Africa needs unified efforts in smartphones production to unlock digital economy potential

Dar es Salaam. The Director General of the Tanzania ICT Commission (ICTC), Dr Nkundwe Mwasaga, has said that Africa has a great opportunity to reach its potential in the digital economy if it unites efforts in smartphone production for the African market and beyond.

Speaking at the Mobile Phones for Africa Summit, held on November 21–22, 2024, at the Norfolk Hotel in Nairobi, Kenya, Dr Mwasaga revealed that increased smartphone production would not only bridge the digital divide but also unlock vast economic opportunities.

“Africa holds vast potential for excelling in the digital economy, but this can only be realised through concerted efforts to boost local production of affordable smartphones,” he shared.

He added, “Smartphone production in Africa will allow more people to own devices at affordable prices, create numerous jobs, and significantly boost national revenue streams while enhancing digital economic growth.”

The summit, organised by Qhala, GSMA, Smart Africa, and the African Continental Free Trade Area (AfCFTA), with sponsorship from the Bill & Melinda Gates Foundation, focused on addressing barriers to smartphone production and creating a thriving mobile manufacturing ecosystem tailored to Africa’s needs.

Currently, less than 44 percent of Africans own mobile phones, a statistic that reflects the limited accessibility of digital services, economic opportunities, and social development across the continent.

Challenges such as high production costs, taxation policies, and limited manufacturing capacity contribute to this low penetration rate. During the summit, stakeholders explored how domestic smartphone manufacturing could overcome these barriers and provide affordable devices to the continent’s growing population.

“Local production has the potential to create inclusive economies, but we need to address challenges such as regional trade barriers and low-scale economies to achieve meaningful outcomes,” Dr Mwasaga added.

The summit brought together key stakeholders, including government representatives, business leaders, mobile network operators, local manufacturers, and international development partners.

Discussions revolved around strategies to foster regional collaboration, promote innovation, and align policies across African countries to support local production.

The African Continental Free Trade Area (AfCFTA) emerged as a cornerstone of these discussions. With a combined GDP of $3.4 trillion, the trade bloc offers an opportunity to harmonise legal frameworks, foster cross-border trade, and reduce production costs.

“Harmonising trade policies through AfCFTA could facilitate the creation of regional manufacturing hubs, leading to reduced production costs and increased accessibility to smartphones,” Dr Mwasaga noted.

Participants also drew lessons from countries such as Rwanda and Egypt, which have made strides in digital transformation through innovative policies and public-private partnerships.

“These examples demonstrated the potential of domestic smartphone manufacturing to drive digital and economic growth,” he said.

Among the key strategies discussed was aligning legal frameworks across African nations to remove trade barriers, streamline customs processes, and facilitate the movement of locally manufactured smartphones across borders.

Smartphone production is more than just a solution to Africa’s digital divide; it is a pathway to unlocking economic potential.

“Increased manufacturing capacity could generate jobs, reduce reliance on imports, and position Africa as a competitive player in the global technology market,” he said.

He said that as Africa transitions toward a digital future, stakeholders at the summit committed to fostering partnerships and implementing innovative solutions to overcome barriers to production.

“The goal is to lay a solid foundation for a robust smartphone manufacturing industry that supports Africa’s digital transformation for decades to come,” he said.