The price of a basic smartphone keeps millions of East Africans off the internet, and memory chip costs are about to push it higher. That is the central finding of the GSMA’s State of Mobile Internet Connectivity 2026 report, published this month.
Sub-Saharan Africa has the lowest rate of mobile internet use of any region. Only 25% of people use it, while 66% live within network coverage and stay offline. The signal reaches them. The phone, the data bundle or the know how does not.
Five East African countries rank among the world’s largest offline groups
| Country | People covered by a network but not online |
|---|---|
| Ethiopia | 100 million |
| Tanzania | 50 million |
| Uganda | 40 million |
| Kenya | 40 million |
| Sudan | 40 million |
Source: GSMA Intelligence, 2025 estimates
Cost decides who goes online
Surveys in Kenya, Uganda and Ethiopia show one pattern. Among people who know about mobile internet but do not use it, handset cost ranks first. Where you live changes the odds sharply.
| Measure | Kenya (urban / rural) | Uganda (urban / rural) | Ethiopia (urban / rural) |
|---|---|---|---|
| Adults using mobile internet | 68% / 49% | 49% / 27% | 48% / 19% |
| Adults owning an internet phone | 65% / 48% | 50% / 30% | 61% / 30% |
| Adults using it daily | 57% / 37% | 25% / 13% | 29% / 7% |
| Non-users naming handset cost as the main barrier | 52% / 55% | 53% / 49% | 52% / 41% |
Source: GSMA Consumer Survey, 2025
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The cost burden falls hardest on the poorest households and on women.
| Group | Entry level handset as share of monthly income |
|---|---|
| All people, low and middle income countries | 15% |
| Men | 12% |
| Women | 20% |
| Poorest 20%, low and middle income countries | 44% |
| Poorest 20%, Sub-Saharan Africa | 76% |
Data adds to the bill. Twenty gigabytes takes 14% of average monthly income in Sub-Saharan Africa, five times the median for low and middle income countries.
Chip prices add pressure
Demand from AI data centres has driven up memory prices. They more than doubled between the third quarter of 2025 and the first quarter of 2026, then rose another 80% to 90% in the second quarter, the report says, citing Counterpoint Research. Xiaomi’s Redmi A7 launched in April 2026 at about $110, 40% above its predecessor’s price, with near identical hardware.
| 2026 smartphone shipments | Change on 2025 |
|---|---|
| Global | Down 14% (174 million fewer) |
| Phones under $100 | Down 36% (about 90 million fewer) |
| Sub-Saharan Africa | Down 16 million, more than a quarter |
The GSMA warns this puts at risk the $40 4G smartphone programme it launched in 2025 with six African operators, because one entry level memory chip now costs more than that.
What the report wants done
The GSMA calls on governments, operators and development groups to act together. “Closing the digital divide requires coordinated, targeted action across all stakeholders,” the report states.
| Recommendation | What changes for ordinary people |
|---|---|
| Remove taxes and duties on entry level phones | Lower shelf prices for every buyer |
| Widen handset financing | A trader or farmer can pay in instalments instead of upfront |
| Cut data costs and target subsidies at first time buyers | Lower monthly spend for people already online |
| Teach digital skills tied to daily needs | Users move from chat apps to payments, farm advice and health services |
| Set rules against scams, fraud and harassment | Fewer people limit their use out of fear |
| Fund content in local languages | Services people can read and use |
| Expand electricity, ID access and agent networks | Easier SIM registration and phone charging, especially for women and rural users |
Instalment plans already exist in Kenya. Safaricom sold a Sh3,499 Neon Kicka 4 with a three month layby scheme in 2018. The report suggests such offers matter more now. A tax cut on cheap handsets would lower the price for everyone, while financing helps those who cannot pay in one go.
Women face the steepest odds. They make up 58% of the adult offline group in low and middle income countries. Rural users also lag, with 19% of rural Ethiopian adults online.
Connection alone does not settle the matter. In Kenya, 96% of users say they have used social media, but only 35% have looked up farming information. Skills training and local language services would help close that gap.
The report leaves open how quickly prices will fall. Until they do, the phone in a Nairobi shop window may stay out of reach for the families who would gain most from it.
More business and technology reporting is available at Khusoko.
