In Madagascar, mobile internet is at a major turning point. With wide network coverage, supported by decades of telecommunications industry investments, the country has a strong technological foundation. However, access to the internet remains limited and not easily accessible for a significant portion of the population. While the Electronic Communications Bill No. 040/2026 is seen as a decisive step to modernize the sector, what are the urgent structural reforms needed to transform this connectivity into a true lever for digital inclusion?
Digital taxation, the main barrier to overcome
The barrier to entry lies not in a lack of infrastructure, but rather in the cost of acquiring equipment. Some of the heaviest taxation in Africa directly impacts the purchasing power of Malagasy households and hinders the acquisition of affordable smartphones, a crucial step for using 4G or 5G services. The Groupement des opérateurs de télécommunications de Madagascar (GTM) has strongly emphasized the need to prioritize the elimination or reduction of several taxes.
First and foremost, abolishing the 8% excise duty on telecoms is crucial, as it increases service costs and mechanically hinders data democratization. Additionally, revising the 5% tax on mobile finance is necessary, as it hampers access to digital financial services for the unbanked population and restricts the digital economy as a whole. Finally, reducing import taxes on entry-level devices, particularly through VAT and customs duty reductions, would stimulate the equipment of Malagasy households and maximize the socio-economic impact of existing networks.
The compelling example of regional benchmarking
These alleviation measures are based on realities already proven in Africa. Recent studies by GSMA and the World Bank consistently show that the tax pressure applied to the telecommunications sector is the main obstacle to connectivity in developing countries.
The example of South Africa is particularly revealing. In early 2025, the South African government strategically chose to eliminate the 9% luxury tax on entry-level smartphones. Just a few months after this tax reform, GSMA observed a spectacular 40% drop in basic phone purchases in favor of smartphones, significantly accelerating the country’s digital inclusion.
On a macroeconomic level, the impact is massive: data from the World Economic Forum and the Broadband Commission estimate that a 10% increase in mobile broadband adoption in Africa automatically generates a 2.5% growth in GDP. In Madagascar, where the cost of a smartphone still represents an oversized portion of the monthly income for the poorest households, these regional examples confirm the urgent need for targeted tax policy.
A predictable regulatory framework to support price reduction
The sustainability of investments in infrastructure, such as fiber optic deployment or network extension in rural areas, relies primarily on a stable and incentivizing regulatory framework. In this regard, the legal overhaul proposed by Bill No. 040/2026 must strengthen the transparent regulation already enforced by ARTEC, particularly through the regulation of national backbone wholesale prices and interconnection rules.
It is precisely this market stability that has provided the necessary clarity for operators to make historic pricing efforts on Mobile Data. Despite persistent local inflation and high imported infrastructure costs, the private sector has significantly reduced retail prices to democratize internet access. However, these price reductions granted on operator margins cannot progress further without political and fiscal support from the State.
The urgency of an assertive public policy
Madagascar has one of the most modern and extensive networks in its sub-region, but the potential of these infrastructures remains underutilized. For this technological capital to translate into widespread adoption, the ongoing legislative process requires strong public ambition capable of combining the dynamism of the private sector with a fiscal shock favorable to consumers.
Reducing taxation on digital tools and services is now the only true key to ensuring that the population can finally benefit from mobile internet.
