African mobile operators are planning a US$40 phone

A coalition of Africa’s largest mobile network operators – MTN, Airtel, Vodacom, Orange, Axian Telecom, and Ethio Telecom – plans to launch a US$40 smartphone, targeting millions of consumers currently priced out of the mobile internet market. Collectively, these companies serve about 800m African subscribers.

Africa’s smartphone market is currently dominated by Chinese brands, which offer devices tailored to local needs at much lower prices than high-end models from Apple or Samsung. Yet, despite these cheaper alternatives, affordability remains a formidable barrier. In 2024, only one in four people in Africa owned a smartphone, half the global average. Despite mobile network coverage reaching up to 85% of the population in some African countries, millions of people remain offline simply because they cannot afford smartphones. Instead, consumers are largely forced to rely on basic feature phones, which made up about 40% of the continent's total mobile shipments in 2025.

To tackle this, the coalition is negotiating directly with manufacturers, having outlined minimum specifications for storage, screen size and battery life in the aim of bringing the first phones to market by late 2026. The rollout will pilot in the Democratic Republic of Congo, Ethiopia, Nigeria, Rwanda, Tanzania, and Uganda.

It is estimated that a US$40 smartphone could bring mobile internet to an additional 20m people in sub-Saharan Africa, while a US$30 handset could connect up to 50m new users. The coalition’s ultimate goal is to drive the unit price down even further, to as low as US$20.

However, achieving these price points presents significant supply-chain challenges. Specifically, a recent surge in the global cost of memory chips – which are essential for storing data and running basic apps – will make it difficult to attain the price range required to unlock mass adoption. Driven by the explosive demand for AI data centres, chipmakers have shifted their production toward high-end AI components, creating a severe global shortage of the standard memory used in smartphones.

To make the economics work, the GSMA – the global mobile industry body – is urging governments to cut taxes and import duties on entry-level phones, which can inflate prices by as much as 30% in some markets. Industry stakeholders point to South Africa as a blueprint. Last year, the country removed a 9% luxury excise duty on smartphones priced below R2,500 (about US$150), triggering an overall decline in retail costs. However, the six countries identified for the coalition's pilot programme have yet to commit to similar import duty or tax reductions. 

GSMA estimates that the mobile ecosystem in Africa provides direct employment to over 5 million people. In 2024, mobile technologies and services generated 7.7% of GDP across Africa, a contribution that amounted to US$220bn of economic value added. The greatest benefits came from productivity that is added to the economy. By 2030, mobile’s contribution in Africa is expected to reach approximately US$270bn, or 7.4% of the African GDP. This will primarily be driven by further improvements in productivity brought about by the continued expansion of mobile services and the growing adoption of digital technologies, such as AI.

 

References

'GSMA and leading African operators propose minimum requirements for affordable 4G smartphones', MTN, 21 October 2025

'Smartphone market set for biggest ever decline in 2026 on memory price surge, IDC says', Reuters, 26 February 2026

'Pioneering affordable access in Africa: GSMA and Handset Affordability Coalition members identify six African countries to pilot affordable $40 smartphones', GSMA, 3 March 2026

'GSMA coalition targets $40 smartphone to connect millions across Africa', TechCentral, 3 March 2026

'African telecoms giants plan to launch $40 smartphone', Semafor, 4 March 2025

'Push for $40 smartphones builds momentum but still faces cost hurdles', TechCrunch, 7 March 2026