Mobile phones represent a key asset for African countries to accelerate their digital economies. However, a barrier to this goal is the high cost of the devices. To improve mobile penetration rate across its territory, the Algerian government announced last Feb. 13 it has approved "the abolition of all taxes and duties on e-commerce, mobile phones, computer equipment for personal use and startups."  The measure is provided for in the 2022 finance law approved in December 2021.

By removing the tax on e-commerce, the government facilitates online transactions, especially for individuals who have become accustomed to buying tech devices abroad. For innovators and startup promoters, this is an opportunity to easily acquire technical equipment. In the Finance Act 2022, a cumulative rate of duties and taxes of 133.05% was applied for the purchase of smartphones and tablets, 60.22% for hard drives. This makes the tax more expensive than the actual imported device.

The tax removal measure came after weeks of protests by Algerians, who kicked off an online campaign using the hashtag #khelini_nechri (let me buy). During the 6th edition of the Forum "Rakmana," held on January 19 in Algiers, the Algerian Group of Digital Actors (GAAN) had also denounced these taxes that "go against the general interest."

According to the Alliance for Affordable Internet and the Global System Operators' Association (GSMA), the high cost of smartphones is one of the main barriers to mobile Internet penetration in Africa, where the rate was only 28% in 2020.

Muriel Edjo