The increasing tax burden imposed on the mobile industry in sub-Saharan Africa is stifling economic growth, says the GSMA.

The GSMA -- which is an association of mobile operators and related companies -- has called on governments in sub-Saharan Africa to review their approach to increasing mobile phone taxes.

A GSMA report dubbed 'Surtax on International Incoming Traffic' (SIIT) claims these taxes could lead to lower revenues for mobile operators and governments, and higher prices for consumers in Africa.

Furthermore the report argues that imposing higher charges for the termination of international inbound traffic suppresses demand.

"Sub-Saharan Africa is the fastest-growing region globally, with 328 million unique mobile subscribers and an annual growth rate of 18% over the last five years. However, with subscriber penetration of just 37%, there is clearly still huge potential for greater growth ahead," said Tom Phillips, chief regulatory officer, GSMA.

"A short-term focus by some countries on generating revenue through increasing the SIIT, combined with the continued imposition of USF levies despite accumulated funds that are not being effectively employed, will clearly have a negative impact on the domestic mobile sector and other businesses in the region," Phillips explained.

The GSMA report also studies effects of SIIT in six sub-Saharan Africa countries.

The report further notes that in countries where SIIT is imposed, it has caused the price of terminating international incoming calls to increase by an average of 97%, with an increase of up to 247% in Burundi.

Meanwhile for African businesses that trade across borders where the SIIT has been imposed, this negatively affects regional integration, says the GSMA.

Analyst for Ovum in East Africa Danson Njue has told ITWeb Africa that he agrees with the GSMA report, especially on the impact of taxes to consumers and businesses.

"A good example is in the East African region where some countries increased taxes of international call termination, greatly affecting business in the region," he said.

"This has resulted in an increase in roaming charges across the region. It is worth noting that subscribers pay more to terminate calls in the region as opposed to calling some European markets," he added.

Njue concluded, "Regional telcos have complained that the high roaming charges are not conducive for regional trade, which also frustrates efforts for regional integration. However, there are plans to harmonise roaming rates in the region by the end of this year."