The GSMA and its Handset Affordability Coalition have identified six African countries to pilot the rollout of smartphones priced at approximately $40. The countries selected for the program are the Democratic Republic of the Congo, Egypt, Ghana, Morocco, Nigeria, and South Africa. The initiative, announced by the coalition's pioneering members, aims to address the single largest barrier to digital inclusion on the continent and is scheduled to begin its pilot phase in the second half of 2026.

The coalition, which includes major industry players such as Mastercard, Microsoft, Nokia, and Samsung, alongside mobile operators like Smart Africa, Safaricom, and Vodacom, will focus on developing and distributing a new category of entry-level smartphones. These devices are intended to be 4G-enabled and priced around 30% lower than the current cheapest available models. The GSMA estimates that nearly 800 million people in Sub-Saharan Africa remain unconnected to mobile internet, with handset affordability cited as the primary obstacle.

Angela Wamola, Head of Sub-Saharan Africa at the GSMA, stated that the initiative seeks to make smartphones accessible to a much broader segment of the population. "By bringing together key players from across the ecosystem, we can tackle the affordability challenge holistically," Wamola said. The pilot program will test various commercial models, including potential financing options and bundling with mobile data and digital services, to determine the most effective strategies for sustainable adoption.

The selection of the six pilot countries reflects a strategic mix of large, diverse markets with significant populations still on 2G and 3G networks. Nigeria and Egypt, two of Africa's most populous nations, have vast potential for digital growth but face high device costs relative to average incomes. Ghana and South Africa, with more mature mobile money and fintech ecosystems, present opportunities to bundle affordable hardware with financial services. The inclusion of the DRC and Morocco adds geographic and market diversity to test the model's viability in different regulatory and economic environments.

This push for cheaper hardware coincides with broader industry efforts to deepen digital financial inclusion through software and service expansion. In a separate development, mobile money provider PawaPay and online trading platform Deriv recently partnered to expand mobile money access for Deriv's clients in eight African markets, including Ghana, Kenya, and Nigeria. Such partnerships highlight the growing demand for reliable digital transaction channels, a demand that remains constrained when users are limited to basic feature phones.

The success of the $40 smartphone pilot could have significant implications for the continent's digital economy, potentially accelerating adoption of mobile banking, e-commerce, and educational services. The coalition's approach of involving manufacturers, operators, and technology firms aims to create a scalable model that can be replicated beyond the initial six countries. The findings from the pilots, expected in 2027, will inform a broader rollout strategy across Africa.