The South African government aims to make smartphones more accessible to low-income citizens by removing the luxury tax starting April 2025.
Government Plan to Reduce Taxation
South Africa plans to remove the luxury tax currently adding 9% to smartphone costs. This is expected to make smartphones more affordable for low-income households.
Shift to Next Generation Networks
South Africa aims to phase out 2G and 3G networks by the end of 2027 to free up frequencies for faster 4G and 5G networks. This move is intended to drive technological development, though it risks widening the digital divide.
Impact on Mobile Connections in South Africa
As of early 2025, there were 124 million mobile connections in South Africa, making up 193% of the total population. Of these, 97.5% are classified as 'broadband', connecting via 3G, 4G, or 5G networks.
The removal of the luxury tax in South Africa could significantly increase smartphone accessibility for low-income citizens and support digital inclusion. Meanwhile, the development of 4G and 5G networks will be a key step towards the country's technological modernization.
