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(Ecofin Agency) – The Internet penetration rate in Chad was still only 14% in 2020, according to official data. To catch up with the global pace and improve this low rate, the government is planning several measures.
The Chadian government announced it is waiving taxes on imported electronic devices for the next five years. The measure took effect yesterday January 24, according to an order published by the Ministry of Finance.
Through this tax exemption, the Chadian government is laying the foundations for greater participation of the population in the digital economy. The government wants to improve the internet penetration rate in the country and accelerate its digital transformation.
Chad’s internet penetration rate is one of the lowest on the continent. In its 2020 annual report, the Electronic Communications and Posts Regulatory Authority (ARCEP) revealed that the rate was still 14.2% in 2020. This represents 2,310,332 Internet users out of 8,696,859 telecom subscribers. The Global System Operators’ Association (GSMA), for its part, reported in “The Mobile Economy Sub-Saharan Africa 2021” that the low mobile penetration in Africa is closely linked to the high cost of mobile devices. The institution explained that of the 1,084 million people in the region, 575 million (53%) live in areas covered by mobile broadband networks but do not yet enjoy it due to the lack of suitable devices.
Meanwhile, the Alliance for Affordable Internet (A4AI) revealed in its 2020 report “From luxury to lifeline: Reducing the cost of mobile devices to reach universal internet access. Web Foundation,” that the average price of a smartphone in Africa was $62. This represents 62.8% of the monthly gross national income per capita. Along with GSMA, A4AI advocates for a reduction in certain taxes that affect the price of mobile devices and hinder people’s access to telecom services.
In 2017, when it released the “Digital inclusion and mobile sector taxation in Chad” report, GSMA highlighted the need for tax reform to improve the ICT sector, in line with the Vision 2030 strategy.
Muriel Edjo
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