The GSMA’s latest report projects that four targeted policy changes in Madagascar could bring mobile internet access to more than 1.1 million additional people by 2031, while injecting MGA 4.1 trillion into the country’s GDP. The findings were presented during the Digital Africa Summit in Antananarivo on October 16, 2026, alongside a separate study on spectrum pricing trends across the continent.
Madagascar’s mobile connections rose from 12.3 million in 2021 to 22.5 million at the end of 2025, according to the GSMA. Unique mobile internet penetration remained low at 14.3% in 2025. In 2026, 66% of the population lived within mobile broadband coverage but did not use mobile internet. The report names smartphone affordability and digital literacy as major barriers. About one-third of the rural population lives outside 4G coverage, which the GSMA attributes to difficult terrain, limited electricity, costly backhaul and high operating costs.
Rural connectivity suffers most, with roughly one-third of residents lacking 4G coverage due to difficult terrain, power instability, and the expense of backhaul networks. The report outlines four policy priorities: cutting device costs, expanding rural networks, adjusting tax structures, and developing voice-first services.
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To make smartphones more affordable, the GSMA recommends scrapping a 6% copyright fee, a 20% import duty, and a 1% regulatory levy on qualifying entry-level smartphones, while introducing VAT exemptions and financing programs for low-income buyers. For rural deployment, it proposes a costed Rural Connectivity Plan, making the funding mechanism transparent and results-based, and coordinating telecoms and electricity investment, including mini-grids anchored by mobile towers.
Tax reforms would consider removing the 8% sector-specific excise duty, cut the 2% telecoms and ICT regulation tax to 1%, and zero-rate imports of essential broadband network and rural-site energy equipment. The GSMA also emphasizes adapting voice services to Madagascar’s low-literacy population through reliable speech recognition tools.
These proposals align with Madagascar’s Digital Strategic Plan 2023–2028. The broader African spectrum analysis reveals a parallel obstacle: spectrum licensing costs in the region run 24% above global averages, constraining network expansion. The GSMA estimates that addressing pricing inefficiencies could add over $120 billion to African GDP by 2035, while connecting an extra 50 million people to 4G and 170 million to 5G.
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Madagascar’s experience reflects a broader African pattern where network coverage expands faster than usage. In Ghana, for instance, spectrum pricing directly influenced MTN’s successful bid for all available 3 GHz 5G spectrum in recent auctions. The GSMA’s recommendations echo similar successes elsewhere, demonstrating that removing financial and regulatory hurdles can drive both economic growth and digital inclusion.
The report’s estimates rest on full adoption of the proposed changes. Affordability remains a critical hurdle—rising memory chip costs have already priced out the $30 smartphone for many Africans. Without intervention, the divide between coverage and actual usage in Madagascar could endure, undermining the economic potential of digital transformation.