02 April 2025

The South African government has announced plans to eliminate a 9% import tax on smartphones priced below 2,500 rand (approximately $137), effective 1 April. This initiative aims to make entry-level smartphones more affordable and encourage greater adoption across the country.

This measure was included in the 2025 budget presented to Parliament by Finance Minister Enoch Godongwana. Government officials noted that the objective is to enhance the accessibility of smartphones within the lower price bracket and to bolster efforts for digital inclusion among low-income households.

The decision comes at a crucial time as the government is transitioning from 2G and 3G networks to 4G and 5G, making smartphones increasingly vital for internet connectivity in South Africa.

According to the Independent Communications Authority of South Africa (ICASA), there are approximately 75 million smartphone subscriptions in the country as of 2023, accounting for about 69% of the total 108.7 million mobile subscriptions reported by the telecom regulator. However, actual smartphone ownership among South Africans may be lower, as individuals often utilize multiple SIM cards or own several smartphones.

While the government’s tax removal could lower the costs of entry-level smartphones, questions remain about whether these devices will support advanced mobile technologies like 4G and 5G.