to build these networks, but a network that reaches a community does not automatically generate revenue. If the people living there cannot afford smartphones or data, the infrastructure remains underused.

Mbugua compared it to building a road without enough cars to use it.

The road still needs to be maintained, but without enough traffic, it becomes difficult to justify the next round of investment.

Africa is expected to attract about **$76 billion in mobile network investment between 2025 and 2030**, according to the GSMA.

The question is whether the continent can turn that infrastructure into meaningful digital participation.

And increasingly, that conversation starts with the phone in someone's hand.

## The smartphone is the new entry point

For someone in a wealthier market, buying an entry-level smartphone may be relatively straightforward.

For a low-income household in Africa, it can represent a significant financial decision.

The GSMA found that by the end of 2025, an entry-level internet-enabled phone cost the poorest 20% of people in low- and middle-income countries the equivalent of **44% of their average monthly income**.

In Sub-Saharan Africa, the figure was even higher: **76% of average monthly income**.

That changes what a smartphone represents.

It is no longer simply a device for making calls or browsing social media. For millions of people, it can be a banking tool, a classroom, a business terminal, a source of government information and a gateway to online work.

But if the device itself costs too much, all the digital services built around it become inaccessible.

This is why the industry's push for a smartphone costing around **$30** has attracted so much attention.

## The $30 smartphone problem

A cheaper smartphone could dramatically expand access to mobile internet.

GSMA modelling suggests that a **$30 entry-level smartphone could potentially make devices affordable for almost 1.6 billion people** living within mobile broadband coverage.

At $20, that number could rise to around 2.2 billion.

The problem is getting a capable smartphone down to those prices.

The cheapest devices are already operating on very thin margins, while manufacturers are dealing with rising costs across the supply chain.

Memory prices have surged. Chipsets and other components have become more expensive. Foreign exchange movements, shipping, taxes and distribution costs can all push up the final retail price.

The result is already visible in Africa's smartphone market.

Omdia estimates that the average smartphone selling price on the continent increased by **$41 year-on-year to $202**, while shipments of devices priced below $100 fell by **34%**.

That creates a particularly difficult situation for consumers at the bottom of the market.

The industry wants to make smartphones cheaper at exactly the time when some of the components required to build them are becoming more expensive.

And even if manufacturers manage to produce a $30 phone, that may not be the price a customer eventually pays.

Import duties, taxes, logistics, distribution costs, currency fluctuations and retailer margins can all add to the final bill.

So the $30 smartphone is not simply a manufacturing challenge.

**It is a policy challenge too.**

## Governments have a role to play

The GSMA points to several areas where governments could influence the cost of connectivity: spectrum, taxation and energy.

### Spectrum

Mobile operators need spectrum to provide wireless services, but governments often see spectrum auctions as an opportunity to generate immediate revenue.

The GSMA argues that excessively high spectrum costs can ultimately make connectivity more expensive.

The organisation has called for approaches such as longer licence periods, staggered payments and pricing structures that prioritise wider connectivity rather than simply maximising upfront government revenue.

The argument is straightforward: if operators spend too much acquiring spectrum, there is less money available for network investment and potentially less room to reduce prices for consumers.

### Taxes

Smartphones and mobile services can attract import duties, VAT, excise taxes and other charges across African markets.

Those taxes generate government revenue, but they can also increase the cost of the devices people need to participate in the digital economy.

South Africa provides an interesting example.

In April 2025, the government removed a **9% excise duty on smartphones priced below 2,500 rand**.

The GSMA reported that sales of entry-level smartphones increased by 80% over the following 11 months.

That increase cannot necessarily be attributed entirely to the tax change, but the example highlights how government policy can influence the affordability of devices.

For governments trying to expand digital inclusion, the question becomes whether taxing connectivity today could ultimately cost the economy more in lost digital participation tomorrow.

### Energy

Then there is electricity.

Mobile networks require significant amounts of power, and in markets where electricity supply is unreliable, operators may have to rely heavily on diesel generators and other backup systems.

According to the GSMA, energy can account for as much as **30% of an operator's operating expenditure in some markets**.

Those costs eventually affect the economics of providing mobile services.

The result is a chain reaction:

**Expensive energy → higher network costs → expensive services → lower usage → weaker returns on infrastructure.**

And the people most affected are often those who can least afford to pay.

## A cheap phone alone won't solve the problem

Making smartphones cheaper is important, but it isn't the entire solution.

Someone can have a $30 smartphone and still remain offline.

They may not be able to afford mobile data. They may lack digital skills. Their local language may not be well represented online. They may be worried about scams or online safety.

There may also be little relevant content or services available to them.

This is why Africa's digital inclusion challenge is becoming broader than telecommunications.

It is about **affordability, skills, content, trust and usefulness.**

A farmer who can access weather information, digital payments and agricultural markets has a different reason to stay online from someone who only sees the internet as an expensive entertainment service.

A small business owner who can find customers through social media or receive payments digitally may be willing to spend more on data because the internet directly contributes to income.

The more useful the internet becomes, the easier it is to justify its cost.

## Africa needs to turn coverage into participation

Africa has made significant progress in building the physical infrastructure required for mobile connectivity.

The next challenge is ensuring that people can actually use it.

The GSMA estimates that closing the global mobile internet usage gap could generate **$3.5 trillion in additional GDP between 2023 and 2030**, with more than 90% of those gains potentially going to low- and middle-income countries.

That is a modelled estimate rather than a guaranteed outcome, but it highlights what is at stake.

The conversation around connectivity can no longer stop at *“Does your area have network coverage?”*

The more important questions are becoming:

**Can you afford a smartphone?**

**Can you afford the data?**

**Do you know how to use digital services safely?**

**And is there enough value online to make staying connected worthwhile?**

Africa has spent years building the roads of its digital economy.

Now, the challenge is making sure people can afford the cars.

 

 

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