GSMA Report: Policy Reforms Could Connect 180,000 More People in Gabon by 2031

Despite 95% 4G coverage in Gabon, more than half the population remains offline, creating a significant "usage gap" that hinders economic participation. A new GSMA report advocates for tax reforms on entry-level smartphones and expanded digital government services to connect 190,000 additional citizens and generate XAF 63 billion in annual public revenue by 2031.

What was announced

The report, titled Gabon’s Digital Economy: Policy Reforms That Will Drive Gabon’s Digital Future, highlights a stark contrast between network availability and actual adoption. While 4G networks reach nearly the entire population and only 5% of connections are limited to 2G, only four in ten Gabonese citizens currently use mobile internet. The GSMA identifies affordability and digital literacy as the primary barriers to closing this gap.

To address these hurdles, the report proposes a series of coordinated reforms. Central to these is the reduction of VAT on entry-level smartphones, which currently face an 18% tax rate compared to just 10% for laptops and desktop computers. The GSMA suggests that lowering this tax, combined with flexible handset financing, would mirror successes seen in South Africa. There, the removal of a 9% luxury excise duty on phones priced below R2,500 led to the sale of 1.1 million additional devices within 11 months.

The modelling suggests that such reforms could increase unique mobile internet subscribers from 1.06 million in 2026 to 1.48 million by 2031. Beyond consumer taxes, the report calls for reducing sector-specific charges on operators from 11% of gross revenue to 3%. It also emphasizes the need for digitalizing public services, noting that while 62% of adults use mobile money, expanding digital payments for health, education, and administrative fees would provide the necessary "demand-side" pull to bring more users online.

The companies involved

The GSMA is a global organization that represents the interests of mobile operators and the broader mobile ecosystem. It unites more than 750 operators with hundreds of companies across the internet, software, and hardware sectors. The organization plays a dual role in the industry: it acts as a technical standard-setter, managing initiatives like the Open Gateway API framework, and serves as a powerful advocacy body that engages with governments to shape telecommunications policy and digital inclusion strategies.

In the African context, the GSMA is a frequent interlocutor for regulators, providing data-driven analysis on how taxation and spectrum allocation impact GDP growth. By focusing on the "usage gap" rather than just the "coverage gap," the GSMA has shifted the conversation toward the total cost of mobile ownership. This includes not just the price of data, but the upfront cost of hardware and the regulatory fees that operators often pass down to consumers in emerging markets.

What FF News has reported before

The GSMA has been a consistent subject of coverage regarding its efforts to standardise and secure the global mobile economy. FF News previously reported on the expansion of the GSMA Open Gateway initiative, including when Comviva Named Official Channel Partner for GSMA Open Gateway APIs and D8 Corporation Joins GSMA Open Gateway to Eliminate SMS Fraud with Network APIs. These moves demonstrate the organization's focus on creating interoperable network services to combat financial crime.

Furthermore, the scale of the digital economy the GSMA monitors was highlighted in the report that Mobile Money Surpasses Two Billion Registered Accounts and Over Half a Billion Monthly Active Users Globally. The intersection of telecommunications and finance was also a key theme when the Mobile and Banking Industries Join Forces to Fight Fraud, an initiative aimed at protecting the very digital ecosystems the GSMA is now trying to expand in Gabon.

What this means

This report signals a pivot in the African digital narrative from infrastructure deployment to economic utility. For years, the industry focus was on "connecting the unconnected" through towers; now, the bottleneck is the device in the user's hand. The 18% VAT on smartphones in Gabon, while laptops enjoy a lower rate, is an archaic policy that treats mobile devices as luxury goods rather than essential tools for financial inclusion. If the Gabonese government adopts these recommendations, it will put significant pressure on neighboring CEMAC nations to harmonize their own digital taxes. The real test for the sector will be whether handset manufacturers and financing partners can meet the government halfway by lowering the barrier to entry for the poorest 40% of households.