South Africa Drops Import Tax on Budget Smartphones: Big Win for Digital Inclusion

South Africa’s government has made headlines this week by announcing the removal of the 9% excise duty on affordable smartphones [1] [2] [3] -a move set to make mobile devices more accessible for millions of South Africans from April 2025. This policy shift aims to boost digital inclusion and help more people get online, especially those in low-income households who have long struggled with the high cost of smartphones.

What’s Changing?

• The 9% import tax (ad valorem excise duty) will no longer apply to smartphones costing less than R2,500 (about $136) when imported into South Africa [2] [3].
• Previously, all smartphones were subject to this tax, making even entry-level devices less affordable for many citizens [4].

 

Why Does This Matter?

• Affordability is the biggest barrier to smartphone adoption in South Africa, where millions still rely on basic 2G and 3G phones or remain offline entirely [6].
• By removing this tax, the government hopes to support digital inclusion, enabling more people to access the internet, online services, and economic opportunities [1] [2].
• The move is also expected to accelerate the transition from older mobile networks to faster 4G and 5G technologies, further bridging the digital divide [3] [4].

Industry and Consumer Impact

• Retailers and importers are likely to pass these savings on to consumers, making budget smartphones more affordable than ever [8].
• The change is a boost for the second-hand and trade-in market, as more people will be able to upgrade to smartphones and participate in the digital economy [6].

What’s Next?

• The new rule came into effect on 1 April 2025, so buyers should already see lower prices on qualifying devices [1] [2].
• This initiative is part of a broader government push to remove obstacles to connectivity and promote digital inclusion for all South Africans [4].