Malawi targets cheaper smartphones/internet by reviewing telecom taxes as internet penetration stagnates at 12.5%

Malawi's ICT minister Shadric Namalomba has called for removing the 10% surtax on internet services and reviewing the 17.5% value-added tax on smartphones to make connectivity more affordable. This comes as the country struggles with low internet penetration—official figures show 18% of Malawians online by end-2025, but the telecom regulator estimates actual usage is closer to 12.5% due to high device and data costs.

The government aims to reach 80% internet penetration by 2030, a goal officials admit requires more than just infrastructure—smartphones and data must become financially accessible. Malawi previously reduced VAT from 17.5% to 16.5% in 2008 before raising it back to 17.5% in 2025 to boost revenue. Now, with similar tax debates happening across Africa, Namalomba's proposal could signal a regional shift toward prioritizing digital inclusion over telecom taxation.

If implemented, these changes would directly lower smartphone purchase prices and monthly data costs for Malawians. The country is also exploring using its Universal Service Fund to subsidize devices and launch programs like "one tablet, one student" to drive adoption. For Nigerians facing comparable affordability challenges—where data costs remain among Africa's highest—this policy experiment offers a potential blueprint for making connectivity truly universal.

Will Malawi's tax relief approach gain traction among other African governments seeking to boost internet access without sacrificing revenue, and how might it influence future telecom pricing policies affecting your wallet?

SOURCE: https://techcabal.com/2026/08/24/techcabal-daily-cell-c-plan-c/