The GSMA has revealed in their The Mobile Economy Sub-Saharan Africa report that taxes and duty fees imposed on smartphones can increase their prices by 10 to 30 per cent, with variance across countries within Africa. They note that these additional costs have contributed to the inaccessibility of smartphones for a majority of the African population, due to inflated prices.

However, GSMA underscores that taxation is not the sole factor driving up smartphone prices. The cost of manufacturing these devices also plays a crucial role, as it remains significantly high in Sub-Saharan Africa. This combination of high manufacturing and taxation costs makes it difficult for manufacturers to lower their selling prices.

These manufacturing challenges are particularly notable in the 5G and 4G markets, where the price points of devices are prohibitively expensive for the average African consumer. The GSMA emphasises that cost and taxation continue to directly affect the final consumer prices of smartphones.

Today, approximately 60% of Sub-Saharan Africa's population do not use mobile internet, despite living in areas with network coverage. Currently, the exorbitant cost of smartphones remains a significant barrier to mobile internet usage within the region.

The Telecommunications Association reports that in order to address the problem of affordability, manufacturers and network operators are devising cost-cutting measures. One such strategy has been to reduce the average selling price of smartphones, as noted by the influx of low-cost models available from Chinese brands like Tecno, Itel, and Infinix.

Moreover, the GSMA advocates for governmental interventions to enhance affordability, recommending tax exemptions for low-cost handsets, a strategy already implemented in Rwanda. These efforts should exist alongside measures to ensure that these affordable handsets meet the lifestyle requirements of consumers, and thereby encourage their willingness to pay.

In conclusion, while manufacturing costs, supply chains, and pricing decisions significantly affect smartphone costs, the deciding factor remains the ability of users to afford these devices. For instance, only 58% of urban Nigerians and a mere 32% of those in rural regions could afford smartphones in 2022, highlighting an area of potential growth for the telecommunications industry within the country.