Egypt and Côte d’Ivoire have begun removing key tax exemptions in early 2026, signalling a shift toward tighter revenue mobilisation as rising debt obligations squeeze public finances in both countries.
In Egypt, customs authorities and the National Telecommunications Regulatory Authority (NTRA) said on Tuesday that duties on foreign mobile phones brought in by travellers would be reinstated from Jan. 21. The move ends a temporary exemption introduced in January 2025, which allowed travellers to use foreign-purchased phones with local SIM cards indefinitely, provided devices were declared on arrival.
Under the new framework, Egyptians living abroad will receive a 90-day exemption for personal devices during each visit. Tourists may continue using foreign SIM cards without paying duties, but those seeking local connectivity must purchase a special “tourist SIM,” which also carries a 90-day exemption.
Officials said the original exemption had been designed as a temporary measure until domestic manufacturing expanded. Egypt now hosts 15 international phone manufacturers producing more than 20 million devices annually. Authorities said reinstating duties would improve compliance, curb smuggling, and allow better monitoring of devices connected to domestic networks.
In Côte d’Ivoire, the government introduced a 9% value-added tax (VAT) on fertiliser production inputs and packaging materials under the 2026 budget law, effective Jan. 17. The products had been fully exempt until 2025. Although the standard VAT rate is 18%, officials opted for a reduced 9% levy to mitigate the impact on producers and farmers.
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Côte d’Ivoire imports raw materials for domestic blending into NPK fertilisers. Key operators include SOLEVO and ETG. According to the International Fertilizer Development Center, the country imported 573,123 tonnes of fertiliser in 2024, with urea accounting for 32% of volumes, potassium chloride 24%, and NPK 14%. Economists warn that higher input costs could be passed to farmers, potentially slowing fertiliser use.
The rollback of tax relief in both economies coincides with rising debt pressures. Egypt’s sovereign debt rose to $161.2 billion by September 2025, up from $156.7 billion in March, pushing the debt-to-GDP ratio above 45%, according to national statistics. The International Monetary Fund (IMF) projects that Egypt’s external financing needs will remain elevated over the next two fiscal years before easing. The government aims to reduce external debt by $1–2 billion annually, but a growing share of domestic revenue is absorbed by debt service.
In Côte d’Ivoire, debt servicing reached CFA861 billion (about $1.5 billion) in the first half of 2025, equivalent to 24.4% of tax revenue and 10.4% of total public resources. External debt accounted for over 60% of the burden. The IMF projects public debt at 58.1% of GDP in 2025, placing the country in the “moderate risk” category.
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After years of using tax exemptions to support consumption and attract investment, both governments are reasserting revenue discipline as debt service costs rise and access to global financing tightens. Analysts say the measures signal a more assertive fiscal stance, with implications for businesses and households facing higher effective tax burdens.
“These adjustments are part of broader efforts to strengthen public finances and ensure sustainable debt management,” said a West African fiscal analyst. “Governments are moving away from relief policies and prioritising revenue mobilisation amid tighter global conditions.”
The return to stricter tax policies comes as African governments balance the need to maintain investment appeal with the imperative to stabilise public finances, particularly in sectors considered politically sensitive, such as consumer electronics in Egypt and fertiliser production in Côte d’Ivoire.
