Malawi targets smartphone tax relief

Malawi telecoms regulator plans smartphone device subsidies.
Malawi telecoms regulator plans smartphone device subsidies.

Malawi should remove the 10% surtax on internet services and review the 17.5% value-added tax (VAT) on smartphones to make digital access affordable, says Dr Shadric Namalomba, minister of information and communications technology.

Speaking at the GSMA Digital Africa Summit in Lilongwe, Namalomba urged government and industry stakeholders to shift focus from expanding telecom infrastructure to reducing high taxes, improving digital literacy, and making mobile devices accessible.

He said Malawi must increase its national mobile internet usage rate from 12.5% to at least 30% by 2030 to prevent the majority of citizens from being excluded from digital economic development

“Discussions about artificial intelligence and other emerging technologies will not be inclusive if most Malawians cannot access the internet,” said Namalomba, responding to a GSMA report identifying an 80% usage gap across covered areas.

The policy shift is supported by telecom regulators who acknowledge that expanding networks alone has failed to drive adoption.

“Malawi’s 12.5% mobile internet penetration shows that infrastructure alone is not solving the country’s digital divide,” says Mayamiko Nkoloma, Director General of the Malawi Communications Regulatory Authority (MACRA).

MACRA is evaluating mechanisms to deploy the Universal Service Fund to subsidise consumer devices and support digital literacy projects, including the "Connect a School" initiative and a proposed "one tablet, one student" programme.

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