The president and chief executive officer of MTN Group, Ralph Mupita, has warned that the rising cost of smartphones, driven by an 80 per cent increase in memory chip prices, could slow Africa’s digital inclusion efforts.

Mr Mupita disclosed this on Wednesday in Lagos during an engagement with the fellows of the Media Innovation Programme (MIP) of MTN Nigeria.

The MTN chief outlined major challenges confronting the telecommunications industry and the wider digital economy.

According to him, shipments of smartphones to Africa have declined by 27 per cent, as the growing demand for memory chips from artificial intelligence (AI) infrastructure developers intensified competition for the components used in mobile devices.

The industry, he said, had hoped that entry-level internet-enabled devices would become available for between $30 and $50,  making smartphones more accessible to millions of people.

He noted, however, that the minimum price was now projected to rise to between $80 and $100 because of increasing memory chip costs.

“Memory prices have gone up by 80 per cent, impacting the cost of data-capable devices,” he said.

Mr Mupita explained that memory chips are essential components of smartphones and other electronic devices but manufacturers are facing increased competition from companies building AI data centres and related infrastructure.

He said this development presented a significant challenge for Africa, where device affordability remained a major barrier to internet access and digital participation.

“The really big difficulty today is the cost of devices,” he said, noting that the challenge was no longer limited to expanding network coverage or reducing data costs.

Mr Mupita said that although telecommunications operators had made substantial investments in extending network coverage, millions of people remained unable to fully benefit from digital services because they lacked affordable internet-enabled devices.

He cited Nigeria as an example, noting that MTN had more than 90 million subscribers in the country but a substantial proportion of its customer base was yet to enjoy the full benefits of internet connectivity.

“Only two-thirds of our customers are still using the internet and data very actively,” he said, adding that more work was required to extend digital inclusion.

The MTN chief said governments could help address the challenge by reviewing import duties and other taxes that increased the cost of smartphones.

He noted that some African countries were exploring measures to make devices more affordable, recognising that broader access to smartphones could improve productivity and contribute to economic growth.

Mr Mupita also identified device financing as one of the ways MTN was responding to the challenge.

He said the company was working with financial institutions to enable customers to purchase smartphones through instalment payment arrangements.

“We are enabling customers to buy devices, working with bank partners to bring financing plans to devices,” he said.

He explained that such partnerships could allow customers to spread payments over a period, making increasingly expensive devices more accessible.

Mr Mupita, however, said expanding access to smartphones would require collective action by telecommunications operators, governments, financial institutions and device manufacturers.

He said operators could also aggregate demand to encourage manufacturers to supply devices at more affordable prices.

For Nigeria, he said, addressing device affordability remained essential to ensuring that the country’s growing digital infrastructure translated into meaningful access to online services, digital education, artificial intelligence and economic opportunities.

He stressed that the challenge was not simply about selling more phones but ensuring that more people could participate in the digital economy.

(NAN)