Rwanda’s mobile telecommunications sector is calling for tax reforms, arguing that the current fiscal system places a heavy burden on operators and threatens investment in infrastructure, network expansion and digital inclusion.
The appeal is contained in a policy brief prepared by the GSMA, a global organisation representing the mobile ecosystem, which argues that Rwanda’s telecom industry faces a disproportionately high tax burden compared with other sectors of the economy.
According to the report, mobile operators in Rwanda are subject to more than 30 taxes, fees and levies, including corporate income tax, value-added tax, customs duties, employment taxes, regulatory charges and an excise duty on mobile services.
The sector-specific excise duty on mobile services is scheduled to rise from 12 percent in June 2025 to 14 percent in June 2026 and 15 percent in June 2027.
GSMA said removing the excise duty would help make mobile services more affordable, particularly for lower-income consumers, while supporting wider access to digital connectivity.
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The report found that the average effective tax rate for the mobile sector stands at 74 percent of pre-tax profits, significantly higher than the retail finance sector at 34 percent and agro-processing at 29 percent.
As a share of revenue, telecom operators pay about 12 percent compared with 10 percent for both retail finance and agro-processing.
The brief also highlighted the impact of revenue-based charges, including a 2 percent Universal Service Fund levy on gross revenue and spectrum fees, which together account for 37 percent of pre-tax profits.
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GSMA said such charges reduce operators’ ability to invest in network upgrades because they are applied regardless of profitability.
The organisation described the current system as a “structurally rigid” tax framework that does not adequately consider the capital-intensive nature of telecommunications businesses.
The financial performance of Rwanda’s two main mobile operators has also varied.
MTN Rwanda recorded a major recovery in 2025, posting a profit after tax of 10.8 billion Rwandan francs, reversing a restated net loss of 5.37 billion francs in 2024.
Meanwhile, Airtel Rwanda reported a net loss of 78.981 billion francs for the financial year ending March 2025, with accumulated losses exceeding 566 billion francs.
Beyond the two leading operators, Rwanda’s wider telecommunications sector includes internet service providers and infrastructure companies supporting connectivity services.
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GSMA proposed three main reforms to improve the sector’s competitiveness.
The organisation recommended moving towards a broader tax framework by reducing sector-specific and revenue-based charges, removing the excise duty on mobile services and simplifying the overall tax structure by eliminating overlapping fees.
It said a more predictable fiscal environment would encourage long-term investment, improve service quality and support Rwanda’s digital transformation goals.
The analysis, conducted by Ernst & Young, was based on 2025 data and modelled the impact of taxation on a representative telecom company over a 15-year period.
The telecom industry says easing the tax burden would allow operators to redirect more resources towards expanding networks, improving connectivity and reaching underserved communities.
