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Telecom Reforms Could Add $3.7 Billion to DRC GDP by 2029, GSMA Says

Telecom Reforms Could Add $3.7 Billion to DRC GDP by 2029, GSMA Says

• GSMA estimates telecom reforms could generate 9,800 billion Congolese francs ($3.7 billion) in GDP by 2029.
• Mobile operators in DRC face a tax burden of 91% of profits, among the heaviest compared to mining (71%) and banking (34%).
• The sector could connect 9.7 million new mobile internet users and unlock $3.2 billion in value across mining, agriculture, and public services.

The first Digital Africa Summit in Kinshasa on Sept. 18 became a platform for mobile operators to advocate tax and regulatory reforms in the Democratic Republic of Congo (DRC). The push relied on a report by the GSMA, the global mobile industry association, titled “Driving Economic Growth through Digital Transformation in the DRC.”

Angela Wamelo, GSMA’s Africa director, said the reforms could add 9,800 billion Congolese francs ($3.7 billion) to GDP and connect 9.7 million additional mobile internet users by 2029. The report projected that mobile adoption could release more than 8,600 billion Congolese francs ($3.2 billion) in value across mining, agriculture, and public services.

“The Democratic Republic of Congo has the opportunity to leapfrog into a digital-driven economy,” Wamelo said. “But to realize this potential, reforms in taxation, spectrum management, and energy infrastructure must be a priority. We aim to regulate this sector in DRC to make it more transparent and attract investors,” she added.

A separate GSMA report from June, “Mobile Sector Taxation: Comparative Tax Burden in DRC,” highlighted the heavy fiscal environment operators face. It said mobile operators pay on average 91% of their profits in taxes, compared with 71% for mining companies and 34% for retail banks. The report blamed multiple sector-specific levies, often calculated on revenues, for deterring investment and limiting service expansion.

The GSMA urged simplification and harmonization of taxes. It recommended modernizing fiscal frameworks through rationalization of sectoral taxes to lower consumer prices and encourage investment. It also called for a collaborative national framework, coordination of energy and digital policies, expanded spectrum access, license reform, skills development through public-private partnerships, and integration of mobile platforms into education, health, and government services.

The government, facing major financing needs, has argued that telecom operators must pay their “fair share” of taxes. Some officials questioned the fiscal contribution of multinational operators, noting that some had not declared taxable profits in nearly two decades, raising suspicions of tax avoidance.

Despite these concerns, Digital Economy Minister Augustin Kibassa Maliba welcomed the GSMA report. He described it as a “clear diagnostic” of the sector’s progress and challenges. “We have the responsibility to transform the recommendations of this report into concrete actions, because it is through them that we will build a true digital economy,” he said.

According to GSMA, the mobile sector contributed an estimated $63–64 billion to DRC’s GDP in 2022 and $66 billion in 2023.

This article was initially published in French by Ronsard Luabeya

Adapted in English by Ange Jason Quenum

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