In 2018, a GSMA study pointed to the unaffordable price of smartphones as one of the main barriers preventing people living in internet-covered areas from accessing mobile internet services in Africa.
Smartphones cost about 62.8% of most Africans’ monthly income, according to the Alliance for Affordable Internet. “Africa’s persistent digital divide can be explained by socioeconomic factors, with the affordability of devices and data being key inhibitors,” according to Jane Munga, Africa Fellow at the Carnegie Technology Policy Program.
Recently, the advent of Buy Now Pay Later platforms such as Techstars-backed Keza Africa has allowed users to purchase smartphones and other gadgets through a deferred payment scheme. At the same time, a new trend is emerging, African governments are establishing local factories to produce and assemble low-cost smartphones to better serve their citizens.
“Manufacturing the gadgets in the country will allow us to reduce the cost of smartphones in the country and therefore increase participation in terms of connectivity,” said Felix Mutati, Zambia’s Minister of Technology and Science, announcing the country’s plan to release a smartphone. factory by June 2024.
Just days before this announcement, Kenya unveiled a $50 smartphone assembly plant, the result of a partnership between Safaricom, Faiba and their assembly partner, East Africa Device Assembly Kenya Limited (EADAK).
According to Joshua Chepkwony, the president of EADAK, β[It] will support the government’s agenda to enhance digital inclusion in the country. We have been able to achieve an affordable price through a collaborative approach that includes industry partnerships and favorable government policies.β
Recall that last year, Kenyan President William Ruto shared that his government was working with telecom companies within the country to create what he called βthe cheapest smartphone in Africaβ. The launch of Neon Smarta and Neon Ultra is a result of this collaboration.
In 2019, the Government of Rwanda launched the Connect Rwanda Challenge, aiming to provide one million smartphones to disadvantaged households in the country. More recently, Airtel Africa unveiled a partnership with Rwanda to support the country’s smartphone penetration goals, offering 4G smartphones priced at $16.50, with a deferred payment plan of $0.80 per month.
“Rwandas already use smartphones, but we want to enable many more,” says Paul Kagame, the country’s president.
Previously, Rwanda had partnered with telecommunications companies such as MTN for a similar purpose, with the distribution of smartphones, including locally manufactured devices from the Mara Group, who are arguably the pioneers of made-in-Africa devices.
In addition to Rwanda and Kenya, other African countries that have launched or have access to low-cost smartphone initiatives include South Africa, Senegal and Ivory Coast. However, this new trend is likely to spread across the continent.