MTN Group President and Chief Executive Officer Ralph Mupita has warned that rising smartphone costs, driven by an 80 per cent increase in memory chip prices, could slow digital inclusion in Africa.
Mupita spoke on Wednesday in Lagos during an engagement with fellows of MTN Nigeria’s Media Innovation Programme (MIP).
He outlined key challenges facing the telecommunications industry and the wider digital economy.
Smartphone shipments to Africa have declined by 27 per cent, he said, as growing demand for memory chips from artificial intelligence (AI) infrastructure developers has intensified competition for components used in mobile devices.
The industry had hoped that entry-level internet-enabled devices would cost between 30 and 50 dollars, making smartphones more accessible. However, the minimum price is now projected to rise to between 80 and 100 dollars because of increasing memory chip costs.
“Memory prices have gone up by 80 per cent, impacting the cost of data-capable devices,” he said.
Mupita said memory chips are essential components in smartphones and other electronic devices, but manufacturers are facing increased competition from companies building AI data centres and related infrastructure.
He said this posed 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, adding that the challenge was no longer limited to expanding network coverage or reducing data costs.
Although telecommunications operators had invested significantly in extending network coverage, millions of people could not fully benefit from digital services because they lacked affordable internet-enabled devices, he said.
Mupita cited Nigeria, where MTN has more than 90 million subscribers, but a substantial proportion of customers are yet to benefit fully from internet connectivity.
“Only two-thirds of our customers are still using the internet and data very actively,” he said, adding that more work was needed to extend digital inclusion.
He said governments could help address the challenge by reviewing import duties and other taxes that increase smartphone costs.
Some African countries are exploring ways to make devices more affordable, recognising that wider smartphone access could boost productivity and economic growth, he said.
Mupita also identified device financing as one way MTN was responding to the challenge. The company is working with financial institutions to help customers buy smartphones through instalment plans.
“We are enabling customers to buy devices, working with bank partners to bring financing plans to devices,” he said.
Such partnerships could allow customers to spread payments over time, making increasingly expensive devices more accessible, he said.
Mupita said expanding smartphone access would require collective action by telecommunications operators, governments, financial institutions and device manufacturers. Operators could also aggregate demand to encourage manufacturers to supply devices at more affordable prices.
For Nigeria, addressing device affordability is essential to ensuring that the country’s growing digital infrastructure translates into meaningful access to online services, digital education, AI and economic opportunities, he said.
He stressed that the challenge was not simply about selling more phones, but ensuring that more people could participate in the digital economy.
