A coalition of Africa’s largest mobile network operators has launched a major push to lower the cost of smartphones across the continent, announcing plans to pilot ultra-low-cost 4G devices priced at about $40 (roughly ?56,000) in six African markets.
The initiative, unveiled at the 2026 edition of the Mobile World Congress in Barcelona, brings together telecom giants including Airtel Africa, Axian Telecom, Ethio Telecom, Orange, Vodacom Group and MTN Group under a handset affordability programme coordinated by the GSMA.
The operators, often referred to as the “G6”, signed a memorandum of understanding with the GSMA and device manufacturers to develop and distribute affordable smartphones aimed at expanding mobile internet access across Africa.
Register for Tekedia Mini-MBA edition 20 (June 8 – Sept 5, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab.
The first phase of the pilot will take place in six countries: Democratic Republic of the Congo, Ethiopia, Nigeria, Rwanda, Tanzania and Uganda.
Together, the participating telecom operators serve roughly 800 million people across the continent, giving the project the scale needed to significantly accelerate smartphone adoption if the pricing target is achieved.
Industry leaders say the programme is aimed at addressing what has become one of Africa’s most persistent connectivity challenges: the “usage gap” between people who live in areas covered by mobile broadband and those who actually use mobile internet.
Angela Wamola, Head of Sub-Saharan Africa at the GSMA, said the affordability of devices remains the biggest obstacle preventing millions from getting online.
“One of the biggest barriers and challenges for Africa is around the affordability of devices,” Wamola said during the launch. “For us, the challenge is around closing the usage gap by bringing devices at an affordable minimum specifications on 4G into the pilot phase.”
According to the GSMA, billions of people globally live in areas where mobile broadband networks exist but remain offline because they cannot afford smartphones. GSMA Director General Vivek Badrinath described low-cost smartphones as the “gateway to digital and financial inclusion” for those users.
Industry data suggests the scale of the gap is particularly acute in Africa. Only about 38% of the continent’s population currently uses the internet, compared with about 68% globally. Smartphone ownership is also far lower than the global average, with estimates indicating that roughly one in four Africans owned a smartphone as of 2024.
Researchers say that lowering handset costs could dramatically change that picture. GSMA estimates that if smartphones priced around $40 become widely available in sub-Saharan Africa, at least 20 million additional people could gain access to mobile internet. If prices drop further to around $30, the figure could rise to 50 million.
To support the rollout, the coalition has already shared draft minimum device specifications with smartphone manufacturers. The guidelines cover basic requirements such as screen size, storage capacity, and battery life, with the goal of ensuring devices remain functional for everyday digital services while keeping production costs low.
The specifications build on discussions that began during the 2025 edition of MWC Kigali, where telecom operators and device makers first explored the possibility of producing mass-market smartphones priced well below typical entry-level models.
Negotiations with distributors suggest that the devices could reach retail markets at a price close to the $40 target if production volumes are large enough.
Many other countries have also shown interest in the programme. Wamola said several governments and operators approached the GSMA during the Barcelona event to express interest in participating in later phases of the initiative.
A major element of the strategy involves government policy. Telecom operators say taxes and import duties often add substantial costs to low-end smartphones, making them unaffordable for millions of consumers. In several African countries, value-added tax and additional levies can increase the retail price of devices by 20% to 30%.
Industry groups are therefore urging governments to eliminate or reduce such taxes for entry-level smartphones.
South Africa has already taken a step in that direction. The government scrapped a 9% luxury tax on smartphones priced below R2,500 in early 2025, a move that operators say helped drive down prices and increase smartphone adoption.
Badrinath said regulatory reforms across Africa will be crucial if the $40 smartphone target is to become a reality.
“Removing taxes and import duties on entry-level 4G smartphones will be critical to achieving scale,” he said.
The economic implications of wider smartphone access could be significant. A joint study by Google and the International Finance Corporation previously estimated that Africa’s digital economy could reach about $180 billion by 2025 and expand to roughly $712 billion by 2050 if internet adoption continues to grow.
Telecom operators believe affordable smartphones could accelerate that transformation by enabling millions of people to access online education, digital financial services, e-commerce platforms, and remote work opportunities.
However, the initiative faces a major headwind from global supply chains.
The smartphone industry is grappling with a severe shortage of memory chips, driven largely by surging demand for artificial intelligence infrastructure.
Manufacturers of DRAM and NAND memory have increasingly diverted production capacity toward high-bandwidth memory used in data-center servers that power AI models. The shift has reduced the supply of conventional chips used in consumer electronics such as smartphones.
Market analysts say the resulting “memory supercycle” has pushed DRAM prices up dramatically in recent months while also increasing the cost of NAND storage chips.
As a result, some projections suggest smartphone manufacturing costs could rise between 8% and 15% in 2026. If those pressures persist, global smartphone prices could increase by as much as 15% to 20%, potentially complicating efforts to reach the $40 price target.
Industry participants acknowledge the risk. Wamola warned that rising component costs could push the retail price of the devices above the initial target in the short term.
“With the memory shortage, the $40 price point could slip away,” she said. “We need this to get started because the momentum will bring us scale.”
To offset those pressures, the coalition is examining several options, including bulk procurement agreements with manufacturers, simplified handset designs, and financing schemes that would allow consumers to pay for devices through instalments or micro-loans.
Operators are also working with distributors in the pilot countries to ensure supply chains are ready once production begins.
Progress on the programme will be reviewed at the next edition of MWC Kigali, scheduled for June 2026, where stakeholders plan to assess early results from the pilot markets and refine the technical specifications for the devices.
For telecom operators, the stakes are high as bringing tens of millions of Africans online would not only expand digital inclusion but also drive higher demand for mobile data services, mobile money platforms, and digital applications.
If the $40 smartphone becomes commercially viable, it could mark a turning point in Africa’s digital expansion, opening the door for millions of people to participate in the continent’s growing internet economy.