Namibia’s telecommunications regulator has proposed tax relief and other incentives aimed at lowering the cost of 4G-compatible smartphones, as the government seeks to accelerate broadband adoption and prepare for the phase-out of older mobile networks.
About 35 percent of Namibia’s population remained offline at the end of 2025, according to data from DataReportal, despite extensive mobile network coverage across much of the country. Regulators and operators say high device costs, driven in part by taxation, have limited effective use of existing infrastructure.
The Communications Regulatory Authority of Namibia (CRAN) said the proposed measures would target affordability barriers that prevent consumers from upgrading to 4G-enabled devices.
CRAN Chief Executive Officer Emilia Nghikembua disclosed the proposal last week during the rollout of a telecommunications tower by state-owned operator Mobile Telecommunications Company (MTC) Namibia in the remote Kunene region. She was responding to concerns raised by the operator about the underutilisation of its network infrastructure.
“The infrastructure is largely in place, but adoption remains constrained by the affordability of compatible devices,” Nghikembua said, adding that tax relief could help bridge the gap between coverage and usage.
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MTC Namibia, the country’s largest mobile operator, said network expansion has not translated into proportional growth in service uptake. Acting board chair Mercia Geises said the operator runs about 74 towers in the Kunene region, all compatible with 4G technology, but current utilisation stands at roughly 50%.
“Even when we put the infrastructure in place, the question remains how to bring our communities to adopt and use that infrastructure,” Geises said.
The proposal comes as Namibia accelerates a broader technological transition. The government has announced plans to begin phasing out 2G and 3G networks this year, shifting toward 4G, 5G and satellite-based technologies. Authorities have also signalled that imports of 2G and 3G phones will eventually be banned.
Under the new policy direction, consumers will be required to own 4G-compatible smartphones or more advanced devices to maintain access to mobile services. However, such devices remain unaffordable for a significant portion of the population.
According to the GSMA, the global mobile industry association, taxation is a major contributor to device unaffordability in many developing markets. In some countries, value-added tax and import duties add more than 30% to the retail price of a smartphone.
In its Mobile Connectivity Index 2025, the GSMA gave Namibia a score of 46 out of 100 for device affordability, where 100 represents a fully affordable market.
World Bank data underline the scale of the challenge. In low- and middle-income countries, the cost of an entry-level smartphone is equivalent to about 18% of an adult’s monthly income. For the poorest 40% of households in sub-Saharan Africa, that figure rises to 73%.
International affordability benchmarks suggest a smartphone should cost no more than 15% to 20% of average monthly income. While the availability of devices priced below $100 has improved slightly in recent years, supply remains insufficient to meet demand among low-income users.
CRAN’s tax relief proposal is not binding at this stage and will require government approval before implementation. Its potential impact on retail prices remains uncertain.
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The GSMA has urged governments to introduce targeted tax exemptions for entry-level smartphones, while encouraging telecom operators to deepen partnerships with device manufacturers. Suggested measures include cost-reduction strategies, bundled offers and installment payment plans to improve access to 4G- and 5G-capable devices.
Beyond device costs, the GSMA said broader adoption of mobile broadband also depends on digital skills, service affordability, network quality and the availability of relevant local content.
As Namibia pushes ahead with its digital transition, policymakers face the challenge of ensuring that technological upgrades do not widen the country’s digital divide.
